Abstract
This study examines franchising as a form of business organization. A model is developed illustrating how franchising both reduces agency costs that would be associated with the use of company-employed managers and permits franchisors to expand more rapidly than would be possible using company-owned units. The former factor appears to be the primary explanation for the success of franchising as an organizational form.
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© 1991 Springer Science+Business Media Dordrecht
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Dyl, E.A. (1991). Financial Issues in Franchising. In: Yazdipour, R. (eds) Advances in Small Business Finance. Financial and Monetary Policy Studies, vol 21. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-3462-0_7
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DOI: https://doi.org/10.1007/978-94-011-3462-0_7
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