Proportion of Franchised Outlets and Franchise System Performance

Luis Vázquez

The Service Industries Journal, 2007, vol. 27, issue 7, 907-921

Abstract: This article explores how the proportion of franchised outlets in franchise systems influences two performance outcomes of these systems: the growth in sales per outlet and the proportion of outlets discontinued. It was found that franchise systems whose proportions of franchised outlets are misaligned according to agency theory show a higher proportion of outlets discontinued and lower growth in sales per outlet than their better aligned counterparts.

Date: 2007
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DOI: 10.1080/02642060701570685

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

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