Franchise failure: a reassessment of the Bates (1995) results

Gary Castrogiovanni () and Robert Justis ()

Service Business, 2007, vol. 1, issue 3, 247-256

Abstract: Franchising is often touted as a safe route to business ownership in the service arena. Yet findings by Bates (J Small Bus Manage 33(2):26–36, 1995 ) suggest that franchising may be a riskier alternative for prospective business owners than starting a non-franchised business. We contend that this conclusion is inappropriate because flaws in Bates’ study lend themselves to alternative interpretations of his results. The most critical flaws and plausible alternative interpretations are explained, and implications for prospective business owners are discussed. Copyright Springer-Verlag 2007

Keywords: Franchising; Small business; Failure; Survival; Risk (search for similar items in EconPapers)
Date: 2007
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DOI: 10.1007/s11628-007-0023-1

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