A Systems Dynamics Model To Analyze The Influence Of Financial Resources On The Percentage Of Franchised Units

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Rosa Ma Mariz-Pére Mariz-Pére
Ma Teresa García-Alvarez

Keywords

franchising, financial resource constraints, systems dynamics

Abstract

In this paper, we analyze the evolution of the percentage of franchised units. For this purpose, the sample includes Spanish chains that were already franchising in 1997 and continue to do so in 2005 a nine year period-. Specifically, we study the influence of the availability/constraints of financial resources on the decision of the franchisor to invest in an additional chain unit or to franchise it. For this, we develop a simulation model using the Systems Dynamics methodology.

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