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Franchise Sistemlerinde Strateji ve Sözleşme Dinamikleri: İspanya Gıda ve İçecek Sektörü Üzerine Bir Analiz

Year 2021, Volume: 3 Issue: 3, 243 - 262, 31.12.2021
https://doi.org/10.38009/ekimad.999517

Abstract

Bu çalışma, işlem maliyeti teorisi ve vekalet teorisi argümanlarını dikkate alarak, franchising sisteminin stratejik ve sözleşme dinamiklerini ele almayı amaçlamaktadır. Guia de Franquicias yayınından yararlanılarak elde edilen 2021 yılı İspanyol yiyecek ve içecek franchise sistemlerinin verisetine ilişkin havuzlanmış kesit verileri kullanılmış; ilk olarak franchise veren şirketlerin yaşının ve sistem büyüklüğünün verilen franchise oranı üzerindeki etkisine ilişkin keşif analizi uygulanmıştır. Sonrasında, franchise sistemlerinin yaş, sistem büyüklüğü, menşe ülkesi ve franchise verilen birimlerin oranı gibi karakteristiklerinin bir franchising sözleşmesinin finansal etmenleri – ilk yatırım bedeli, franchise bedeli, ciro payı, reklam payı – üzerindeki etkileri analiz edilmiştir. Verilen franchise birimleri oranının, hem yaş hem de sistem büyüklüğü karakteristikleriyle korelasyonunun ters-U şeklinde olduğu bulunmuştur. Son olarak, çoklu regresyon yöntemi uygulanmasıyla yaş, sistem büyüklüğü, menşe ülkesi ve franchise verilen birimlerin oranı karakteristiklerinin sistem büyüklüğü harici her birinin franchise bedeli ve reklam payı üzerinde rol oynadığı, ancak ilk yatırım bedeli ve ciro payı üzerinde etkisi olmadığı gösterilmiştir.

