What does it take to succeed in the fast-food franchising business? High capital cost of opening new stores + need to expand rapidly to stake out the territory Scale economies (high fixed costs + small returns on unit sales) = traffic volume is crucial Location, tow, neighborhood, or even side of the street Effective store management = key factor in profitability (margin were small, opportunities of waste, shrinkage and inefficiency were many) Building local public relations, maintaining employee's morale, developing customer goodwill, keeping tab on competing chains Chain's overall image = important 9 fOCUSEd theme or DFOdUCtS line Consistency, and reliability No deviate too far from its basic menu + core theme Training and support of the brand team, take advantage of the training, marketing programs of the franchisor