Restaurant Franchising, 3rd Edition

274 Restaurant Franchising

Franchisees on the other hand give up a portion of the revenue for using

the systems designed by the franchisors. They cannot make any changes,

however profi table, to the operating or business aspects without the permis-

sion of the franchisor. They do not have the ability to terminate or extend the

agreement unilaterally. They also cannot sell or transfer the contract to other

interested parties. They also do not have control of advertising and promo-

tion. They are also bound to buy certain supplies and resources only from the

approved vendors. Irrespective of the profi t or loss, franchisees have to pay

royalty on ...