Toward a theory of conflict in the franchise system

Spinelli, Steve; Birley, Sue

doi:10.1016/0883-9026(96)00049-3

Cited by 96 publications

(95 citation statements)

References 36 publications

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“…In such cases, franchisees must sacrifice their margins to increase their market share, if the franchisor lets franchisees engage in such practices. Conflict between franchisor and franchisee thereby ensues [66]. Franchisors win if sales are maximized, so they have the incentive to stimulate growth in sales by franchisees.…”

Section: Financial Performancementioning

confidence: 99%

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Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure

2017

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As a business model, franchising makes a major contribution to gross domestic product (GDP). A model that predicts franchisor success or failure is therefore necessary to ensure economic sustainability. In this study, such a model was developed by applying Lasso regression to a sample of franchises operating between 2002 and 2013. For franchises with the highest likelihood of survival, the franchise fees and the ratio of company-owned to franchised outlets were suited to the age of the franchise. Surviving franchises were those that opened franchised outlets at a sustainable pace, increased the franchise fee as intangible assets increased, and effectively managed profitability and efficiency.

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Section: Financial Performancementioning

confidence: 99%

“…These ratios were found to be worse for firms facing bankruptcy. Altman [66] used discriminant analysis to develop the Z-score, which measures a firm's solvency as a linear function of ratios and financial indicators. Ohlson [67] applied logistic regression, using a novel set of financial ratios as inputs.…”

Section: Lasso Regressionmentioning

confidence: 99%

Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure

2017

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“…Asset specificity is a central tenet in TCA, what links this theory directly to the central theme in franchisingtrademark, as an intangible asset (Spinelli & Birley, 1996).…”

Section: Transaction-cost Analysismentioning

confidence: 99%

“…Williamson (1975) develops the hypotheses that there are three forms of organizational governancemarket, hybrid and hierarchy -being each one supported by a different form of contract (Spinelli & Birley, 1996). Market governance has the letter of the contract as the main source for solving conflicts, that is, the classical contract law, where formal terms overlaps less formal terms (Spinelli & Birley, 1996). Hierarchy governance relies on the control over the use and disposition of assets, that is, ownership and integration in the same organization (Crocker & Masten, 1996).…”

Section: Transaction-cost Analysismentioning

confidence: 99%

Evolution in franchising: Trends and new perspectives

Varotto

Aureliano-Silva

2017

Internext

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The Singer Company established a network of resellers for sewing machines. Nowadays franchising is one of the fastest developing forms of business in the world. The evolution of theories that seek to explain franchise systems have been published in academic journals from time to time, but until now there was not a study that have established a social network analysis to quantify the degree of centrality and cohesion of the relationship between the main authors, journals, methods and theories in franchise. Therefore, the main purpose of this study is to extend the knowledge about franchising through an extensive research on its main theoretical perspectives into relevant international academic journals, showing the evolution of the field, highlighting the principal issues, authors and methods. Through a selection of 130 articles ranging from 1966 to 2015 the study investigates five relevant theories in franchising: (1) Resource Acquisition Theory, (2) Agency Theory, (3) Transaction Cost Analysis, (4) Signaling Theory, and (5) Property Rights Theory. A descriptive statistical analysis was done in order to identify the main authors and trends with the most used associated theories in franchise papers. The findings show agency theory and signaling theory, and resource scarcity theory as the main perspectives used in studies about franchising, but other perspectives have been increasing its presence, mainly the institutional theory and resource based-view perspective. The main dependent and independent variables cover a wide range of constructs, but ownership, performance, age, size, growth, geographical dispersion, and internationalization have been the most cited.

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“…During the past decades, attention in relationship marketing has been focused on long-term relationships (Victoria BordonabaJuste and . Depending on the firm's goals and objective, different types of exchange can be used in interfirm relationships (Spinelli and Birley, 1996).…”

Section: Relational Exchange Theorymentioning

confidence: 99%

Performance in Franchise Systems : The Franchisee Perspective

Bourkheili¹

2016

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Toward a theory of conflict in the franchise system

Cited by 96 publications

References 36 publications

Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure

Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure

Evolution in franchising: Trends and new perspectives

Performance in Franchise Systems : The Franchisee Perspective

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