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A European Perspective On The Success Of The Franchise Relationship

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Source : www.wmin.ac.uk | Size : 289047

On The Success Of The Franchise Relationship, John Stanworth, Nov. 1994 1. A EUROPEAN PERSPECTIVE ON THE SUCCESS OF. THE FRANCHISE RELATIONSHIP. Abstract

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The second reason for the European franchise industry being taken unawares by the lack of growth in the late 1980s and early 1990s was a gross under- estimation of the risks associated with the development of new and developing franchise systems, particularly in times of recession. Failure rates amongst relatively young franchise systems are much higher than is commonly realised. This acts as a brake on growth rates for the industry as a whole, particularly in times of economic recession when the likelihood of success is likely to drop substantially. Empirical data based on a sample of 74 United Kingdom (Britain plus Northern Ireland) franchise systems are presented here.

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