Resale Pricing as Part of Franchisor Know-How
Subject:
franquicias
franchising
precios
reventa
capacidades
Know-How
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Emerald Publishing Limited
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Abstract:
As franchisees are independent entrepreneurs, one important part of the business format that franchisors are not allowed to impose on their franchisees is resale prices. They are only allowed to indicate a recommended or a maximum price. This study looks further into the capabilities underlying the calculation of resale prices and suggests that price-setting is part of both: the “business know-how” transferred to franchisees and the “organizational know-how”, that is, capabilities developed and kept at the franchisor level.
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The authors acknowledge the International Society of Franchising for the Best Paper Award they received at the 2019 conference as well as the Spanish Ministry of Economy and Competitiveness (ECO2017-85704-R) for its valuable support.
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