There is abundant evidence that franchises boost the economies
of developed and emerging market economies. In Mexico, for
example, despite its limited growth, the franchise system is
dynamic. Over the past three decades, the inconsistent continuity
of the global franchise business format may also be noted. The
aim here is to analyse the factors linked to franchise continuity in
the Mexican hospitality sector by applying panel data methodology
to a sample of 253 hospitality sector chains between 2002
and 2016. The results showed that franchised outlets, proven and
improved know-how, and market factors, under conditions of
endogeneity, maintained a positive effect on the continuity of the
franchise business format.
