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Company Ownership vs Franchising: Issues and Evidence

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  • R.S. Thompson
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    Abstract

    Uses comprehensive data on the geographical and industry distribution of company-owned and franchised outlets in franchise chains to test hypotheses on the ownership fror choice in US state markets. Comfirms the importance of geographical factors, associating company ownership with urbanization and/or higher population densities, an therefore concluding that in these cases monitoring cost are lower. Concludes further that franchising supplement the financing of the chain and is particularly useful in achieving rapid growth.

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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal Journal of Economic Studies.

    Volume (Year): 19 (1992)
    Issue (Month): 4 (September)
    Pages: 31-42

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    Handle: RePEc:eme:jespps:v:19:y:1992:i:4:p:31-42

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    Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
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    Related research

    Keywords: Finance; Franchising; Growth; Ownership; USA;

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    Cited by:
    1. Knott, Anne Marie & McKelvey, Bill, 1999. "Nirvana efficiency: a comparative test of residual claims and routines," Journal of Economic Behavior & Organization, Elsevier, vol. 38(4), pages 365-383, April.
    2. Helmers, Claes Gustav & Connor, John M. & Florax, Raymond J.G.M. & Vroom, Govert, 2009. "Entry, Ownership Form, and Spatial Location: An Analysis of the Hotel Industry," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49561, Agricultural and Applied Economics Association.

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