Performance of Fast‐food Franchises in Britain

Fast‐food and franchising should present a formidable marriage when coping with declining economic performance. Compares the performance of 54 (18 franchisors; 18 fast‐food franchisees; 18 fast‐food companies)between 1987 and 1990 using Taffler′s Z‐score analysis. Finds that franchisors′ performance during the period declined but remained better than that of fast‐food franchisees and fast‐food companies. Fast‐food franchisees have remained buoyant but there are incidences of potential failures. Outlines differing solutions to return these companies to health.