Explaining the Distribution of Franchised and Company-Owned Outlets In Franchise Systems

摘要

Agency theory research on franchising, to date, has posited linear effects of franchised characteristics on the distribution of company- owned and franchised outlets in franchise systems. This study argues that many of these characteristics actually have curvilinear effects. Using pooled cross-sectional time series regression analysis on U. S. Franchisors over the 1991-1994 period, this study tests the curvilinear Effects of geographic dispersion, royalty rates, system growth rate, System size, franchise fee and initial investment on the proportion of Outlets franchised.