The DOI matches its Crossref record.
Ownership Redirection in Franchised Channels
Abstract
Since the typical franchise arrangements permit the more powerful franchisors to simultaneously act as suppliers as well as competitors to their franchisees, apprehensions about potential opportunistic behaviors and allegations of antitrust violations are not uncommon. In turn, this unique structuring of franchises with dual distribution has drawn considerable scrutiny from the public policy platform. In particular, the ownership redirection hypothesis—that the powerful franchisors will reacquire the best franchised outlets relegating only the marginal units to franchisees—has received special attention because it verbalizes the worst fears associated with franchising. This paper provides an evaluation of this hypothesis. To do so, we examine (1) the key premises of the hypothesis from the perspectives of a number of related literatures and (2) the available empirical evidence on the hypothesis. Both aspects of the appraisal point to a number of unresolved issues with important public policy implications.
Overview
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
Claims other papers make about this one
Each is checked against this paper’s own text: does it say what the citing paper says it does?
In franchising systems with dual distribution, a comparison of franchisee performance to the performance of similar company-owned units could serve as an effective control device.
“In franchising systems with dual distribution (i.e., systems that simultaneously support both franchisee and company-owned units), a comparison of franchisee performance to the performance of similar company-owned units (and vice versa) could serve as an effective control device (Dant, Kaufmann, and Paswan 1992).”
From Control techniques and upward flow of information in franchising in distant markets: conceptualization and preliminary evidence (1998) · cites this paper as Dant, Kaufmann, and Paswan 1992
Since franchisees are chosen in part because of their superior knowledge of local market conditions, sharing this knowledge with the franchisor may be perceived as risky by franchisees.
“In addition, since franchisees are chosen in part because of their superior knowledge of the local market conditions (Dant, Kaufmann and Paswan 1992), sharing this wealth of knowledge with the franchisor may be perceived as risky by the franchisees.”
From Control techniques and upward flow of information in franchising in distant markets: conceptualization and preliminary evidence (1998) · cites this paper as Dant, Kaufmann and Paswan 1992
Citations
Cites
No references could be resolved yet.
Research works printed but not linked: 82
- 10.1016/0148-6195(84)90024-9 · DOI
- 10.1177/074391568600500108 · DOI
- Bohling William B., 1975, Texas Law Review, 53, 1180
- Bond Robert E., 1985, The Source Book of Franchise Opportunities
- 10.1146/annurev.so.15.080189.000525 · DOI · Paper page
- 10.1016/0304-405X(87)90046-8 · DOI · Paper page
- Brown Harold, 1971, Texas Law Review, 49, 650
- Brown Harold, 1973, Notre Dame Lawyer, 48, 1145
- California Statutes, 1980, California Franchise Relations Act
- 10.2307/1056250 · DOI · Paper page
- Dant Rajiv P., 1989, Marketing Theory and Practice, 187
- Dant Rajiv P., 1991, Franchising: Embracing the Future
- 10.1086/467037 · DOI
- 10.1086/467038 · DOI
- Federal Trade Commission, 1980, FTC Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures
- Fern Martin D., 1979, The Business Lawyer, 34, 1387
- Fern Martin D., 1981, The Business Lawyer, 36, 1041
- Fishwick Marshall, 1983, Ronald Revisited: The World of Ronald McDonald
- 10.1177/000276428002300304 · DOI
- Goldberg Victor P., 1979, Texas Law Review, 58, 91
- Glickman Gladys, 1991, Franchising
- Harrigan Kathryn Rudie, 1984, Academy of Management Journal, 9, 638
- 10.1177/002224298805200103 · DOI
- 10.1177/002224379002700103 · DOI
- Hewitt Charles M., 1973, The Business Lawyer, 29, 227
- House Committee on Small Business, 1990, Franchising in the U.S. Economy: Prospects and Problems
- House of Representatives, 1977, HR9144 of the 95th Congress
- House of Representatives, 1979, HR2305 of the 96th Congress
