Buisness Notes: Possible pitfalls of operating as a franchise

Pitfalls of operating as a franchisee

  • Specific contracts
  • Have to pay a large franchise fee and other expenses
  • Loads of competition
  • Takes most of the risk
  • If the franchise fails you fail

Pitfalls of operating as a franchisor

  • Have to provide the equipment
  • Has to train the franchisee
  • May get a bad reputation
  • Franchise may grow too fast

– Esjae x

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