The corporation can perform only those activities stated in this charter. The corporation must file reports regularly with the government. This may require the services of specialized and expensive employees. Franchising offers distinct advantages to you if want to own your business but lack the expertise and facilities to do so. You would receive technical advice on design and layout of facilities, market research findings, and help in advertising, buying, and inventory.
Franchises do have disadvantages for the franchisee.
You must do things according to the rules of the parent company. Depending on the company, this may restrict your freedom of action. You must maintain certain standards of service. You can sell only the parent company's product or service. Commonly, the franchise agreement requires the franchisee to pay a percentage of the profits back to the parent company.