Franchising as a form of divestment: an Italian study
Article Abstract:
The focus of this article is on divesting in-house trade activities into franchising operations. Conventional wisdom and assets analysis would suggest that firm growth objectives could only be attained through investments, whereas a divestment - usually seen as an asset shrinking - will necessarily determine a reduction of the strategic scope of the business. Similarly, franchising is usually regarded as a means for fast expansion of the franchisor's retail network, characterized by a low capital investment and a high level of control on marketing policies. However, companies often carry out divestments by changing the form of control on retail operations, from ownership to contractural relationships (i.e., franchising). In this study, empirical findings highlight circumstances under which franchising is used as a form of divestment, and that show how divesting assets and substituting them with contractual relationships can lead to a variety of strategic achievements and can help coping with environmental contingencies, such as needs for growth and competitive restructuring. (Reprinted by permission of the publisher.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1997
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Optimal franchise contracts with private cost information
Article Abstract:
A study examines the impact of cost of sale on the decision of companies in taking up franchise.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 2006
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How many franchises in a market?
Article Abstract:
The way in which companies use their number of franchises as a strategic tool is considered.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 2001
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