The present study analyses the relative efficiency of franchise services and
characterises the best companies, confirming the relationship between efficiency and
profit. These companies are from the trade and other services sector , the main
group of service-providing companies in the Spanish economy. The methodology
calls for first comparing the relative efficiency of franchisers and ownership
enterprises. Second, the focus turns to the most efficient franchise services, using a
super-efficiency model to rank them. The paper then goes on to cover the analysis of
the main characteristics of the best franchise enterprises, the number of own
establishments in a franchise business and the profitability of the company. This
paper presents arguments as to why companies from the trade and other services
sector are included. The main conclusion is that, whilst the number of
establishments is irrelevant in achieving greater efficiency, many of the most
efficient enterprises have high returns.García Martin, CJ.; Medal Bartual, A.; Peris-Ortiz, M. (2014). Analysis of efficiency and profitability of franchise services. Service Industries Journal. 34(9):796-810. doi:10.1080/02642069.2014.905921S79681034