Lee, DongJoon; Choi, YongHoon; Han, SangHeon - In: Economics Bulletin 32 (2012) 4, pp. 35-35
This paper studies the two royalty structures: Sales-based Royalty (=SBR) and Margin-based Royalty (=MBR). From the standpoint of a franchisor, if it is necessary for a franchisee to engage in a marketing activity, the SBR grants a more high-powered incentive scheme to the franchisee than the...