Does franchising help restaurant firm value?

Yoon Koh, Seoki Lee, Soyoung Boo

Research output: Contribution to journalArticle

55 Scopus citations

Abstract

A company's financial performance is of keen interest to many groups of people, including management, employees, shareholders, government, and so on. Although franchising has been one of the most common strategies to maximize a firm's financial performance in the restaurant industry, little research has been conducted regarding the relationship between the degree of franchising and the restaurant firm's financial performance. This study initially proposed a sigmoid relationship between the degree of franchising and the restaurant firm's financial performance based on the diversification theory. Findings, however, do not fully support the sigmoid relationship; rather a more quadratic or inverted U-shaped relationship was found.

Original languageEnglish (US)
Pages (from-to)289-296
Number of pages8
JournalInternational Journal of Hospitality Management
Volume28
Issue number2
DOIs
StatePublished - Jun 1 2009

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

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