The owner of a fast-food franchise has exclusive rights to operate in a medium-sized metropolitan area. Currently,
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The owner of a fast-food franchise has exclusive rights to operate in a medium-sized metropolitan area. Currently, the owner has one outlet open, which has proved very popular, often with lines of waiting customers. Thus, the owner is considering opening additional outlets in the area. What key factors should the owner investigate before making a final decision? What trade-offs would there be in opening one additional site versus opening several additional sites?
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