Franchisee net income: a signal to choose a franchise in a period of crisis

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María Esther Calderon Monge
Pilar Angelica Huerta

Abstract

This paper adopts the perspective of Theory of Signals to discuss how someone starting a business as a franchisee for the first time can choose a suitable franchise brand. The aim was to analyze the relationship between certain signals sent by the franchisor and the choice of a franchise brand by the prospective franchisee. Using panel data, we found that the effects of macroeconomic variables in Spain for the 2006-2013 crisis period influenced franchisees’ net income, which thus became a relevant signal in their process of choosing a franchise brand to start a business

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How to Cite
CALDERON MONGE, M. E.; HUERTA, P. A. Franchisee net income: a signal to choose a franchise in a period of crisis. RAE - Revista de Administracao de Empresas , [S. l.], v. 55, n. 6, p. 688–698, 2015. Disponível em: https://periodicos.fgv.br/rae/article/view/57583. Acesso em: 12 apr. 2024.
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