The Use of Franchising by U.S.‐Based Retailers

Ilan Alon

Journal of Small Business Management, 2001, vol. 39, issue 2, 111-122

Abstract: The question of whether to franchise or to own has received much research interest in recent years. Two popular approaches used to explain the proportion of franchising (PF) in the franchisor's system are resource‐scarcity and agency theories. This study combines both theories to explain the proportion of franchised outlets in the U.S. retailing sector between 1990 and 1997. The findings show mixed results with regard to both previous studies and hypothesized relationships. The study shows that the proportion of franchising used by retailers is positively related to size (number of outlets) and geographical scope, and negatively related to the rate of growth and the level of investment. Age and royalty rates are not found to be significant to the proportion of franchising.

Date: 2001
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1111/1540-627X.00011 (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:ujbmxx:v:39:y:2001:i:2:p:111-122

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/ujbm20

DOI: 10.1111/1540-627X.00011

Access Statistics for this article

Journal of Small Business Management is currently edited by Eric Liguori

More articles in Journal of Small Business Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().