A note on applying retail location models in franchise systems: a view from the trenches

Authors: Schneider, Kenneth C; Johnson, James C; Sleeper, Bradley J; Rodgers, William C

Source: Journal of Consumer Marketing, Volume 15, Number 3, 1998 , pp. 290-296(7)

Publisher: Emerald Group Publishing Limited

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Abstract:

Asserts that the domestic fast food industry is undergoing a transition from growth to maturity. As a result, companies are fending off a flattening sales curve by looking abroad, searching out new target markets, crowding the market with more units. One form of assistance involves the development of mathematical models capable of determining "best" new locations. Using results from a recent survey of franchise owners in the fast food industry, reactions to methods by which franchisees are compensated for encroachment by the franchisor in the context of mathematical location modelling are discussed. In general, franchisees expressed displeasure with the manner by which location models are applied to franchise systems to date.

Keywords: Fast-Food Industry; Franchising; Location; Marketing Strategy; Retailing

Document Type: Research article

DOI: 10.1108/07363769810219152

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