Disadvantages of Franchisee

Disadvantages
To Franchisor
1. Any bad business practice of franchisee can damage franchisor’s image.
2. Responsibilities of training and educating franchisee.
To Franchisee
1. Heavy amount is to be paid to franchisors as franchising fee.
2. Loss of some business controls.
3. Agreement is valid upto certain period.
4. No separate identification of franchisee.
5. Franchising is not determinant of success.
To Customers
1. Limited choice of product.