A Study on the Determinants of Diversification and Performance of Franchisor*

Abstract

Conclusions:The study provides the following practical implications. First, by using the number of franchise brands owned by the franchisor as a moderating variable, it was confirmed that the characteristics of the franchisor had a different effect on diversification. Through this, it was revealed that the number of franchise brands owned by a franchise headquarters is important in the diversification analysis of franchisor. Second, it was revealed that diversification of franchisees has a positive effect on performance, and that simple franchise brand expansion alone cannot improve franchise performance.