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Die Auswahl produktiver Mitglieder in Franchisesystemen

Author

Listed:
  • Thomas Bürkle

    (Johann Wolfgang Goethe-Universität)

  • Thorsten Posselt

    (Universität Leipzig)

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.

Suggested Citation

  • Thomas Bürkle & Thorsten Posselt, 2003. "Die Auswahl produktiver Mitglieder in Franchisesystemen," Schmalenbach Journal of Business Research, Springer, vol. 55(2), pages 87-111, March.
    • Handle: RePEc:spr:sjobre:v:55:y:2003:i:2:d:10.1007_bf03372700
    DOI: 10.1007/BF03372700
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    L23; M12;

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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