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Uses comprehensive data on the geographical and industrydistribution of companyowned and franchised outlets in franchise chainsto test hypotheses on the ownership fror choice in US state markets.Comfirms the importance of geographical factors, associating companyownership with urbanization andor higher population densities, antherefore concluding that in these cases monitoring cost are lower.Concludes further that franchising supplement the financing of the chainand is particularly useful in achieving rapid growth.
Journal of Economic Studies – Emerald Publishing
Published: Apr 1, 1992
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