“…In franchising, agency theory is also used to model financial returns (Obi, 2005;Brewer, 2003); the proportion of franchising (Alon, 2001;Seshadri, 2002;Pfister et al, 2006;Castrogiovanni et al, 2006b); contractual restraints (Brickley, 1999); franchise compensation (Vázquez, 2005); power and control (Quinn & Doherty, 2000;Pizanti & Lerner, 2003;Dahlstrom et al, 2009); performance (Chaudey & Fadairo, 2008); multi-unit franchising strategies, and internationalization (Sashi & Karuppur, 2002). Agency theory portrays franchising as an organizational form that minimizes the organizational agency costs, especially the monitoring costs.…”