Franchising versus corporate ownership: the effect on price dispersion

Article Abstract:

The level of price dispersion is highest among fast-food restaurant firms that have both franchised and corporate-owned food chains. Moreover, fully franchised fast-food chains have a relatively higher price dispersion compared to fully corporate-owned chains. Furthermore, fast-food restaurant franchisors do not endeavor to standardize the prices of their products even on their corporate-owned units. Franchisors may lose some degree of control over customer-charged prices when they utilize franchising instead of corporate ownership.

Prices and rates, Pricing

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Franchising for sustainable advantage? Comparing the performance of independent retailers and trade-name franchisees

Article Abstract:

Trade-name franchises have been found to increase the competitive edge of retailers. Compared to independent companies, retailers listed under trade-name franchises gain strategic advantage through the acquisition of adequate resources, employing specialized workforces and the creation of diverse marketing opportunities. Despite the wide discrepancy in company performance generated by trade-name franchises as opposed to independent companies, both support virtually the same information intensity.

Models, Retail industry, Retail trade, Entrepreneurship

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