Making new franchise systems work
Article Abstract:
A study was conducted to determine if new franchise systems have higher chances of survival if they are organized to economize on agency costs. This study examined the effects of passive ownership, cash investment, royalty rate, geographic distribution, complexity, master franchising, length of contract and total investment. Survival analysis was performed on a cohort of 157 new franchisors from 1981 to 1983. Findings revealed that the franchise systems structured to economize on agency costs have higher potentials for survival than those not structured to economize on agency costs. Of the nine variables tested, only royalty rate and length of contract were not supported. Implications were tested.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1998
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Who reports earnings when reporting is optional? The market for new franchises
Article Abstract:
26% of franchisors volunteering earnings-related information impose higher investment risk on new franchisees.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 1999
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Strategizing industry structure: the case of open systems in a low-tech industry
Article Abstract:
Implications of open systems strategy on low-technology industrial structure are analyzed.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 2006
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