I’m working on a marketing question and need an explanation to help me understand better.
as per agency theory, you may consider companies like Subway and Econolodge as principals, and franchisees as agents. Given this arrangement, why is conflict being experienced in the principal-agent relationship? Is the conflict related to adverse selection or moral hazard? How can this conflict be resolved? Instead of answering the above questions separately, please combine your answers to the questions above into one essay.
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