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| Tekijä: | Lafontaine, F. Oxley, J.E. |
| Otsikko: | International franchising practices in Mexico: Do franchisors customize their contracts? |
| Lehti: | Journal of Economics & Management Strategy
2004 : SPRING, VOL. 13:1, p. 95-123 |
| Asiasana: | Franchising Marketing channels International trade Foreign investment Latin America North America |
| Kieli: | eng |
| Tiivistelmä: | The contracting practices of franchisors (hereafter as: fr. / frs.) outside their domestic market have received little attention in the empirical literature on franchising (here as: f-ing). This paper exploits a novel data set allowing to describe the contracts offered by a number of U.S. and Canadian frs. operating in Mexico and also to compare them to contracts employed at home. The analyses reveal a series of stylized facts: 1. The overwhelming majority of frs. seeking franchisees in Mexico offer exactly the same contract to potential Mexican franchisees as that employed in the home market, 2. Among those frs. having already established outlets in Mexico, nearly half use the exact same fees in Mexico and at home, 3. The majority of those frs. that make changes only alter the fixed fee component of the contract, 4. There is no evidence that frs. use f-ing more or less in Mexico compared to home as an alternative to royalty rate customization-in fact, the extent of f-ing (vs. company-owned units) of these firms in Mexico is not different systematically from that observed in their domestic market or worldwide, and 5. There is no evidence of increased customization over time-if anything, the evidence suggests increased similarities in contracting practices over time. |
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