Answer:
the options are missing, but I can list several disadvantages or downsides of owning a franchise:
- When you buy a franchise you enter a formal contract that requires you to perform different obligations and failing to perform can result in legal and economic problems (similar to all contracts signed).
- The franchise contract generally specifies a certain amount of years, and even if you are able to perform very well, nothing can assure you that the contract will be renewed.
- When you buy a franchise, you must follow all the rules, procedures and guidelines given to you by the franchisor, i.e. you own a business but someone else tells you what to do.
- These orders and restrictions given by the franchisor include what you can or cannot sell, and who will be your vendors (suppliers).
- Even if you do great, other franchisees might not operate properly and that will negatively affect your business.
- You have to pay royalties (a % of your gains) to the franchisor.