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This study investigates how the organisational form (company ownership vs. franchising) of individual restaurants of a large Spanish restaurant company influences their inspection scores in terms of quality, service, and cleanliness (QSC). The research uses a panel data set that includes bimonthly restaurant‐level data on QSC inspection scores. The aggregate data initially reveal substantial differences between company‐owned and franchised restaurants. Nevertheless, after controlling for other variables, we observe that such differences are in fact minor, or even nonexistent. In addition, when we endogenise the selection of the restaurants' organisational form, the differences become statistically insignificant.

PurposeThis research seeks to discover how the organisational form (franchising vs vertical integration) of 384 fashion stores belonging to a Spanish franchise chain influences unit-level performance measured through three key indicators commonly used in the retail literature: sales per square metre, sales per employee and service quality scores.Design/methodology/approachThe authors have analysed this research question using bivariate and multivariate analyses, with a panel dataset that includes quarterly establishment-level data covering the period from January 2018 to December 2019.FindingsThe aggregated data initially reveal weaker outcomes among franchised establishments. However, after controlling for other variables related to the fashion stores and their local markets, the authors have found that franchised establishments record higher sales both per square metre and per employee than vertically integrated stores. The findings also reveal that franchised establishments record lower service quality scores than their company-owned counterparts.Originality/valueNothing has been published on the differences between franchising and company ownership in terms of establishment-level performance in fashion retailing.

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