Cons of Franchising Business

Investment and Funding

Though franchising eventually reduces the capital and increases the profits, a franchise requires financial support, guidance, and managerial assistance. And these are generally provided by the franchisers.

Legalities

Some strict laws and regulations must be followed while going forward with this business undertaking. Both parties must conform to the federal rules established by the federal government for a seamless and legal franchising venture that requires professional help from expert corporate lawyers.

Company risks

Lastly, when a service is leased out to a third party, allowing them to use all or some features of a parent establishment, the risks of the franchises not being on par with the parent company is always a concern. Since the franchisee controls a majority of the work, the franchiser should be able to maintain its original characteristic features.