This paper provides evidence on the determinants of royalties and upfront fees in share contracts by examining how state franchise termination laws affect franchise contracts. The results are consistent with the joint hypothesis that the two-sided moral hazard model explains the terms in...

Evaluates the agency problems associated with company owned versus franchised units in order to determine whether these agency considerations affect the own/franchise decision. Information on the ownership characteristics of franchise firms were gathered from 112 responses to queries sent to...