Contract Theories and Franchising Franchising is an excellent field of application for contract theories. This paper aims at surveying the recent literature on franchise chains and contracts. It focuses on the choice of contractual terms (the « contractual design ») with an emphasis on...

Franchising is nowadays a prominent way to organize the distribution sector. While previous literature suggests that monitoring issues are a critical determinant of organizational choices, it is rather silent on the optimal monitoring strategy once the organization of the chain is set. In this...