- Creativity is lost.
- There is the obligation of following the rules and regulations of the franchisors.
- If the franchisee doesn’t pay attention then the franchisor ends up taking most of the profit .
- If the brand is widely known then it gets to be more costly.
- The products that the franchisee is obligated to buy from the franchisor can be costly than the market prices
- If the contract has loopholes then it can be more beneficial fort he franchisor.
- If there are trust problems between the parties then the franchisor can limit the franchisee in many ways.