References

  • Alon, I. (2001). The Use of Franchising by U.S.-based Retailers. Journal of Small Business Management, 39, 111-122.
  • Altinay, L. (2006). Selecting Partners in an International Franchise Organization. International Journal of Hospitality Management, 25, 108-128.
  • Andrew, W.D., Damitio, J.W., Schmidgall, R.S., (2007). Financial Management for the Hospitality Industry. New Jersey: Pearson Prentice Hall.
  • Bai, C. & Tao, Z. (2001). Contract Mix in Franchising. Journal of Economics and Management Strategy, 9, 85-113.
  • Berkovitz, J. (1999). An Analysis of Contract Provisions in Business Format Franchise Agreements: In John Stanworth, David Purdy (eds.), Proceedings of the 13th Conference of the International Society of Franchising.
  • Bradach, J.L. (1997). Using the Plural Form in the Management of Restaurant Chains. Administrative Science Quarterly, 42, 276-303. Brickley, J.A., & Dark, F.H. (1987). The Choice of Organizational Form: The Case of Franchising. Journal of Financial Economics, 18, 401-420.
  • Brickley, J., Dark, F., & Weisbach, M. (1991). An Agency Perspective on Franchising. Financial Management, 20, 27-35.
  • Carney, M., & Gedajlovic, E. (1991). Vertical Integration in Franchise Systems: Agency Theory and Resource Explanations. Strategic Management Journal, 12(8), 607-629.
  • Caves, R.E., & Murphy, W.F. (1976). Franchising: Firms, Markets and Intangible Assets. Southern Economic Journal, 42(April), 572-586. Coase, R. (1937). The Nature of the Firm. Economica, November, 386-405.
  • Combs, J.G., and Castrogiovanni G.J. (1994). Franchisor Strategy: A Proposed Model and Empirical Rest of Franchise versus Company Ownership. Journal of Small Business Management, 32(2), 37-48.
  • Combs, J.G., & Ketchen, D.J. (1999). Can Capital Scarcity Help Agency Theory Explain Franchising? A Test of the Capital Scarcity Hypothesis. Academy of Management Journal, 42, 196-207.
  • Combs, J.G., Michael, S.C., Castrogiovanni, G.J. (2004). Franchising: A Review and Avenues to Greater Theoretical Diversity. Journal of Management 30, 907-931.
  • Dahlstrom, R., & Nygaard, A. (1999). An Empirical Investigation of Ex Post Transaction Costs in Franchised Distribution Channel. Journal of Marketing Research, 36, 160-170.
  • Dahlstrom, R., Manolis, A., & Nygaard, A. (1995). A Preliminary Investigation of Ownership Conversions in Franchised Distribution Systems. Journal of Applied Business Research, 11(2), 1-8.
  • Dnes, A.W. (1996). The Economic Analysis of Franchise Contracts. Journal of Institutional and Theoretical Economics, 152, 297-324. Eisenhardt, K. (1989). Agency Theory: An Assessment and Review. Academy of Management Review, 14(1), 57-74.
  • Elango, B., & Freid, V.H. (1997). Franchising Research: A Literature Review and Synthesis. Journal of Small Business Management, 35, 68-81.
  • Gallini, N., & Lutz, N. (1992). Dual Distribution and Royalty Fees in Franchising. Journal of Law, Economics, and Organization, 19, 265-284.
  • Guia de Franquicias 2021. (2021, July 1). Retrieved from: www.emprendedores.es
  • Harrigan, K.R. (1984). Formulating Vertical Integration Strategies. Academy of Management Journal, 9, 638-652. International Franchise Association. (2021, August 16). Retrieved from: www.franchise.org
  • Jensen, M., & Meckling, W. (1976). Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3, 305-360.
  • Kaufmann, P.J., & Rangan, V.K. (1990). A Model for Managing System Conflict during Franchise Expansion. Journal of Retailing, 66(2), 155-173.
