12 Analyse the disadvantages of a franchise for franchisee. [6]

[khadija nasir]

[kn] prifit sharing
[an] giving the franchisor royalty costs as well as having to share profits earned
[an+] can lead to less productivity and may block opportunities for growth

[kn] less flexibility in business
[an] franchisee must comply with the rules and restrictions of the franchisor
[an+] may limit their capacity to react to local market conditions and client preferences

[hafsa kashif]

[kn] limited creativity
[an] a franchisee has limited room for innovation as he must follow the guidelines that the franchisor gave
[an+] therefore the franchisee cannot put his own ideas into work
[kn] decreased profits
[an] as franchisees are required to pay different fees to the franchisor including marketing fees
[an+] thus this reduces profit making it difficult to grow the business

[Sodais sajid]

KN: High Initial Costs
AN: Franchisees often face substantial upfront fees and initial investment requirements
AN+: Thus this might demotivate some to invest
KN: Limited Autonomy
AN: Franchisees have to operate within the framework set by the franchisor
AN+: limiting their ability to make independent business decisions or implement unique strategies

[Abbas17]

(KN) They are told what to do and how to work
(AN) due to this there is less independence in the work space than in a non-franchised business,
(AN+) due to this confidence and work motivation is reduced and innovative ideas are not considered.

(KN) license fee must be paid to the franchisor as well as a percentage from the annual turnover,
(AN) due to this if the sails decline and the franchisee doesn't make enough revenue, a percentage may still be needed to be sent to the franchisor from the annual turnover,
(AN+) due to this the franchisee may earn less salary than in a non-franchised business as well will have to pay for the license fee to the franchisor.

[Areena]

[KN] High initial outlay of funds
(AN) Franchises frequently need to make a sizable upfront investment (AN+]For those looking for a more affordable business opportunity or those with limited capital, the high initial costs may be a barrier.

[KN] Limited chances for creativity
(AN)Innovation is not possible because of the expanding brand model, image, etc. that currently exists.
[AN+) As a result, this results in restricted flexibility and does not further boost efficiency