Final answer:
Shared brand recognition is not a drawback of franchising but a benefit, providing franchisees with the advantage of an established brand. Limitations in a franchise arrangement come from reduced control, ongoing fees, and reliance on the franchisor.
Step-by-step explanation:
The shared brand recognition is not a significant drawback from getting into business by entering into a franchise arrangement. On the contrary, shared brand recognition is usually considered an advantage as it allows franchisees to benefit from the established reputation and customer base of the franchisor.
When individuals enter into a franchise arrangement, they typically have to deal with certain limitations such as limited control over business operations and a dependence on the franchisor's decisions. They must also contend with the financial aspects of franchising, which include the initial payment of ongoing franchise fees and royalty payments. These aspects can be restrictive and impact the autonomy of the franchisee in making business decisions.
In contrast, shared brand recognition is a significant positive factor for franchisees as it can increase customer trust and reduce the efforts needed in building a new brand from scratch. This can lead to higher foot traffic and potentially increased sales from the outset of the franchise operation.