On the economic geography of dual distribution - The case of McDonald’s in Germany

Nisa E. Freiwald (), Steffen Juranek and Uwe Walz ()
Additional contact information
Nisa E. Freiwald: Goethe Business School, Goethe University Frankfurt, Postal: Goethe Business School, House of Finance, Theodor-W.-Adorno-Platz 3, 60323 Frankfurt am Main, Germany

No 2019/14, Discussion Papers from Norwegian School of Economics, Department of Business and Management Science

Abstract: We analyze the allocation of ownership in a franchise system by focusing on location-specific characteristics of the outlets. This study uses a comprehensive data set on McDonald’s restaurants in Germany to investigate the drivers of the decision on whether outlets are companyowned or franchised. We find strong evidence for the repeat-customer hypothesis by showing that outlets are significantly more likely to be company-owned when they are located at places with relatively few repeat customers.We observe the same for outlets that are closer to McDonald’s headquarters. Finally, we find pronounced clustering of multi-unit franchisees.

Keywords: Franchising; dual distribution; agency theory; geo-locational data; economic geography (search for similar items in EconPapers)
JEL-codes: L24 L81 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2019-10-29
New Economics Papers: this item is included in nep-com and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/11250/2625369 Full text (application/pdf)

Related works:
Journal Article: On the economic geography of dual distribution — The case of McDonald’s in Germany (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:nhhfms:2019_014

Access Statistics for this paper

More papers in Discussion Papers from Norwegian School of Economics, Department of Business and Management Science NHH, Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Stein Fossen ().