Restaurant Franchising, 3rd Edition

Pros and Cons of Franchising 79

the franchisors. Franchisees also fail to understand the upper hand that most

of the franchisors enjoy in a franchise system. A disadvantage may be rooted

in the disparity of bargaining power that often occurs in franchising. Because

franchisors usually have standing legal professionals, legal battles often prove

to be long and expensive for individual franchisees, which discourage franchi-

sees from getting into franchising. Impressions created by media also have an

impact on the positive or negative expectations of the franchisees.

Lack of Freedom

In spite of several advantages, franchising poses certain severe ...