  At the initial stages of this research, the assumption was that the
franchised businesses perhaps should not be affected much by recession as there
are multiple cash pools available inherent to the franchised business model.
However, after analyzing the available data, it indicated otherwise, the stock
price performance as discussed indicates a different pattern. The stock price
data is analyzed with an unconventional tool, Weibull distribution and
observations confirmed the presence of either a reverse trend in franchised
business than what is observed for non-franchised or the franchised stock
followed large food suppliers. There is a layered ownership and cash flow in a
franchised business model. The parent company run by franchiser depends on the
performance of child companies run by franchisees. Both parent and child
companies are run as independent businesses but only the parent company is
listed as a stock ticker in stock exchange. Does this double layer of vertical
operation, cash reserve, and cash flow protect them better in recession? The
data analyzed in this paper indicates that the recession effect can be more
severe; and if it dives with the average market, expect a slower recovery of
stock prices in a franchised business model. This paper characterizes the
differences and explains the natural experiment with available financial data.
