Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure
AbstractAs a business model, franchising makes a major contribution to gross domestic product (GDP). A model that predicts franchisor success or failure is therefore necessary to ensure economic sustainability. In this study, such a model was developed by applying Lasso regression to a sample of franchises operating between 2002 and 2013. For franchises with the highest likelihood of survival, the franchise fees and the ratio of company-owned to franchised outlets were suited to the age of the franchise. Surviving franchises were those that opened franchised outlets at a sustainable pace, increased the franchise fee as intangible assets increased, and effectively managed profitability and efficiency. View Full-Text
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Calderon-Monge, E.; Pastor-Sanz, I.; Huerta-Zavala, P. Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure. Sustainability 2017, 9, 1419.
Calderon-Monge E, Pastor-Sanz I, Huerta-Zavala P. Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure. Sustainability. 2017; 9(8):1419.Chicago/Turabian Style
Calderon-Monge, Esther; Pastor-Sanz, Ivan; Huerta-Zavala, Pilar. 2017. "Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure." Sustainability 9, no. 8: 1419.
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