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RESEARCH PRODUCT
Analysis of efficiency and profitability of franchise services
Constantino José García MartínAmparo Medal-bartualMarta Peris-ortizsubject
PerformanceStrategy and ManagementEfficiencyProfit (economics)Super efficiencyEfficiencyManagement of Technology and InnovationORGANIZACION DE EMPRESASEconomicsSuper-efficiencyProfitabilityProfitability indexFranchiseFranchisesMarketingIndustrial organizationdescription
The present study analyses the relative efficiency of franchise services and characterises the best companies, confirming the relationship between efficiency and profit. These companies are from the trade and other services sector , the main group of service-providing companies in the Spanish economy. The methodology calls for first comparing the relative efficiency of franchisers and ownership enterprises. Second, the focus turns to the most efficient franchise services, using a super-efficiency model to rank them. The paper then goes on to cover the analysis of the main characteristics of the best franchise enterprises, the number of own establishments in a franchise business and the profitability of the company. This paper presents arguments as to why companies from the trade and other services sector are included. The main conclusion is that, whilst the number of establishments is irrelevant in achieving greater efficiency, many of the most efficient enterprises have high returns.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2014-05-12 | The Service Industries Journal |