WakoDog Co. operates mobile hot dog stands. It pays its "employee vendors" $15 per hour to operate the stand (i.e. sell hot dogs). After being employed for 2 years, the vendors are given the opportunity to buy their stand outright at a price of:

"average annual stand revenue over 2 years x 20% = Price".

As well, they can continue to use the WakoDog name for a fixed fee of $3,000 per year.

WakoDog management has noticed that most "employee vendors" set up their stands in low traffic areas, while those who have purchased their stand tend to choose high traffic areas. Overall, since there are more "employee vendors", this is hurting WakoDog's revenue and profitability.

Task: Use the recommended 3-question algorithm to analyze the problem the company faces. Recommend a legitimate solution. Make note of any possible trade-offs. (Mainly qualitative answers will suffice).