The owner of the local "Fatty Foods" chain of restaurants is thinking about retiring. He has two options: he can hire salaried managers for his stores or franchise them to local entrepreneurs. If the owner believes that there are high costs to monitoring the stores after he retires, what should he do?

a. Let the stores stay company stores
b. Sell them off as franchises
c. Shut down the business completely
d. Never retire


b

Economics

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