Advantage Disadvantages

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Disadvantages:
Loss of control: If the franchisor is not good at selecting franchisees, drafting rigid clauses and assisting and training affiliates, there is a risk that the latter may cause problems. The consequence is easy to understand, that is, the inability of the franchisor to control and resolve all the problems in each affiliated point, compromising the image of the Brand and the identity of the brand.
Return on investment not immediate: The investment to develop a franchising network is usually equal to the cost of a new direct opening, about €30,000, with the difference that once completed you can open 100, 200, 1000 points of sale without paying anything, indeed earning from each point entry fee and 99 acres data royalties. The disadvantage of this investment, however, is the fact that it does not yield immediately, if not in the improvement of the performance of the current point. In fact, this money is recovered only once affiliations are actually sold. You must therefore be ready with marketing strategies to find affiliates .
The advantages and disadvantages of franchising for the Franchisee

BUSINESS SUPPORT: receiving all the know-how needed to manage the business successfully LIMITS OF CHOICE: you must adhere to the Operating Manual, being able to only recommend new procedures but not change them independently
REDUCING BUSINESS RISK: investing in a format that already works without creating anything new and trying your luck ROYALTIES: a huge advantage for the affiliate because they include support services.