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Maintaining Quality Standards in Franchise Chains
Abstract
In the present paper we identify those characteristics of the markets served by a franchise chain which determine the relative incentives of the owner of the chain to monitor the behavior of individual franchisees. We find that the owner has greater incentives to monitor the outlets that serve the relatively smaller markets and those that are subject to greater fluctuations in the state of the demand confronting them. We also find that the extent of competition with other chains has an ambiguous effect on the incentives to monitor the franchisees:
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“However, the effects of competition on the relationship within franchising dyads have almost never been studied (but for a notable exception, see Gal-Or 1995).”
From Control techniques and upward flow of information in franchising in distant markets: conceptualization and preliminary evidence (1998) · cites this paper as Gal-Or 1995
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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
Metadata
- Authors
- Gal-Or, E.
- Affiliations
- The Joseph M. Katz Graduate School of Business, 210 Mervis Hall, University of Pittsburgh, Pittsburgh, Pennsylvania 15260
- Venue
- Management Science
- Published
- 1995-11
- Volume
- 41
- Issue
- 11
- Pages
- 1774-1792
- ISSN
- 0025-1909 (ISSN-L)
- 1526-5501
- OpenAlex
- W1968755215
- Cited by
- 57
- References
- 0
- Citations by year
- 2025: 2 · 2023: 1 · 2021: 1 · 2019: 2 · 2018: 1 · 2016: 3 · 2014: 1 · 2013: 4 · 2012: 3
- FWCI
- 8.89
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Management Science (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 › Decision Sciences › Management Science and Operations Research › Supply Chain and Inventory Management
- Keywords
- franchise chains, quality standards, market size, demand variability
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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.
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Cite CoChat for the checks on this page, and the paper for its own findings.
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- CoChat. (2026). Citation check: Maintaining Quality Standards in Franchise Chains. https://app.cochat.ai/papers/10.1287/mnsc.41.11.1774
- The paper
- Gal-Or, E. (1995). Maintaining Quality Standards in Franchise Chains. Management Science. https://doi.org/10.1287/mnsc.41.11.1774
