Accounting for Decision Making and Control 7th Edition by Jerold Zimmerman

Exercise 16

Allied Van Lines
Why are drivers for long-haul (cross-country) moving companies (e.g., Allied Van Lines) often fran-chised, while moving companies that move households within the same city hire drivers as employees? Franchised drivers own their own trucks. They are not paid a fixed salary but rather receive the profits from each move after paying the franchiser a fee.