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ownership and operation (2) business igcse

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Question:

Disadvantages of franchises?

Author: Dakota howells



Answer:

Franchiser success depends on that of the franchise. franchisee has less control over the business franchisee succes depends on franchisers product criticism franchisee must pay annual fee to franchiser over succes, low demand franchisee can't diversify in the ways other firms do to get over problems bulk purchasing agreements cane be restricting if the franchisee is restricted under contract to buying a certain range of products from agreed suppliers


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