Growth and survival: Evidence from Spanish franchising

Abstract

This paper analyses growth and survival of Spanish franchised chains. First, an OLS regression is performed to study the relevant variables that influence the chain's growth rate. Second, we conduct a discriminant analysis in order to determine which of those variables also help to explain chain survival and, therefore, are relevant for classifying chains into “survivors” or “non survivors”. Overall, we can say that our results indicate that chains that use franchising more intensively increase their growth rates and possibilities of survival. We acknowledge financial support received through MCI-ECO2010-19421.