Franchisee Associations as Sources of Bargaining Power? Some Evidence Journal Article uri icon

Overview

abstract

  • The empirical literature in economics and strategy on contract structure, including on franchise contract structure, has been largely based on agency and transaction cost theories. The effects of bargaining power have been much less studied. This paper considers the role of independent franchisee associations in franchising relationships as a means to test for the presence of bargaining power effects. We find that the presence or absence of a franchisee association is significantly related to each of three key contractual and relationship characteristics: contract duration, noncompete stringency, and terminations/nonrenewals. This suggests that bargaining power should be accounted for in studies of contract structure and relationship outcomes.

publication date

  • October 1, 2015

has restriction

  • closed

Date in CU Experts

  • January 12, 2018 7:21 AM

Full Author List

  • Argyres N; Bercovitz J

author count

  • 2

Other Profiles

International Standard Serial Number (ISSN)

  • 1058-6407

Electronic International Standard Serial Number (EISSN)

  • 1530-9134

Additional Document Info

start page

  • 811

end page

  • 832

volume

  • 24

issue

  • 4