  • Klein, B. (1980). Transaction Cost Determinants of ‘Unfair’ Contractual Arrangements. American Economic Review, 70, 356-362.
  • Klein, B. (1995). The Economics of Franchise Contracts. Journal of Corporate Finance, 2, 9-37.
  • Klein, B., Crawford, R., & Alchian, A. (1978). Vertical Integration, Appropriable Rents and the Competitive Contracting Process. Journal of Law and Economics, 21, 297-326.
  • Lafontaine, F. (1991). How and Why Franchisors Do What They Do: A Survey Report. In P. Kaufmann (Ed.), Franchising: Passport for Growth and Worm of Opportunism. Proceedings of the 6th Conference of the Society of Franchising.
  • Lafontaine, F. (1992). Agency Theory and Franchising: Some Empirical Results. Rand Journal of Economics, 23(Summer), 263-283.
  • Lafontaine, F. (1995). A Critical Appraisal of Data Sources on Franchising. Journal of Marketing Channels, 4(1/2), 5-25.
  • Lafontaine, F., & Kaufmann, P. (1994). The Evolution of Ownership Patterns in Franchise Systems. Journal of Retailing, 70(2), 97-113.
  • Lafontaine, F., & Shaw, K.L. (2005). Targeting Managerial Control: Evidence from Franchising, RAND Journal of Economics. 36, 131-150.
  • Lafontaine, F., & Slade, M.E. (1997). Retail Contracting: Theory and Practice. The Journal of Industrial Economics, 45, 1-25.
  • Levinthal, D. (1998). A Survey of Agency Models of Organization. Journal of Economic Behavior and Organization, 9, 153-185.
  • Michael, S.C. (2003). Determinants of Franchising Across Nations. Management International Review, 43. 267-290.
  • Minkler, A. P., & Park, T. A. (1994). Asset Specificity and Vertical Integration. Review of Industrial Organization, 9. 409-423.
  • Morrison, A., & Macmillan, A. (2000). Financial Fundamentals. Franchising Hospitality Services. Boston: Butterworth-Heinemann.
  • Norton, S. W. (1988a). Franchising, Brand Name Capital, and Entrepreneurial Capacity Problem. Strategic Management Journal, 9, 105-114.
  • Norton, S. W. (1988b). An Empirical Look at Franchising as an Organizational Form. Journal of Business, 61, 197-218.
  • Oxenfeldt, A. R., & Kelly, A. O. (1968). Will Successful Franchise Systems Ultimately Become Wholly-owned Chains? Journal of Retailing, 44(Winter), 69-83.
  • Prendergast, C. (2002). The Tenuous Trade-Off between Risk and Incentives. Journal of Political Economy, 110, 1071-1102.
  • Roh, Y.S., & Kwag, H.M. (1997). The Ownership Structure of Property Rights: Theory and Empirical Evidence of Restaurant Franchising. Journal of Hospitality and Tourism Research, 21(2), 75-85.
  • Rubin, P. H. (1978). The Theory of the Firm and the Structure of the Franchise Contract. Journal of Law and Economics, 21, 223-234.
  • Scott, F. A. (1995). Franchising versus Company Ownership as a Decision Variable of the Firm. Review of Industrial Organization, 10, 69-81.
  • Sen, K. (1997). The Use of Franchising as a Growth Strategy by U.S. Restaurant Franchisors. Paper presented at the 11th Annual Society of Franchising Conference, Orlando, Florida.
  • Shane, S. (1998). Explaining the Distribution of Franchised and Company-Owned Outlets in Franchise Systems. Journal of Management, 24, 717-739.
  • Shane, S. A. (2005). From Ice Cream to the Internet: Using Franchising to Drive the Growth and Profits of Your Company. New Jersey: Prentice Hall.
  • Shane, S. A., & Hoy, F. (1996). Franchising: A Gateway to Cooperative Entrepreneurship. Journal of Business Venturing, 11(5), 325-327.
  • Williamson, O. E. (1985). The Economic Institution of Capitalism. New York: Free Press.