- Howard Marshall C., 1975, Journal of Small Business Management, 13, 21
- Horwitz Donald P., 1980, St. Johns Law Review, 54, 217
- 10.1177/002224297203600306 · DOI
- Hunt Shelby D., 1973, Franchising: Recent Trends, 110
- 10.1177/002224297503900305 · DOI
- Hunt Shelby D., 1976, Journal of Marketing, 53
- Hurwitz Ann, 1987, Antitrust Law Journal, 7, 3
- INFO, 1991, Franchise Annual
- Kaufmann Patrick J., 1987, Pizza Hut: Home Delivery
- Kaufmann Patrick J., 1988, Journal of Retailing, 64, 113
- 10.1086/467089 · DOI
- 10.3386/w3334 · DOI
- Lafontaine Francine, 1992, Franchising: Passport for Growth & World of Opportunity
- 10.2307/2555988 · DOI
- 10.1177/002224297604000409 · DOI
- Luxenberg Stan, 1985, Roadside Empires
- Marquardt Raymond A., 1986, Proceedings of the 1986 Conference of the Society of Franchising
- Martin Robert E., 1988, The American Economic Review, 78, 954
- 10.1007/978-1-349-18058-5_7 · DOI
- 10.1177/074391568700600109 · DOI
- Muris Timothy, 1981, Minnesota Law Review, 65, 521
- Nevin John R., 1980, MSU Business Topics, 27
- 10.1177/027614678100100107 · DOI
- 10.1177/056943459003400209 · DOI
- Nygaard Arne, 1990, Working Paper
- O'Hara Michael J., 1986, Proceedings of the 1986 Conference of the Society of Franchising
- 10.2307/2392231 · DOI · Paper page
- Oxenfeldt Alfred R., 1968, Journal of Retailing, 44, 69
- Ozanne Urban B., 1971, The Economic Effects of Franchising
- Padmanabhan K. H., 1988, Journal of Midwest Marketing, 3, 17
- Padmanabhan K. H., 1989, Proceedings of the 1989 Conference of the Society of Franchising
- 10.1086/466918 · DOI · Paper page
- 10.1177/074391568600500106 · DOI
- 10.1177/002224298504900407 · DOI
- Sheffet Mary Jane, 1986, Proceedings of the 1986 Conference of the Society of Franchising
- Shelton John P., 1967, American Economic Review, 57, 1252
- 10.1086/467010 · DOI
- Solomon Richard A., 1991, Franchise Law Journal, 10, 8
- Strasser Kurt A., 1986, Proceedings of the 1986 Conference of the Society of Franchising
- Strnad Patricia, 1988, Advertising Age, 32
- Sutherland M. Stuart, 1987, The Business Lawyer, 42, 369
- Trombetta William L., 1978, Atlanta Economic Review, 28
- U.S. Commerce Department, 1985, Franchising in the Economy 1985–1987
- U.S. Commerce Department, 1987, Statistical Abstract of the United States 1988
- U.S. Commerce Department, 1988, Franchising in the Economy 1988–1990
- Walker Bruce, 1988, Proceedings of the 1988 Conference of the Society of Franchising
- 10.2307/2393030 · DOI
- Wattel Harold, 1968, Journal of Retailing, 44, 54
- White H., 1985, Principals and Agents: The Structure of Business
- Williamson Oliver E., 1975, Markets and Hierarchies: Analysis and Anti-Trust Implications
- 10.1086/466942 · DOI · Paper page
- Wisconsin Statutes Annotated, 1987, Franchise Investment Law
- Zeidman Philip F., 1972, The Business Lawyer, 135
- 10.1111/j.1540-5915.1980.tb01125.x · DOI
Cited by
Sorted by citations
Blair, R. D., & Lafontaine, F. (2005) · doi:10.1017/cbo9780511753879 · Cited by 364
Dant, R. P., & Nasr, N. I. (1998) · Journal of Business Venturing · doi:10.1016/s0883-9026(97)00040-2 · Cited by 168
Self-citation
Metadata
- Authors
- Dant, R. P., Kaufmann, P. J., & Paswan, A. K.
- Affiliations
- Boston University (US)
- Georgia State University (US)
- University of Mississippi (US)
- ORCID
- Paswan, Audhesh K.
- Venue
- Journal of Public Policy & Marketing
- Publisher
- SAGE Publications
- Published
- 1992-03
- Volume
- 11
- Issue
- 1
- Pages
- 33-44
- ISSN
- 0743-9156 (ISSN-L)
- 1547-7207
- OpenAlex
- W51488276
- Cited by
- 129
- References
- 0
- Citations by year
- 2026: 1 · 2025: 2 · 2022: 3 · 2020: 3 · 2019: 4 · 2017: 6 · 2016: 4 · 2015: 5 · 2014: 3 · 2013: 5 · 2012: 3
- FWCI
- 11.03
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Public Policy & Marketing (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Franchising Strategies and Performance
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Merger and Competition Analysis
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategy and Innovation
- Keywords
- franchising, franchisors, franchisees, opportunism, competition law, dual distribution, public policy
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
