• The franchisee benefits from the goodwill of the franchisor
• The franchisor gaire more customers
• The advertisement is conducted by the franchisor
• The franchisor may also train the personel of the franchisee
• The franchisee’s capital is increase by the franchisor.

ADVANTAGES

• The name of the franchisee is spread without more investment
• The franchisee gained training from the franchisor
• Less advertisement is required from the franchise
• Customers are guarantee of high quality good
• The franchisor has the right to control certain activity of the franchise

DISADVANTAGES

• Any bad business practice by the franchisee can damage franchisor image
• Training an educating franchise increase the responsibility of the franchisor as franchising fees
• The franchisee would loss control over some business
• No separate identification of franchisee
• Customers have limited choice of product.