Present an economic analysis of the retail franchise contract. Why should successful franchisors leave rents with franchisees?

Present an economic analysis of the retail franchise contract. Why should successful franchisors leave rents with franchisees? Would you expect the attractiveness of franchising to the franchisor to fall over time? A franchise agreement is defined as a contractual agreement between two independent firms, whereby the franchisee pays the franchisor (owner) for the right to sell the franchisor's product and/or the right to use his trademark at a given place and for a certain …

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