To Franchise or Not to Franchise?

Abstract

Franchising, as a popular form of entrepreneurship, continues to be increasingly accepted throughout the world. However, due to many frauds and failures in the past, franchise laws have been established to ensure full disclosure on the part of the franchisor to all prospective franchisees. Surveys 101 companies and their disclosure documents, to ascertain how they operated their business and the extent to which they complied with the disclosure regulations. It was evident that the disclosure rules provided increased knowledge for prospective franchisees, although not all franchisors adhered to the spirit and letter of the law.

Citation

Chan, P.S. and Justis, R.T. (1993), "To Franchise or Not to Franchise?", Management Decision, Vol. 31 No. 5. https://doi.org/10.1108/00251749310041788