Abstract
<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-ansi-language: EN-US;"><span style="font-family: Times New Roman;">The objective of this study is to explain the franchisor&rsquo;s choice between single-unit and multi-unit franchising. We employ a comparative case analysis method to compare the theoretical patterns with the empirical patterns of the governance forms. We selected two multi-national franchise networks based in Austria. Our findings suggest that franchisor&rsquo;s multi-unit franchising strategy can be explained by monitoring costs, franchisee&rsquo;s transaction-specific investments, franchisor&rsquo;s system-specific assets, and franchisor&rsquo;s financial resources scarcity. </span></span></p>
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