Much has been written about franchising in economics over the last two decades: researchers have gained important insights, especially into how and why it works and into the reasons behind the various forms of vertical restraints usually embedded in these contracts. This authoritative volume presents the key papers that have introduced the theoretical frameworks and the empirical facts that have spurred the interest of scholars in franchising as an organizational form. By combining all these contributions in a single volume, this collection not only highlights the main questions that have been addressed in the literature on franchising, but also illustrates the important role that incentive issues have played in it. As a result, this compilation should be of special interest to economists and management scholars with an interest in franchising but also to those interested in general issues concerning the organization of the firm. It includes 26 articles, dating from 1967 to 2005.

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.

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.