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franchising
Franchising is often touted as a safe route to business ownership in the service arena.
      
Yet findings by Bates (J Small Bus Manage 33(2):26-36, 1995) suggest that franchising may be a riskier alternative for prospective business owners than starting a non-franchised business.
      
A franchising contract relocates distributable rent between franchisor and franchisee.
      
Furthermore, a franchising contract shows a first mover advantage.
      
A franchising contract is placed before wage bargaining, benefiting the franchisor.
      
Modes of entry include: exporting (indirect or direct), contractual methods (licensing and franchising) and via direct foreign investment (joint ventures and wholly-owned subsidiaries).
      
Ethical implications of business format franchising
      
Franchising in the business format sector accounted for approximately 35 percent of retail sales in the U.S.
      
Consequently, the franchising industry has a clear ethical responsibility to the public.
      
The worldwide growth of franchising has been phenomenal during the past decade.
      
At the same time there has been increased media attention to questionable business practices in franchising.
      
Similar to some trade associations and professions, franchising has sought self-regulation by developing codes of conduct or ethics.
      
This study examines the codes of ethics covering franchising activities in 21 countries.
      
Specifically, the codes cover most stages of the franchising relationship, focus on a narrow set of stakeholders, are short on ethical guidance, and offer few enforcement provisions.
      
The implications of these findings for international franchising and research are discussed.
      
Quality assurance for higher education franchising
      
Although institutional rationales for franchising vary, the quality assurance of franchise operations can be conducted under a general set of principles.
      
Suchpartnerships, also assumed under the rubric of 'transnational education' and 'franchising', add additional challenges, complexities and risks to the roles of international education managers and administrators.
      
Licensing production, in the form of franchising degree provision to international partners, is beginning to mutate into foreign direct investment as many universities set up campuses in other countries.
      
The Russian Civil Code: Will it Boost or Bust Franchising in Russia
      
 

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