A possible situation in a particular context is the situation where informality prevails. The Jell-Ojobor and Windsperger (2013) model is based on property rights, with implications for the way ownership and decision rights are allocated. A certain legal environment, rule of law, is presumed. Contracts matter only if enforceable. What if a country’s legal system favors the local franchisee as compared to the foreign franchisor? This is the case in some Asian countries. Even if a franchisor has a strong sense of being able to enforce a contract, they may be reluctant to do so for a range of reasons. This is my understanding of a number of international franchisors in practice. What is the role of the contract in such a situation? Further, despite ownership and decision rights, what happens in practice could be quite different. Again, what is the role of the contract in such a situation?