Competition Among Franchises, Company-Owned Units and Independent Operators:

Abstract

Population Ecology, as a dynamic model of competition, is applied to the study of franchise systems. The paper examines competition among populations of franchises, companyowned units, and independent operators, the relative responsiveness of each population to changes in its environment, and the impact of level of market demand and population density on each population. Census data from two sources, Franchising in the Economy and the Census of Retail Trade, are analyzed using Population Ecology methodologies. Directions for future research efforts are provided.