Which of the following is a disadvantage to the franchisee?

• A. Back-up support is given
• B. Strict contracts have to be signed
• C. National marketing may be organised
• D. Less risk - a tried and tested idea

Answer: (B)

Franchising gives an established brand and ongoing support, but the main downside for the franchisee is the binding franchise agreement. A strict contract means you must follow the franchisor’s rules on how to run the business—from standard operating procedures and approved suppliers to pricing and quality standards—and you’re tied to the terms, fees, and targets set by the franchisor. This limits your freedom to adapt the business to local needs and can bring penalties if you don’t comply. By contrast, back-up support, national marketing, and a proven concept are advantages that help the business succeed, not drawbacks.