An Exploratory Study to Identify the Site Selection Factors for U.S. Franchise Restaurants

Abstract

The purpose of this study was to identify site selection factors under six categories that are most pertinent for the successful operation of U.S. franchise restaurants. The results highlight the most important site selection factors, which can be used as a guide by franchisors as well as franchisees. The selected six site selection categories as narrowed down in this study included general location, position of site, demographics, traffic information, competition, and cost consideration. The Delphi technique identified 56 site selection factors under these six categories, which were ultimately predicted as necessary for the success or failure of franchise restaurants.

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