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n of size to concern with stability, a traditional approach, and propensity to set up new products. Huge organizations should plan to reward some industrial activity to keep open feedback channels for new ideas. Research suggests that the resources of a large organization are best when combined with the flexibility of smaller units for competitive advantage.. As the environment becomes more competitive, the need for industrial activity in franchising is likely to increase dramatically. The challenge for franchisors will be managing new ideas from the field while at the same time preserving the integrity of the franchising system.

Finally, industry, particularly degree of competition, may also influence strategy or moderate the effects of the franchisor variables. This suggests that research efforts should be directed toward developing a model of industrial activity that can take into account both industry and franchisor context.

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