Die Auswahl produktiver Mitglieder in Franchisesystemen

Thomas Bürkle () and Thorsten Posselt ()
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Thomas Bürkle: Johann Wolfgang Goethe-Universität
Thorsten Posselt: Universität Leipzig

Schmalenbach Journal of Business Research, 2003, vol. 55, issue 2, 87-111

Abstract: Summary The long-term success of franchise systems depends to a large extent on the ability and willingness of the franchisees to perform. In this contribution we analyze the consequences of different management abilities of franchisees. Management abilities are unknown to the franchiser before a potential franchisee enters a system. Selecting franchisees of low ability has strongly adverse consequences for the system. We analyze whether an adequate design of royalties and fixed fees allows the franchiser to induce a self-selection process. The question is whether royalties and fixed fees can be fixed so that franchisees with strong management abilities accept the contract whereas candidates with low abilities decline it. We derive the general relationship between royalties and fixed fees when the contract allows a separation of productive and unproductive potential franchisees, and examine the economic feasibility.

Keywords: L23; M12; Franchising; Self-Selection; Personalauswahl; Variable Vergütung (search for similar items in EconPapers)
Date: 2003
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DOI: 10.1007/BF03372700

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