초록

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Abstract ▼ AI-Helper

Location decision problems of franchisees which determine revenues and costs in business are one of the most important issues in franchisor research. The major portion of franchisees are located in Kyunegi-do and 5 major cities in Korea. What's the reason behind this fact? The purpose of this resear...

Location decision problems of franchisees which determine revenues and costs in business are one of the most important issues in franchisor research. The major portion of franchisees are located in Kyunegi-do and 5 major cities in Korea. What's the reason behind this fact? The purpose of this research is to provide the rationale for location decisions of franchisor businesses. Based on the break-even analysis, we conclude that major decisive factors of location decisions are demand and costs of franchisor businesses. At the good location which can attract many customers, franchisor businesses can be much more competitive than independent stores. However, at the bad location, franchisor businesses can not be maintained because of high costs.

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