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The Dynamics of Contractual Design: Determinants of Contract Duration in Franchising Networks

  • Odile Chanut
  • Magali Chaudey
  • Muriel Fadairo
  • Frédéric Perdreau
Chapter

Abstract

This paper deals with the contractual design in franchising networks. We investigate the determinants and the evolution of contracts duration on the basis of a multidisciplinary approach using law, management and economics. Taking into account the traditional explanation of franchise contracts duration in terms of specific investments, this paper focuses on the dynamics of contractual design. The empirical analysis is based on franchise French data, coupled with financial data. We use descriptive statistics and econometrics. A dynamic panel data model for contract length is estimated. Our results highlight specific dynamics and adjustment costs in the determination of contracts duration.

Keywords

Adjustment Cost Specific Investment Target Duration Contract Duration Transaction Cost Theory 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Odile Chanut
    • 1
  • Magali Chaudey
    • 2
    • 3
  • Muriel Fadairo
    • 2
    • 3
  • Frédéric Perdreau
    • 3
    • 4
  1. 1.CRET-LOGUniversity of Aix-MarseilleAix-en-Provence Cedex 1France
  2. 2.GATE Lyon-St EtienneSaint-Etienne cedex 2France
  3. 3.University of LyonLyonFrance
  4. 4.COACTIS Lyon St. EtienneSaint-Etienne cedex 2France

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