Title page for ETD etd-324311849741271


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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