A Study of the Effect of Transactional Costs on Franchising Viability

Author

Nawapun Surathin, Fontbonne College

Year of Award

1995

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business Administration

Department

Business Administration

Keywords

brand, business, food, company-owned

Abstract

This study intends to analyze the effect of transactional costs on franchising viability. The main hypothesis is that transaction cost minimization is the important determinant of a firm's decision to franchise. The study found that most of the franchise operations in Thailand are foreign franchises from the United States of America, the home of modern franchising. The major sector is the fast food business. Thai businessmen began to grant franchise rights in 1982. At present, there are about twenty local franchisers who have already granted franchise rights in Thailand and abroad. Local franchise opportunities are increasing and this shows a trend is developing. The success or failure of the business is best indicated by the growth of the franchised outlet. Moreover, the selection of suitable franchises for the particular business is also important. The franchisee's ability to derive finely tuned local information to suit the local market without deteriorating quality standards is the essential franchisee's role for success.

Document Type

Restricted Thesis

Recommended Citation

Surathin, Nawapun, "A Study of the Effect of Transactional Costs on Franchising Viability" (1995). All Theses, Dissertations, and Capstone Projects. 216.
https://griffinshare.fontbonne.edu/all-etds/216