In franchising, playing tough early may support long-term benefits
May 13, 2022
by Iowa State University
From McDonalds to Marriott, 7-Eleven to Ace Hardware, we're surrounded by franchises. They are the dominant retail model in the U.S., and underpinning their success are franchisors who grow a network of franchisees who use their own resources to open and run brick-and-mortar stores.
But Stephen Kim, a marketing professor at Iowa State University, says focusing on growth alone misses a big opportunity to understand how franchises become profitable.
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