The organizational form of franchising has been shown to yield higher profits and faster growth through reducing agency costs. Why then does anyone not franchise? In this paper, I argue that the diffuse residual claims of the franchise system reduce overall system quality, and that this problem...

In addition to traditional corporations, today'sbusiness environment also includes hybrid organizations, such as joint ventures, strategic alliances, and franchise chains. The properties of each of these new organizational forms are the subject of considerable research and significant...