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Reasons for the expansion in franchising: is it all said?

Author

Listed:
  • Francisco Javier Rondan-Cataluña
  • Antonio Navarro-Garcia
  • Enrique Carlos Diez-De Castro
  • Carlos Javier Rodriguez-Rad

Abstract

The main aim of this work consists of studying and analysing the reasons that drive firms to expand by means of the franchise route. A methodology based on latent class regression has been used, in order to explain the number of franchised units from a set of variables related to the adhesion costs, growth, and internationalization of the franchising chain. Two main conclusions are extracted from the results. On the one hand, the selected variables turn out to be suitable to explain the reasons that impulse companies to expand in franchising versus the development of owned units strategy. On the other hand, different profiles or types of franchisors exist according to the type of expansion chosen.

Suggested Citation

  • Francisco Javier Rondan-Cataluña & Antonio Navarro-Garcia & Enrique Carlos Diez-De Castro & Carlos Javier Rodriguez-Rad, 2010. "Reasons for the expansion in franchising: is it all said?," The Service Industries Journal, Taylor & Francis Journals, vol. 32(6), pages 861-882, December.
    • Handle: RePEc:taf:servic:v:32:y:2010:i:6:p:861-882
    DOI: 10.1080/02642069.2010.550041
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    References listed on IDEAS

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    1. Francine Lafontaine & Kathryn L. Shaw, 1999. "The Dynamics of Franchise Contracting: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 107(5), pages 1041-1080, October.
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