Title |
Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure |
ID_Doc |
73383 |
Authors |
Calderon-Monge, E; Pastor-Sanz, I; Huerta-Zavala, P |
Title |
Economic Sustainability in Franchising: A Model to Predict Franchisor Success or Failure |
Year |
2017 |
Published |
Sustainability, 9, 8 |
DOI |
10.3390/su9081419 |
Abstract |
As a business model, franchising makes a major contribution to gross domestic product (GDP). A model that predicts franchisor success or failure is therefore necessary to ensure economic sustainability. In this study, such a model was developed by applying Lasso regression to a sample of franchises operating between 2002 and 2013. For franchises with the highest likelihood of survival, the franchise fees and the ratio of company-owned to franchised outlets were suited to the age of the franchise. Surviving franchises were those that opened franchised outlets at a sustainable pace, increased the franchise fee as intangible assets increased, and effectively managed profitability and efficiency. |
Author Keywords |
franchise; survival; economic sustainability; Lasso regression model; Spain |
Index Keywords |
Index Keywords |
Document Type |
Other |
Open Access |
Open Access |
Source |
Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI) |
EID |
WOS:000408861800134 |
WoS Category |
Green & Sustainable Science & Technology; Environmental Sciences; Environmental Studies |
Research Area |
Science & Technology - Other Topics; Environmental Sciences & Ecology |
PDF |
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