[fengwuhen]

Has anyone read:

The Economics of Franchising
by Roger D. Blair and Francine Lafontaine
Cambridge University Press © 2005

Any opinions on the book? I am trying to decide whether to invest the time in a thorough read. Often I read a book, underline it, cross reference it, and then find out that it truly was a waste of time but by then I have invested 25-40 hours in it.

One of the things that piqued my interest was this p***age:

(as this is in the U.S. I think I can quote this under "fair use" as it is for educational purposes)


Quote:

We now turn our attention to the extent of entry and exit by both franchisors and franchisees. There is a perception that opportunities for franchisors and franchisees are burgeoning. There is some truth to this as many new firms get involved in franchising each year. But there is also a perception that franchising is safe, especially for franchisees as compared to independent business start-ups. The data we present below show that, in reality, substantial business risks exist for individuals who choose to invest in a franchise. In fact, franchising is no safer on average than independent business ownership, and in some cases is actually more risky.
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We conclude that the data contradict the notion that investing in a franchised business is a risk-free or very low-risk endeavor.




I thought that Michael might have some comments on the sampling techniques and data analysis.

FuwaFuwaUsagi

[cilokara]

I accept with information: The Economics of Franchising
by Roger D. Blair and Francine Lafontaine
Cambridge University Press © 2005