An Analysis Of Three Confronting Theories To Explain Franchising Supply

Abstract

In this article, we have analyzed one of the most relevant lines of research in the franchising literature - the creation of a franchising system. Three confronting theories are reviewed and presented in this paper to explain the franchising phenomenon; namely, the resource scarcity theory, the agency theory, and the plural from theory. The conclusion of our analysis is that probably none of them is able to explain the full franchising occurrence, but each theory explains different parts of the franchising phenomenon, so they should be perceived as complementary theories.