List and Explain 5 keys to success in the franchising business.

1. Having a loyal customer base

- A loyal customer base improves the likelihood that clients will become repeat
buyers.

2. Having a clear market position

- The corporate arrangement as defined by their franchisor must be adopted by

franchisees. The organisation and its clients will compete for the same consumer
market with a given market position.

3. Business expertise of operators

- Franchisees benefit from their franchisor 's experience, direction and leadership in
extending the business model into the future.

4. Ability to control stock on hand

- In order to satisfy consumer demand, operators benefit from managing stock on hand
to minimise manufacturing costs and ensure sufficient stock turnover.

5. Establishment of brand names

- Many franchises have produced brand identities and the specific product or service
has been purchased into a franchise licence by individuals.