Exhibit 13-4 Summary of Benefits and Challenges for Franchisers of Service
Leverages the business format to gain expansion and revenues
Maintains consistency in outlets
Gains knowledge of local markets
Shares financial risk and frees up capital
- Difficulty in maintaining and motivating franchisees
- Highly publicized disputes and conflict
- Possibility of inconsistent quality that can undermine the company name
- Control of customer relationship by intermediary