Strategic and Contractual Dynamics in Franchise Systems: An Analysis on Spanish Food and Beverage Industry

Year 2021, Volume: 3 Issue: 3, 243 - 262, 31.12.2021
https://doi.org/10.38009/ekimad.999517

Abstract

This study aims to address strategic and contractual dynamics of franchising, in consideration of arguments of transaction cost theory and agency theory. By using pooled cross-sectional data on a sample of Spanish food and beverage franchise systems of year 2021, gathered from Guia de Franquicias manual, exploratory analyses on the effect of franchisors’ age and total size on their proportion of franchised units are conducted as a first step. Furthermore, the effects of characteristics of a franchise system - its age, total size, origin country and proportion of franchised units, on its franchising contract’s financial determinants – level of initial investment, entry fee, royalty rate and advertising rate, are hypothesized and analyzed. Proportion of franchised units’ correlations with both age and total size characteristics are found to be inverse U-shaped. By applying multiple regression method, it is shown that none of franchising characteristics, age, total size, being foreign and its proportion of franchised units, play a significant role on level of entry fees and royalty rates, but their effects on initial investment level and advertising rates are significant, except total size.

References

  • Alon, I. (2001). The Use of Franchising by U.S.-based Retailers. Journal of Small Business Management, 39, 111-122.
  • Altinay, L. (2006). Selecting Partners in an International Franchise Organization. International Journal of Hospitality Management, 25, 108-128.
  • Andrew, W.D., Damitio, J.W., Schmidgall, R.S., (2007). Financial Management for the Hospitality Industry. New Jersey: Pearson Prentice Hall.
  • Bai, C. & Tao, Z. (2001). Contract Mix in Franchising. Journal of Economics and Management Strategy, 9, 85-113.
  • Berkovitz, J. (1999). An Analysis of Contract Provisions in Business Format Franchise Agreements: In John Stanworth, David Purdy (eds.), Proceedings of the 13th Conference of the International Society of Franchising.
  • Bradach, J.L. (1997). Using the Plural Form in the Management of Restaurant Chains. Administrative Science Quarterly, 42, 276-303. Brickley, J.A., & Dark, F.H. (1987). The Choice of Organizational Form: The Case of Franchising. Journal of Financial Economics, 18, 401-420.
  • Brickley, J., Dark, F., & Weisbach, M. (1991). An Agency Perspective on Franchising. Financial Management, 20, 27-35.
  • Carney, M., & Gedajlovic, E. (1991). Vertical Integration in Franchise Systems: Agency Theory and Resource Explanations. Strategic Management Journal, 12(8), 607-629.
  • Caves, R.E., & Murphy, W.F. (1976). Franchising: Firms, Markets and Intangible Assets. Southern Economic Journal, 42(April), 572-586. Coase, R. (1937). The Nature of the Firm. Economica, November, 386-405.
  • Combs, J.G., and Castrogiovanni G.J. (1994). Franchisor Strategy: A Proposed Model and Empirical Rest of Franchise versus Company Ownership. Journal of Small Business Management, 32(2), 37-48.
  • Combs, J.G., & Ketchen, D.J. (1999). Can Capital Scarcity Help Agency Theory Explain Franchising? A Test of the Capital Scarcity Hypothesis. Academy of Management Journal, 42, 196-207.
  • Combs, J.G., Michael, S.C., Castrogiovanni, G.J. (2004). Franchising: A Review and Avenues to Greater Theoretical Diversity. Journal of Management 30, 907-931.
  • Dahlstrom, R., & Nygaard, A. (1999). An Empirical Investigation of Ex Post Transaction Costs in Franchised Distribution Channel. Journal of Marketing Research, 36, 160-170.
  • Dahlstrom, R., Manolis, A., & Nygaard, A. (1995). A Preliminary Investigation of Ownership Conversions in Franchised Distribution Systems. Journal of Applied Business Research, 11(2), 1-8.
  • Dnes, A.W. (1996). The Economic Analysis of Franchise Contracts. Journal of Institutional and Theoretical Economics, 152, 297-324. Eisenhardt, K. (1989). Agency Theory: An Assessment and Review. Academy of Management Review, 14(1), 57-74.
  • Elango, B., & Freid, V.H. (1997). Franchising Research: A Literature Review and Synthesis. Journal of Small Business Management, 35, 68-81.
  • Gallini, N., & Lutz, N. (1992). Dual Distribution and Royalty Fees in Franchising. Journal of Law, Economics, and Organization, 19, 265-284.
  • Guia de Franquicias 2021. (2021, July 1). Retrieved from: www.emprendedores.es
