Leadership

Are Franchises Bad Employers?

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Executive Summary

Franchise jobs are often viewed as epitomizing a "Low-road" employee-management approach characterized by high turnover and several practices that are deemed unsophisticated, such as low investment in training, deskilling of work, and little encouragement of employee involvement. Research on franchise operations suggests, however, that the basic operating principles and practices of franchises tend to be more sophisticated than those of equivalent independent operators. This paper uses data from a national probability sample of establishments, drawn from surveys conducted in the mid-1990s, to examine the relationship between franchise status and employment practices.

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