high degree of control
limitations on additional or collateral initiatives by franchisee
potential dispute of agreement terms
franchisor might not fulfill promises
services provided by franchisor could be more expensive
franchise fee comes off the gross revenue
franchisor in another jurisdiction could create contract enforcement problems
profits may be less than represented or anticipated
misleading statements by franchisor
franchisor could over-saturate market
Finally, remember that a franchise is not for everyone. Thoroughly look at the issues, comparison shop, speak to existing franchisees, compare alternatives, and also get professional advice from a lawyer and accountant before you pay money or commit to any contractual agreement.
