Franchising has long been seen as an avenue into small business. For some, it offers opportunities to build up franchise systems, as franchisors, by cloning small business success in exchange for a royalty. For many others, as franchisees, it offers opportunities for self‐employment, combining...

Examines the effects of financial resource availability and system size on ownership redirection patterns – the argument that successful franchisors will acquire less successful franchisee units, resulting in corporate ownership – in 12 franchising business sectors. Discusses the theory of...