The role of scale in Franchise success: evidence from the travel industry

摘要

The relative performance of indepen- dent business locations versus franchised business locations is examined for one industry. Franchised locations are found to have significantly higher sales, adjust- ed for the number of employees, than similar independent business locations. Higher sales are argued to be the result of The franchise's ability to realize eco- Nomies of scale. A mediation model is Used to demonstrate that the greater effi- Ciency of franchised locations is the Result of scale economies.