Franchising In The Economy

This 2005 book describes in much detail both how and why franchising works. It also analyses the economic tensions that contribute to conflict in the franchisor-franchisee relationship. The treatment includes a great deal of empirical evidence on franchising, its importance in various segments of the economy, the terms of franchise contracts and what we know about how all these have evolved over time, especially in the US market. A good many myths are dispelled in the process. The economic analysis of the franchisor-franchisee relationship begins with the observation that for franchisors, franchising is a contractual alternative to vertical integration. Subsequently, the tensions that arise between a franchisor and its franchisees, who in fact are owners of independent businesses, are examined in turn. In particular the authors discuss issues related to product quality control, tying arrangements, pricing, location and territories, advertising, and termination and renewals.

Franchising networks are experiencing great success in international business organization. Few books try to explain the characteristics of these networks. Contrary to the existing literature this book tackles more theoretical problems related to governance, organization, knowledge management, contract design, incentive and regulation issues both from the economic and management view point. It delivers new theoretical and empirical results regarding plural forms, contract design, and knowledge and strategic management issues. Its purpose is to offer researchers and practitioners new theoretical and empirical insights in one of the most important economic phenomenon at the beginning of the 21st century: Franchising networks as organizational arrangement for growth and internationalization of firms.

While franchising promotes economic and social welfare objectives, Elizabeth Crawford Spencer argues that monitoring and regulation are needed to address potential areas of abuse of the form that can result in costly market inefficiencies. This unique study surveys franchise-specific legislation worldwide as a starting point for a thorough examination and analysis of the role of both private and public regulation of the sector in the context of current theoretical approaches to regulating contractual relationships. The book concludes that properly calibrated regulation can minimize inefficient allocations of power and risk and lead to maximum economic and social benefits by promoting the development of small business, enabling the growth of entrepreneurial skills, and facilitating economic well-being and independence among SMEs. This comparative survey will prove to be invaluable for academics in franchising marketing, management, law and practice. The Regulation of Franchising in the New Global Economy will also appeal to franchise law practitioners, consultants, policymakers and those wishing to influence policy on all sides of the debate in the many jurisdictions that are engaging in the processes of adopting, or reviewing, franchise regulation.

The Economic Effects of Franchising is based on a report generated for United States Senate Small Business Committee in 1970 entitled, "Impact of Franchising on Small Business." This original report resulted in lengthy hearings of franchising issues and opportunities, focusing on the fast food industry. Ozanne and Hunt continued researching the focus of this work and completed their studies in 1971 to produce The Economic Effects of Franchising for Congress and the public. This work discusses, step by step, from researching the franchise and its characteristics, to signing a franchise agreement and training its employees, and the revenue generated to owning a franchise. URBAN B. OZANNE is Professor Emeritus at Florida State University in Tallahassee, Florida. Professor Ozanne wrote The Economic Effects of Franchising with Shelby D. Hunt in 1971. In 1968, Ozanne wrote the article entitled, "Adoption Research: Information Sources in the Industrial Purchasing Situation," with Gilbert A. Churchill, which was published in Marketing and the New Science of Planning by the American Marketing Association. SHELBY D. HUNT is the Jerry S. Rawls and P. W. Horn Professor of Marketing at Texas Tech University, Lubbock, Texas. He has written numerous articles on competitive theory, macromarketing, ethics, channels of distribution, philosophy of science, and marketing theory. For his contributions to theory and science in marketing, he received the 1986 Paul D. Converse Award from the American Marketing Association, the 1987 Outstanding Marketing Educator Award from the Academy of Marketing Science, the 1992 American Marketing Association/Richard D. Irwin Distinguished Marketing Educator Award, and the 2002 Society for Marketing Advances/Elsevier Science Distinguished Scholar Award.

Essay from the year 2005 in the subject Business economics - Company formation, Business Plans, grade: A, University of Otago (Department of Management), course: Small Businesses, 31 entries in the bibliography, language: English, abstract: Franchising as a way of starting or operating a small business that is more likely to be successful than engaging in an independent small business. This was the predominant opinion during the last decades (Hoy, 1994). The common view towards franchising merits a closer look into situations franchising and non-franchising small businesses could face to finally answer the title-question of this essay "To what extend do you (do I) agree with the view that Franchising is the salvation of people starting and operating a small business?". To provide a sound answer the initial question requires some clarification. The basic notions of 'franchising' and 'small business' are defined and described in the first chapter. The second chapter, however, focuses on the person who starts or runs the small business, the entrepreneur or small business owner. The understanding of the entrepreneur's personality shall be enhanced by asking several questions. What kinds of decisions do self-employed people have to make, what are the threats they are confronted with and what determinates their failure and success? What might be the reasons for entrepreneurial behaviour and how might small business people feel running or starting the business? Moreover, what could the term 'salvation' mean to these people, and how could 'salvation' be interpreted? The third part of this essay combines the insights of the previous chapters by displaying the framing conditions that could induce the future small business person to start a franchise as first-time self-employment or the existing entrepreneur to give up an existing independent business in order to run a franchise. Whether franchising finally meets 'salvation', what kind of advantages and disadvantages franc