Thursday, October 26, 2017

Franchising, form of contracting/decreasing transaction cost

https://en.wikipedia.org/wiki/Franchising

The boom in franchising did not take place until after World War II.

1. Subway (sandwiches and salads) | startup costs $84,300 – $258,300 (41,916 locations worldwide in 2015).
2. McDonald's | startup costs in 2010, $995,900 – $1,842,700 (36,368 Locations in 2015)
3. 7-Eleven Inc. (convenience stores) | startup costs in 2010 $40,500- $775,300, (56,439 locations in 2015)
4. Hampton Inns & Suites (midprice hotels) | startup costs in 2010 $3,716,000 – $15,148,800
5. Great Clips (hair salons) | startup costs in 2010 $109,000 - $203,000 (3,694 locations in 2015)
6. H&R Block (tax preparation and now e-filing) | startup costs $26,427 - $84,094 (10,800 locations in 2015)
7. Dunkin' Donuts | startup costs in 2010 $537,750 - $1,765,300
8. Jani-King (commercial cleaning) | startup costs $11,400 - $35,050, (11,000 partners worldwide in 2004)
9. Servpro (insurance and disaster restoration and cleaning) | startup costs in 2010 $102,250 - $161,150
10. MiniMarkets (convenience store and gas station) | startup costs in 2010 $1,835,823 - $7,615,065

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