Disadvantages include the limitations on creativity and autonomy as well as the ongoing royalties and fees that must be paid to the franchisor.
What are the disadvantages of franchising ?
- Thread starter Johnson2468
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Franchising is a very good business idea to try l because you going to make reasonable amount of profit out of it.
Yeah, I think it is a very good idea for business people that have money because it will make the whole process smooth. A lot of businesses always consider it because of how seamless it is.
Some of the disadvantages of franchising include
1. Lack of independence and creative opportunities because you must comply with the franchise rules and regulations.
2. High initial set up cost.
3. You have to pay for the royalty fee.
1. Lack of independence and creative opportunities because you must comply with the franchise rules and regulations.
2. High initial set up cost.
3. You have to pay for the royalty fee.
The disadvantage of franchising is the lack of control from the franchisor over his own business, because usually everything is controlled by a central franchisor system. Franchise business buyers may not just look for their own raw materials, determine other products to be sold apart from those determined by the central system, set their own prices, and so on.
