We also controlled for FRUNITSjt, the natural log- transformed number of franchisee-owned units of franchise i in year t. In addition, we included the incidence of shirk- ing by both parties. For franchisee shirking, we coded the binary variable UNPAID as 1 if unpaid dues by the fran- chisee were the reported reason for the conflict (0 other- wise); we coded the variable TRADEMK as 1 if the reason reported for the conflict was trademark misappropriation by the franchisee (0 otherwise). We then computed franchisee shirking (FESHjj) as the sum of UNPAID and TRADEMK. Similarly, we coded INFO as 1 if the franchisor's failure to provide adequate information disclosure or provision of misleading information was the cited reason for the litiga- tion and as 0 otherwise. We coded the variable BREACH as 1 if breach of contract was claimed by the franchisee and as 0 otherwise. We then computed franchisor shirking (FRSHij) as the sum of INFO and BREACH. Table 2 pro- vides the descriptive statistics and correlation matrix for all variables included in the study.