Over the past decade many scholars have attempted to explore the determinants of franchisor survival. Economists and sociologists argue that firms survive if they gain economic efficiency and institutional legitimacy. This study, based on economic and socioecological perspectives, developed the hypotheses regarding the effects of typical antecedents of the survival of franchising companies. We examined the survival of 777 franchisors that were in existence in the 2002 Survey of Korean Franchising Industry and found that 210 (27 percent) of them exit from franchising during the 2002-2005 period. The list of franchisors who were out of business in 2005 was identified from several sources such as Korea Franchise Association, Korea Association of Convenience Stores, and Venturing & Franchising Magazine. To test the hypotheses we used a logistic regression analysis using a sample of 496 franchisors listed in the 2002 Survey. Firm survival, the dependent variable, was measured using a dummy variable. The independent variables we selected from the extant theoretical ground include firm size, firm age, the amount of initial investment, royalty rate, company-ownership of outlets, information disclosure, and the level of franchisee support. Our analysis revealed that among those variables that were supposed to affect franchisor survival, firm size (the total number of franchise units), firm age (the number of years in franchise business), the disclosure of financial statements, and the imposition of royalty affected significantly the franchisor survival. Consistent with the previous research it was found that firm size and history tend to increase the probability of survival. Information disclosure and royalty imposition also enhanced the probability of firm survival. However, contrary to our expectations, it was found that the amount of initial investment, the level of franchisee support, and the ratio of company-owned outlets have no significant effects on firm survival. Overall, this study strongly supports the socio-ecological explanations for firm survival. It is recommended that beyond the economic efficiency franchising researchers should take into account the institutional legitimacy as an important determinant of firm survival. The results have some implications for business practitioners. From these results we suggest that franchisors need to expand their size up to critical mass as rapidly as possible and should have longer experience in franchise business before they start up the system. Franchisors also need to disclose their financial statements because information disclosure legitimizes the organizations, thus enhancing the probability of their survival. The results also have implications for governmental agencies. It is recommended that they should emphasize the size, history, and company disclosure when introducing a franchise accreditation policy and when establishing a franchise guideline for potential investors.