  • Harrigan, K.R. (1984). Formulating Vertical Integration Strategies. Academy of Management Journal, 9, 638-652. International Franchise Association. (2021, August 16). Retrieved from: www.franchise.org
  • Jensen, M., & Meckling, W. (1976). Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3, 305-360.
  • Kaufmann, P.J., & Rangan, V.K. (1990). A Model for Managing System Conflict during Franchise Expansion. Journal of Retailing, 66(2), 155-173.
  • Klein, B. (1980). Transaction Cost Determinants of ‘Unfair’ Contractual Arrangements. American Economic Review, 70, 356-362.
  • Klein, B. (1995). The Economics of Franchise Contracts. Journal of Corporate Finance, 2, 9-37.
  • Klein, B., Crawford, R., & Alchian, A. (1978). Vertical Integration, Appropriable Rents and the Competitive Contracting Process. Journal of Law and Economics, 21, 297-326.
  • Lafontaine, F. (1991). How and Why Franchisors Do What They Do: A Survey Report. In P. Kaufmann (Ed.), Franchising: Passport for Growth and Worm of Opportunism. Proceedings of the 6th Conference of the Society of Franchising.
  • Lafontaine, F. (1992). Agency Theory and Franchising: Some Empirical Results. Rand Journal of Economics, 23(Summer), 263-283.
  • Lafontaine, F. (1995). A Critical Appraisal of Data Sources on Franchising. Journal of Marketing Channels, 4(1/2), 5-25.
  • Lafontaine, F., & Kaufmann, P. (1994). The Evolution of Ownership Patterns in Franchise Systems. Journal of Retailing, 70(2), 97-113.
  • Lafontaine, F., & Shaw, K.L. (2005). Targeting Managerial Control: Evidence from Franchising, RAND Journal of Economics. 36, 131-150.
  • Lafontaine, F., & Slade, M.E. (1997). Retail Contracting: Theory and Practice. The Journal of Industrial Economics, 45, 1-25.
  • Levinthal, D. (1998). A Survey of Agency Models of Organization. Journal of Economic Behavior and Organization, 9, 153-185.
  • Michael, S.C. (2003). Determinants of Franchising Across Nations. Management International Review, 43. 267-290.
  • Minkler, A. P., & Park, T. A. (1994). Asset Specificity and Vertical Integration. Review of Industrial Organization, 9. 409-423.
  • Morrison, A., & Macmillan, A. (2000). Financial Fundamentals. Franchising Hospitality Services. Boston: Butterworth-Heinemann.
  • Norton, S. W. (1988a). Franchising, Brand Name Capital, and Entrepreneurial Capacity Problem. Strategic Management Journal, 9, 105-114.
  • Norton, S. W. (1988b). An Empirical Look at Franchising as an Organizational Form. Journal of Business, 61, 197-218.
  • Oxenfeldt, A. R., & Kelly, A. O. (1968). Will Successful Franchise Systems Ultimately Become Wholly-owned Chains? Journal of Retailing, 44(Winter), 69-83.
  • Prendergast, C. (2002). The Tenuous Trade-Off between Risk and Incentives. Journal of Political Economy, 110, 1071-1102.
  • Roh, Y.S., & Kwag, H.M. (1997). The Ownership Structure of Property Rights: Theory and Empirical Evidence of Restaurant Franchising. Journal of Hospitality and Tourism Research, 21(2), 75-85.
  • Rubin, P. H. (1978). The Theory of the Firm and the Structure of the Franchise Contract. Journal of Law and Economics, 21, 223-234.
  • Scott, F. A. (1995). Franchising versus Company Ownership as a Decision Variable of the Firm. Review of Industrial Organization, 10, 69-81.
  • Sen, K. (1997). The Use of Franchising as a Growth Strategy by U.S. Restaurant Franchisors. Paper presented at the 11th Annual Society of Franchising Conference, Orlando, Florida.
  • Shane, S. (1998). Explaining the Distribution of Franchised and Company-Owned Outlets in Franchise Systems. Journal of Management, 24, 717-739.
  • Shane, S. A. (2005). From Ice Cream to the Internet: Using Franchising to Drive the Growth and Profits of Your Company. New Jersey: Prentice Hall.
  • Shane, S. A., & Hoy, F. (1996). Franchising: A Gateway to Cooperative Entrepreneurship. Journal of Business Venturing, 11(5), 325-327.
  • Williamson, O. E. (1985). The Economic Institution of Capitalism. New York: Free Press.
There are 46 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Articles
Authors

Ahmet Rutkay Ardoğan 0000-0003-4936-0691

Publication Date December 31, 2021
Submission Date September 23, 2021
Published in Issue Year 2021 Volume: 3 Issue: 3

Cite

APA Ardoğan, A. R. (2021). Strategic and Contractual Dynamics in Franchise Systems: An Analysis on Spanish Food and Beverage Industry. Ekonomi İşletme Ve Maliye Araştırmaları Dergisi, 3(3), 243-262. https://doi.org/10.38009/ekimad.999517