This study accesses the establishment data from the Census of Retail Trade (CRT) to examine how the effect of franchising influences the performance of hotel segments across all identifiable hotels in the United States in the aggregate, as well as each individual quality segment. First, the findings indicate that franchising is associated with higher performance both with and without controlling the franchise status. Second, the results imply that the effects of franchising and multi-unit franchising have differential benefits based on the product quality attributes. Our results further suggest that previous studies examining franchising way have overlooked these differences.
