Add Papers Marked0
Paper checked off!

Marked works


Viewed works

Shopping Cart0
Paper added to shopping cart!

Shopping Cart

Register Now

eKönyvtár library
  • Present an Economic Analysis of the Retail Franchise Contract


    Essays4 Economics

Great deal: today with a discount!

Regular price:
1 528 Ft
You save:
199 Ft
Discounted price*:
1 329 Ft
Add to Wish List
ID number:439747
Published: 04.05.2004.
Language: English
Level: Secondary school
Literature: n/a
References: Not used

The first part of this study has explained the economic analysis of the retail franchise contract, and then demonstrated the literature explanations of the existence of share franchise contracts. The recent increased popularity of franchising lies in the nature of the contract that ensures that both parties have incentives in the ongoing success of the relationship. Literature is supportive to the two-sided moral hazard model, which stresses the importance of incentives and monitoring problems between the two parties involved (Dark 1987, Norton 1988, Lafontaine). Moreover, it was suggested that franchising facilitates to fast growth of the firm (Thompson 1994, Lafontaine 1992, 1996). The second part explained the reasons why should the franchisor leave rents with franchisee by examining one of the most successful franchises in fast-food industry (McDonald's).
The findings presented by Martin (1988) and Thompson (1994) argue for the existence of life cycle in franchising, and supported the notion of cyclical reversion to ownership. However, due to the lack of empirical support, these results cannot give generalizable conclusions of the franchise activity over time.

Author's comment
Load more similar papers

Send to email

Your name:

Enter an email address where the link will be sent:

{Your name} suggests you to check out this eKönyvtár paper on „Present an Economic Analysis of the Retail Franchise Contract”.

Link to paper:


Email has been sent

Choose Authorization Method

Email & Password

Email & Password

Wrong e-mail adress or password!
Log In

Forgot your password?


Not registered yet?

Register and redeem free papers!

To receive free papers from eKönyvtá it is necessary to register. It's quick and will only take a few seconds.

If you have already registered, simply to access the free content.

Cancel Register