• Lack of independence - the franchisor will control many aspects of your business and receive a proportion of your income
• Failure of the franchisor - if this happens your own business may suffer
• Devaluation of trade name - other franchisees could damage the good name of the brand
• Restrictions on the sale of your business - you can only sell your business to someone approved by the franchisor. However, the franchisor is usually willing to agree in your legal contract that this approval should not be withheld unreasonably
• Restrictions on being involved in other businesses - your legal contract will normally stop you from carrying out any business activity other than the franchise.

Important Notice for Franchising