Franchise fairs: A relevant signal in franchise choice in social activity

Potential franchisees encounter difficulties in gaining knowledge about a franchise before embarking on their first start-up venture. For this reason, it is necessary to research which information signals help potential franchisees choose the franchise chains with which they wish to enter into business. Working within the framework of signaling theory, this study's aim is to analyze the relationship between franchise choice and brand, price and participation in franchise fairs. The dynamic signaling model deployed to achieve the study's aim draws on panel data methodology. This methodology allows us to analyze franchise chains over the period in which their parent franchises were using sign…