Abstract
This paper investigates the mix of franchised and company-owned outlets among franchise chains. Hypotheses are formulated about the proportion of franchised outlets and are tested using firm-level data from a national survey of franchisors. Empirical results support the hypothesis that company-owned outlets serve as a way for the franchisor to give itself an incentive to maintain system quality.
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Scott, F.A. Franchising vs. company ownership as a decision variable of the firm. Rev Ind Organ 10, 69–81 (1995). https://doi.org/10.1007/BF01024260
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DOI: https://doi.org/10.1007/BF01024260