Eight disadvantages of franchising
Costs may be higher than you expect. As well as the initial costs of buying the franchise, you pay continuing management service fees and you may have to agree to buy products from the franchisor.
The franchise agreement usually includes restrictions on how you can run the business. You might not be able to make changes to suit your local market.
You may find that after time ongoing franchisor monitoring becomes intrusive
The franchisor might go out of business.
Other franchisees could give the brand a bad reputation, so the recruitment process needs to be thorough
You may find it difficult to sell your franchise - you can only sell it to someone approved by the franchisor.
All profits (a percentage of sales) are usually shared with the franchisor.
The inflexible nature of a franchise may restrict your ability to introduce changes to the business to respond to the market or make the business grow.