What are the Disadvantages of a Franchise Business?

[Suba]

When we want to run any business, we should not only think about profits, but we also need to think about disadvantages so that we can minimize risks. Likewise, when we are going to open a franchise business or become a franchisee, we should also think about the disadvantages. In your opinion, what are the disadvantages of a franchise business?

 

[Fidelia]

The only challenge that I see with a franchise business is that the franchise owner has the right to withdraw his franchise from you after it's expiration. That can affect your business and brand.

 

[Suba]

The only challenge that I see with a franchise business is that the franchise owner has the right to withdraw his franchise from you after it's expiration. That can affect your business and brand.

I think that's normal, if the validity period of the agreement has expired or expired and not been extended, then legally the franchisor has the right to withdraw the permit.

 

[deucher]

I think that if you open a franchise of a well-known brand, the main disadvantage will be that there may be too many of them and then you will not get as much profit as you were promised, because there are much fewer buyers than open franchises

 

[Stardom22]

We have so many disadvantages regarding the operation of the franchise business that ranges from limited creative opportunities to the higher costs of the initial investments and start-up costs for the business among other setbacks.

 

[freelancermaria]

Franchise businesses might have many disadvantages that potential franchisees should be aware of. For starters, the initial costs required to launch a franchise can be significant, making it difficult for you. Second, because franchisees rely on their franchisors for many elements of their operations, they may have little control over some aspects of their business. Finally, franchise businesses face a risk of brand damage as a result of bad performance by other franchisees in the network. In such circumstances, the entire franchise's reputation may suffer, affecting individual franchisees' income and growth.

 

[King Belieal]

The major disadvantage with running a business as a franchise is that you can't grow above the limits of the franchisor. If you want to expand to other jurisdictions, you would need the approval if the franchise whose brand you are floating. It just limits the business unlike having your own brand.

 

[Augusta]

You can only sell the products of the franchise business and you need to stick to the price that are streamlined

 

[neku]

If there is problem with the quality of the franchised product or service, the franchise may make a loss. The franchise has less control over the product and cannot make any improvement or changes if they wish. They also have to invest a large amount.

 

[Stardom22]

The great part with the franchise business is the fact of taking over the business with its already existing customers. This eases the hustles for looking out customers from scratch for the case of the newly created businesses.

 

[Nomad]

You will have to pay a lot of money as a fee to the franchise owner . This is the biggest disadvantage of franchise business.

 

[Min George]

One core disadvantage of a franchise business is the lack of identity for your business. You have to thrive with another company's identity.