Models based on economic profit divide the value of the company to “base value” and “added value”. Best-known economic profit models are EVA and Residual income (RIM). Based on them a franchise value approach has been developed.The franchise value model makes two main adjustments: First...

Many successful franchise chains directly own a positive fraction of stores --- a structure referred to as plural form. We propose that this ownership structure is chosen as a commitment not to expropriate franchisees. The theoretical model is based on an empirical analysis of contract and...