Analysis of efficiency and profitability of franchise services

Constantino J. Garcia Martin, Amparo Medal-Bartual and Marta Peris-Ortiz

The Service Industries Journal, 2014, vol. 34, issue 9-10, 796-810

Abstract: The present study analyses the relative efficiency of franchise services and characterises the best companies, confirming the relationship between efficiency and profit. These companies are from 'the trade and other services sector', the main group of service-providing companies in the Spanish economy. The methodology calls for first comparing the relative efficiency of franchisers and ownership enterprises. Second, the focus turns to the most efficient franchise services, using a super-efficiency model to rank them. The paper then goes on to cover the analysis of the main characteristics of the best franchise enterprises, the number of own establishments in a franchise business and the profitability of the company. This paper presents arguments as to why companies from the trade and other services sector are included. The main conclusion is that, whilst the number of establishments is irrelevant in achieving greater efficiency, many of the most efficient enterprises have high returns.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/02642069.2014.905921 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:servic:v:34:y:2014:i:9-10:p:796-810

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FSIJ20

DOI: 10.1080/02642069.2014.905921

Access Statistics for this article

The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

More articles in The Service Industries Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().