This paper develops a two-stage model to consider a franchise/franchisee environment in which supply chains are simultaneously entering the untapped market to produce either identical or highly substitutable products and give franchise to franchisees. Customer demand is elastic, price dependent and customer utility function is based on Huff gravity rule model. The supply chains, in the first st...

Consumers respond not only to the price and the product attributes, but also to the service effort provided by the seller. Empirically quantifying or measuring the service effort is difficult because it is often unobservable. This paper proposes an empirical framework of the role of service effort in demand, along with other traditional marketing mix instruments. The model allows us to measure ...

Purpose: As franchise brands have recently increased in the same industry and formal contracts been standardized, difference support, reputation, sales performance of franchisor has narrowed. a result, it become easier for franchisees to switch other industry, influence unique assets or trust level arising from relationship between headquarters on intention renew also decreased compared past. A...

There is limited knowledge on value co-creation in international franchising despite the collaborative nature of this major foreign entry mode. This article zooms franchisors' practices through in-depth interviews with 28 French franchisors and 25 their franchisees, offering three main contributions. First, reveal that do not always co-create franchisees. Instead, franchisor-franchisee co-depen...

Rooted in self-determination theory (SDT), this paper focuses on the relationship between a franchisee’s desire for autonomy and financial performance. The typical franchise requires system-wide conformity standardization. Yet, most franchisees are more than merely entrepreneurs with an instruction manual so they independence, addressing paradox of versus standardization represents major challe...

A franchise business is a contractual relationship in which the franchisor and franchisee should cooperate to promote sustainable growth of their entities. However, it still unclear whether between franchisees franchisors principal–agent or partner sharing goal. Thus, this study first attempt investigate franchises using metafrontier bootstrap DEA from perspective efficiency. We measured effici...

National advertising is an important ongoing marketing activity in a franchise arrangement. A majority of franchisors require franchisees to pay an advertising royalty as a percentage of gross revenues while some require franchisees to pay a fixed advertising fee. These payments are earmarked for national advertising. We investigate the relationship between the franchisor’s profits and the diff...

Franchisees within large branded chains loudly complain of a form of channel conflict known as “encroachment” or “impact.” Encroachment occurs when franchisors add new units of their brand proximately to their franchisees’ existing units. Franchisees claim that their revenues have substantially decreased as a result of encroaching same-brand entry. The topic of encroachment has not only dominat...