Journal of Corporate Finance Vol. 2 No. 1-2 1995
Is franchising a capital structure issue?
Abstract
This paper reviews recent research on franchising and capital structure. Several key variables that affect capital costs and are common to franchised businesses are identified. The question whether or not franchising exists because franchisees provide capital that has no close substitutes for pioneering entrepreneurs is explored and criticized because alternatives to franchisees' funds are readily available and not used by franchisers. The role of franchisee financing is also examined as a key feature of capital structure in these types of industries.
- DOI
- 10.1016/0929-1199(95)00005-s
- Volume
- 2
- Issue
- 1-2
- Pages
- 75-101
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref