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The Economics of Franchising | 
 enlarge | Authors: Roger D. Blair, Francine Lafontaine
Publisher: Cambridge University Press
Category: Book
List Price: $50.00
Buy New: $36.00
You Save: $14.00 (28%)
New (9) Used (5) from $32.40
Avg. Customer Rating:  1 reviews
Sales Rank: 418299
Media: Hardcover
Number Of Items: 1
Pages: 350
Shipping Weight (lbs): 1.3
Dimensions (in): 9 x 6.2 x 0.9
ISBN: 0521772524
Dewey Decimal Number: 381.13
EAN: 9780521772525
ASIN: 0521772524
Publication Date: April 11, 2005
Availability: Usually ships in 24 hours
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Product Description
This 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.
Book Description
This 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 book includes a great deal of empirical evidence on franchising not available anywhere else.
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| Customer Reviews:
Valuable Tool for Franchisor Business Planning June 13, 2006
5 out of 5 found this review helpful
The U.S. Government quit collecting data on franchising in 1986. The franchise industry has, for the most part, done a poor job of collecting good data. Blair and Lafontaine collect the data, such as it is, which has been reliably produced on franchising since 1986 and reveal four prevalent myths in franchising. Data are available for all franchisors and are also segmented among industries.
This book will be helpful for the person in a new franchisor operation responsible for creating the economic model, i.e., the initial franchise fee, royalty fees and advertising fees. The book won't be much help without a background of college-level introductory macro- and microeconomics. A basic knowledge of calculus will enable you to follow the analyses but isn't critical to understanding the conclusions. The book also critically analyzes the economic issues which impact franchisor-franchisee tensions.
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