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The Dynamics of Contractual Design: Determinants of Contract Duration in Franchising Networks

In: Interfirm Networks

Author

Listed:
  • Odile Chanut

    (University of Aix-Marseille)

  • Magali Chaudey

    (GATE Lyon-St Etienne
    University of Lyon)

  • Muriel Fadairo

    (GATE Lyon-St Etienne
    University of Lyon)

  • Frédéric Perdreau

    (University of Lyon
    COACTIS Lyon St. Etienne)

Abstract

This paper deals with the contractual design in franchising networks. We investigate the determinants and the evolution of contracts duration on the basis of a multidisciplinary approach using law, management and economics. Taking into account the traditional explanation of franchise contracts duration in terms of specific investments, this paper focuses on the dynamics of contractual design. The empirical analysis is based on franchise French data, coupled with financial data. We use descriptive statistics and econometrics. A dynamic panel data model for contract length is estimated. Our results highlight specific dynamics and adjustment costs in the determination of contracts duration.

Suggested Citation

  • Odile Chanut & Magali Chaudey & Muriel Fadairo & Frédéric Perdreau, 2015. "The Dynamics of Contractual Design: Determinants of Contract Duration in Franchising Networks," Springer Books, in: Josef Windsperger & Gérard Cliquet & Thomas Ehrmann & Georg Hendrikse (ed.), Interfirm Networks, edition 127, pages 9-33, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-10184-2_2
    DOI: 10.1007/978-3-319-10184-2_2
    as

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