Most of the existing empirical literature on franchising investigates the share of company-owned versus franchised establishments within large retail firms. This literature ignores a third organizational option: establishments may be operated as unaffiliated, independently owned businesses. This...

Most of the existing empirical literature on franchising investigates the share of company-owned versus franchised establishments within large retail firms. This literature typically has not considered the decision of a business owner to operate an independent business or to become a franchisee....