Economic rents in franchising: Do they exist?

► Franchisors may motivate good practices leaving economic rents to their franchisees. ► We found ex post and ex ante rents in foodservice industry, using franchisees' actual financial statements. ► The presence of rents is sensitive to franchisees' size. ► Medium-sized firms obtain the fewest advantages when becoming franchisees. ► The majority of the single-unit franchisees and only the largest multi-unit franchisees gain rents.