Incomplete contracts and the choice between vertical integration and franchising

Article Abstract:

Incomplete contracts influence the organizational structure of companies since their failure to contract over local outlet expenditures can influence their decision to integrate or franchise. The ownership of the local outlet needs to be given to the party possessing the greatest capability to control costs because incentives to minimize costs are being held solely by the owners.

Organizational Methods NEC, Models, Organizational change, Vertical integration, Organization

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The extent, motivation, and effect of tying in franchise contracts

Article Abstract:

Research into the extent of tying in franchise contracts among restaurant franchisors is presented. Use of the tie is negatively affected by local advertising spending and positively affected by equipment needed.

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The effect of organizational form on quality: the case of franchising

Article Abstract:

Research is presented concerning the influence of organizational form on the quality of service, growth of the business and level of profitability of franchises in the hotel and restaurant industries.

Analysis, Organizational research

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