What is a major disadvantage faced by franchisers?

Franchisers indeed face significant challenges related to maintaining business control over individual franchise locations. When a franchisee operates a franchise, they are often given a degree of autonomy in managing that business. If a franchisee fails, either due to poor management, inadequate marketing, or a lack of resources, it can directly impact the franchiser's overall brand reputation and operational integrity. This scenario highlights the risk franchisers take when granting rights to franchisees, as one franchisee's failure can lead to diminished consumer trust in the brand as a whole.

This loss of control is a notable risk because while the franchiser provides the brand and operational model, they may have limited authority over day-to-day decisions made by the franchisee. The poor performance of a single franchise can lead to lost revenue, negative publicity, and a potential decline in the overall performance of the brand. It demonstrates the delicate balance franchisers must maintain in ensuring franchisees adhere to the standards and practices that uphold the brand's reputation.

In contrast, the other options do not accurately represent the typical challenges franchisers face. The benefit of retaining profits, absence of reputation risk, and personal management of each franchise location typically do not apply to franchising models, where independence and brand management can significantly