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Reasons for the expansion in franchising: is it all said?

2012; Taylor & Francis; Volume: 32; Issue: 6 Linguagem: Inglês

10.1080/02642069.2010.550041

1743-9507

Francisco Javier Rondán Cataluña, Antonio Navarro García, Enrique Carlos Diez-De Castro, Carlos Javier Rodríguez Rad,

Merger and Competition Analysis

Abstract The main aim of this work consists of studying and analysing the reasons that drive firms to expand by means of the franchise route. A methodology based on latent class regression has been used, in order to explain the number of franchised units from a set of variables related to the adhesion costs, growth, and internationalization of the franchising chain. Two main conclusions are extracted from the results. On the one hand, the selected variables turn out to be suitable to explain the reasons that impulse companies to expand in franchising versus the development of owned units strategy. On the other hand, different profiles or types of franchisors exist according to the type of expansion chosen. Keywords: franchisinglatent class regressioninternationalizationgrowth Acknowledgement We would like to thank Manel Casabó (Head of Franchisa consulting) for his support and for providing us with a worthy database. Notes 5% level of significance.