Quality & Quantity (2007) 41:275–290 © Springer 2006
Developing and Implementing a Selection Model
for Bedding Chain Retail Store Franchisee
Using Delphi and Fuzzy AHP
and BI-YU CHEN
Graduate Institute of Business and Management, Yuanpei University of Science and
Technology, Hsin Chu City, 30015, Taiwan, R.O.C.
Abstract. This work presents a Fuzzy Analytic Hierarchy Process (Fuzzy AHP) model that
adopts several important criteria. A questionnaire based on selection criteria identiﬁed from
pertinent literature and interviews with experts is designed using the modiﬁed Delphi Tech-
nique and then sent to experts and decision makers. Major selection criteria are then analyzed
and ranked using Fuzzy AHP. The proposed selection model not only enables a franchiser to
select franchisees more objectively, but also be apply to other brand bedding company chain
stores, thus enhancing commercial operations.
Key words: chain retail store, franchising, bedding, Delphi, fuzzy analytic hierarchy process.
As an important business model, chain retail stores take the form of either
a regular or a franchise store. However, franchising has been a prominent
means of selling a wide array of products and services (Kotler, 2003). A
chain retail store extends the franchisee not only by decreasing overhead
costs, but also by achieving economies of scale efﬁciently, as convenient
stores and pharmacies are common examples of franchising corporations;
but too many franchise stores negatively impact the generated revenues
of other the same brand franchisees belonging to the same corporation.
Importantly, a franchiser must limit its number of expanded stores in a
speciﬁc area to secure stable revenues for existing franchisees and econo-
mize its use of corporate operating resources. However, franchisers lack an
objective means of selecting the most promising franchisees desiring to join
the chain retail store.
Author for Correspondence: Pi-Fang Hsu, Graduate Institute of Business and
Management, Yuanpei University of Science and Technology, No.306, Yuanpei St., Hsin
Chu City, 30015, Taiwan, R.O.C. Tel.: (886)-3-5381183 Ext 8420; Fax: 886-3-5309365;