Final answer:
KFC outlets in Japan are located in existing buildings, which is in contrast to the freestanding outlets often found in the United States. The smaller size of KFC outlets in Japan is also a distinguishing feature.
Step-by-step explanation:
In terms of their location, KFC outlets in Japan differ from those in the United States as they are mostly located in existing buildings. Unlike in the U.S., where KFC outlets are often freestanding, in Japan, many KFC restaurants are integrated into existing buildings such as shopping centers or office buildings. This is due to the limited amount of available space in Japan's densely populated urban areas.
Additionally, KFC outlets in Japan are often smaller in comparison to those in the United States. This is again because of limited space in Japan and the need to fit within multi-purpose buildings.
Therefore, the correct answer is option b) They are located in existing buildings.