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Analyze the organization of Franchisor-Franchisee by fully explaining the following issues: (a) Is the Franchisor-Franchisee organization an example of a fully integrated organization or a

Analyze the organization of Franchisor-Franchisee by fully explaining the following issues:

(a) Is the Franchisor-Franchisee organization an example of a fully integrated organization or a decentralized organization? What aspects of the Property Rights Theory (PRT) apply?

(b) What is the role of the franchise fee? Can it be regarded as an example of a quasi-rent?

(c) Why are the input prices franchisors charge franchisees for supplies lower than those charged by firms to their dealers, for example?

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