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Question: Most supermarkets today are staffed by employees of a chain like Kroger. Piggly Wiggly and IGA, however, operate under franchise agreements with independent owners. Why are franchised supermarkets rare relative to stores owned by chains? Why do you expect franchised stores to be more common in small cities (where most Piggly Wigglys and IGAs are located) than in large ones?

Microeconomics, Economics

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