Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 25, 2010 erstellt
Description:
This article shows that the higher the problems of hold-up and free-riding in franchise systems, the higher the probability that the franchisor will provide franchisees with territorial exclusivity. It therefore appears that territorial exclusivity is an assurance from a franchisor that the return on the sunk investments of a franchisee will not be subsequently held-up. Moreover, it appears that territorial exclusivity alleviates free-riding problem by making the franchisees local monopolists for the brand in question, which increases the probability that they will receive most of the benefits generated by their service provision