Why might a parent company choose to franchise

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Reference no: EM13189699

1. Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees? In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fact consistent with our discussion of specific investments?

2. Every so often, a disgruntled college graduate sues her school on grounds that her tuition payments did not land her the good job she was expecting when she started there. Courts invariably throw out cases like hers. They are, however, willing to entertain suits against trade schools by graduates who make the same claims about inability to qualify for jobs that use the skills they learned in them. Why the difference?

Reference no: EM13189699

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