Double moral hazard and franchising: A dual case study approach

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11 Scopus citations


The issue of double moral hazard has been neglected in the Management literature while one-sided moral hazard has only been implicitly recognized by many Agency theorists. This paper introduces the notion of double-sided moral hazard and empirically studies a typical setting for such a problem-franchising systems. Using a dual case study approach of the restaurant chains Chick-Fil-A and Schlotsky's Deli, I offer both an introduction of the concept as well as potential prescriptive measures to avoid double moral hazard especially within franchising chains.

Original languageEnglish (US)
Pages (from-to)15-24
Number of pages10
JournalJournal of Organizational Culture, Communications and Conflict
Issue number2
StatePublished - Jan 1 2014

All Science Journal Classification (ASJC) codes

  • Communication
  • Strategy and Management


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