Disadvantages of Franchises

On top of the payment of fees and royalties, franchisees take a hand over some control over their own businesses, yet lose their own identity. A lot of locals don't know who is the owner of their local McDonald's, Wendy’s or other local or national franchises. Thus , a lot of franchise outlet owners are placed in the dark—which are often a setback or disadvantage.

Franchisees are usually subjected to tight supervision by the franchisor. They cannot pick their own business title or name, purchase products and services from whom they select, or come up with the placement at which they'll conduct business. Additionally, franchisees typically must adhere to the franchisor guidelines closely and not stray away from their methods in conducting business.

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