Why is site selection highly important to most franchised retail operations?
A) Brand equity enables a franchisee to build clientele quickly.
B) The franchisor can negotiate a lease in a large shopping mall.
C) Financial capital enables a franchisee to build a large facility.
D) Market potential determines a store's sales and productivity.
E) Downstream channel functions depend on a store's location.

Question

Quizplus · Accepted Answer

Market potential, including factors such as demographics, competition, and consumer behavior, plays a crucial role in determining the success of a franchised retail operation. By selecting a prime location with high market potential, franchisees can increase the likelihood of attracting customers and driving sales, ultimately boosting their profitability and success.

Why Is Site Selection Highly Important to Most Franchised Retail