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Unformatted text preview: 10, 1993.
98 38.1 percent of new franchised businesses: Cited in testimony of Dr. Timothy Bates to the Subcommittee on Commercial and
Administrative Law, Judiciary Committee, U.S. House of Representatives, June 24, 1999.
According to another study: Despite the high failure rate, the study’s author, Scott A. Shane, believes that franchising is still the best way
to expand a company quickly, though the financial risks are often understated. See Scott A. Shane, “Hybrid Organizational Arrangements
and Their Implications for Firm Growth and Survival: A Study of New Franchisors,” Academy of Management Journal, February 1996.
“In short”: Testimony of Dr. Timothy Bates.
99 Ralston-Purina once terminated: See Boas and Chain, Big Mac, pp. 162–63.
100 more legal disputes with franchisees: Cited in Richard Behar, “Why Subway Is ‘The Biggest Problem in Franchising,’” Fortune, March 16,
the “worst” franchise in America: Quoted in Jennifer Lanthier, “Subway Bites,” Financial Post, November 25, 1995. For other accounts of
Subway’s questionable business practices, see Barbar...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08