Why do major franchise chains build multiple locations within a single city block?

It is a common sight to find two or three identical franchise restaurants, such as Starbucks or McDonald's, clustered within walking distance of one another. This investigation explores the economic logic behind this proximity and whether these neighboring outlets function as collaborators or rivals.

The phenomenon of hyper-local franchise clustering raises questions about market saturation and profitability. By examining the operations of brands like Wetzel's Pretzels, this exploration follows the business chain from corporate executives down to individual franchisees.

The narrative highlights the pursuit of the American dream through franchising, illustrating the practical realities of managing multiple locations in high-traffic areas like malls and airports.

Source: There's no business like dough business | Planet Money