INGRESOS NETOS DEL FRANQUICIADO: UNA SEÑAL PARA ELEGIR FRANQUICIA EN UNA CRISIS

• Main Authors: María Esther Calderón Monge, Pilar Angélica Huerta Zavala
• Format: Article
• Language: English
• Published: Fundação Getulio Vargas 2015-10-01
• Series: RAE: Revista de Administração de Empresas
• Subjects: Distribution channel; franchising; signaling; panel data; franchisee
• Online Access: http://rae.fgv.br/sites/rae.fgv.br/files/ingresos_netos_del_franquiciado_una_senal_para_elegir_franquicia_en_una_crisis_2.pdf

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.