Franchise encroachment is the addition of an outlet in the vicinity of existing franchisees. It is a highly contentious issue resulting in revenue cannibalization of incumbent locations. Against this backdrop, we consider the possibility that the addition of same brand outlets can in fact, create positive e_ects via customer utility and ultimately, bene_t franchisees. This may be due to a range of mechanisms such as quality signaling, learning, or brand awareness, resulting in a positive pathway on franchisee performance. We unpack this using detailed proprietary and publicly available datasets from the hotel industry over a _ve-year period, and an experiment. Our results evidence positive e_ects on customer utility for same brand outlets, and stronger e_ects for newer brands, cross brands, and online travel agency channel bookings. Counterfactual simulations indicate that although encroachment hurts franchisees on average, it can modestly bene_t same brand franchisees in low brand density markets. Together, this illustrates the potential "sunny side" of encroachment, underscoring the need to update our view of encroachment as context-dependent. Our novel emphasis on customers versus the dominant _rm view suggests customer and incumbent responses to encroachment should be accounted for in the development of franchise strategy and public policy decisions.

特许经营的侵害是在现有特许经营者附近增加一个出口。这是一个极具争议的问题，导致现有位置的收入被蚕食。在这种背景下，我们认为增加相同品牌商店的可能性实际上可以通过客户效用和最终受益者的加盟店产生积极的影响。这可能是由于一系列机制，例如质量信号，学习或品牌知名度，导致了加盟商绩效的积极途径。我们使用_ve年内来自酒店行业的详细专有和可公开获得的数据集对此进行解包，并进行了实验。我们的结果表明，相同品牌商店的客户效用产生积极影响，而较新品牌，跨品牌和在线旅行社渠道预订的影响更为明显。反事实模拟表明，尽管侵占平均会损害加盟商，但在低品牌密度的市场中，它可以适度地惠及同一品牌的加盟商。总之，这说明了侵占的潜在“阳光一面”，强调需要更新我们的侵害观点取决于上下文的观点。我们关于客户而不是占主导地位的_rm观点的新颖强调表明，在制定特许经营策略和公共政策决策时，应考虑到客户和侵占行为的应对措施。