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Assessing the intangibles transferred in franchise businesses

Author

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  • Axel Rodríguez
  • Vicente Caballer
  • Natividad Guadalajara

Abstract

In franchise systems, trade relationships between the franchisor and franchisee to exchange intangible resources for a franchise fee and subsequent payments are set up. This article provides data obtained by personal surveys on the restaurant industry franchise system in Mexico. The brand mark established by an initial investment, the time the franchise has operated, and its capacities to make profit are key factors in this exchange. The franchise size and its belonging to the Mexican Franchise Association are other intangible resources transferred in this relationship. Copyright Springer-Verlag 2011

Suggested Citation

  • Axel Rodríguez & Vicente Caballer & Natividad Guadalajara, 2011. "Assessing the intangibles transferred in franchise businesses," Service Business, Springer;Pan-Pacific Business Association, vol. 5(1), pages 29-46, March.
    • Handle: RePEc:spr:svcbiz:v:5:y:2011:i:1:p:29-46
    DOI: 10.1007/s11628-011-0100-3
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    References listed on IDEAS

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    1. Beatriz Minguela-Rata & José López-Sánchez & M. Rodríguez-Benavides, 2009. "The effect of knowledge complexity on the performance of franchise systems in the service industries: an empirical study," Service Business, Springer;Pan-Pacific Business Association, vol. 3(1), pages 101-115, March.
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    4. Yung-Ho Chiu & Jin-Li Hu, 2003. "Payment types and number of franchisees," The Service Industries Journal, Taylor & Francis Journals, vol. 23(4), pages 42-60, September.
    5. Mick Carney & Eric Gedajlovic, 1991. "Vertical integration in Franchise systems: Agency theory and resource explanations," Strategic Management Journal, Wiley Blackwell, vol. 12(8), pages 607-629, November.
    6. James A. Brickley, 2002. "Royalty Rates and Upfront Fees in Share Contracts: Evidence from Franchising," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 18(2), pages 511-535, October.
    7. Nair, Suresh K. & Tikoo, Surinder & Liu, Shuguang, 2009. "Valuing Exclusivity from Encroachment in Franchising," Journal of Retailing, Elsevier, vol. 85(2), pages 206-210.
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    Cited by:

    1. Richard S. Brown, 2017. "Franchisor market power and control rights in franchise systems: the case of Major League Baseball versus the Los Angeles Dodgers," Service Business, Springer;Pan-Pacific Business Association, vol. 11(1), pages 1-21, March.
    2. José M. Ramírez-Hurtado & Ignacio Contreras, 2017. "Efficiency of travel agency franchises: a study in Spain," Service Business, Springer;Pan-Pacific Business Association, vol. 11(4), pages 717-739, December.
    3. Vicente Safón & Alejandro Escribá-Esteve, 2011. "Antecedents and consequences of external risk perception in franchising: evidence from the hospitality industry," Service Business, Springer;Pan-Pacific Business Association, vol. 5(3), pages 237-257, September.
    4. José Pla-Barber & Fidel León-Darder & Cristina Villar, 2011. "The internationalization of soft-services: entry modes and main determinants in the Spanish hotel industry," Service Business, Springer;Pan-Pacific Business Association, vol. 5(2), pages 139-154, June.
    5. Nicolas G. A. Lorgnier & Nicolas Chanavat & Che-Jen Su & Shawn M. O’Rourke, 2020. "Examining the influence of brand-based value congruity: do the values of the International Olympic Committee really matter?," Service Business, Springer;Pan-Pacific Business Association, vol. 14(1), pages 73-99, March.

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