Business Question: Why do franchises need market research to be succesful?

Question

Business Question: Why do franchises need market research to be succesful?

Answer 1

Selecting store locations is one type of research question.  They look at whether the demographics and lifestyles of an area match the target audience.  Market research can also help with pricing decisions, shelf space or menu item allocation, and optimizing advertising effectiveness.  Without research to guide decisions, franchise owners are just making educated guesses or managing by trial and error.

Answer 2

Um so they can better serve the needs of the community they plan to serve.  You wouldn't want to be a high end store like Gucci in a low-income neighborhood.  Or a FuBu store in a predominantly white neighborhood.  You have to discover the dynamics of your customer i.e. income levels, spending habits, family dynamics,

This is why you see certain stores in only certain areas.  Go to the ghetto and point out how many high end stores you see?  Then go to the rich neighborhoods and tell me how many Pawn shops or Title Loan shops you see.