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The sole reason why a franchise business saw its acceptance is the support mechanism offered by the Franchisor whereby a new Entrepreneur shall get easy access to already running and settled business and the Franchisee need not start from scratch. In return the Franchisee pays a franchise fees to the Franchisor and enjoys the benefits of already established brand and business. However, if the Franchisor fails to honour its commitments as per the Franchise Agreement then the Franchisee is left in a lurch and has a lot more to lose. This further creates an imbalance in the entire business and sometimes the losses can never be made good.
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