

Type of Document Master's Thesis Author Hurst, Angela L. M. Author's Email Address ahurst@vt.edu URN etd-324311849741271 Title The Impact of The Iowa Franchise Law on Restaurant Franchisor Expansion Strategy: An Exploratory Study Degree Master of Science Department Hospitality and Tourism Management Advisory Committee
Advisor Name Title Mahmood Khan Committee Chair Eliza Tse none Eugene Rackley none Keywords
- franchise
- resturant
- law
Date of Defense 1997-04-22 Availability unrestricted Abstract
The enormous success of franchising
as an expansion instrument has
resulted in a franchising boom over
the past few decades. In response to
the success of franchising as a
business expansion method and the
subsequent complaints by
unsuccessful or defrauded
franchisees, legislation was enacted
at the federal and state level to
attempt to prevent franchisor
abuses. The 1992 Iowa Franchise
Law has been called the most
controversial and restrictive pieces
of franchise legislation in recent
memory. The purpose of this
research project was to determine
the impacts of the 1992 Iowa
Franchise Law and its 1995
Amendments on restaurant
franchisor expansion strategy,
litigation with franchisees, and
operational changes. The study
sought information from US
restaurant franchisors who may have
been impacted by the law. The
research instrument consisted of a
self-administered questionnaire,
which was sent to 203 restaurant
franchisors. A total of 36 companies
responded and participated in the
study. The results indicated that the
law had an impact on expansion
strategy of those who responded,
specifically in the area of granting
new franchised units. The results are
representative of smaller businesses
with less than 500 units.
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