1 CHAPTER 1 SCOPE OF THE STUDY 1.1 INTRODUCTION ...

franchise, and pay royalties on time. Without each party carrying out their responsibility,the whole franchise system will suffer (Maitland, 1991:16).Dealing with problem franchisees can also be considered a disadvantage of a franchisesystem as the franchisees cannot be fired. It also takes additional expense and effort todeal with a non-performing franchisee. It is said to be too expensive and not alwayseasy to enforce the terms of a franchise agreement. A successful franchisee may try tocontrol the direction of the business, because of the interdependent relationship createdby a franchise system (Maitland, 1991:16).d) Future competitive disadvantages createdFranchisees are said to develop an in-depth knowledge of the franchisors businesssystem, thus the potential exists for this knowledge to be used by the franchisee afterthe he or she has left the franchise system (Fortune Manning Lawyers, 2008).4.5.3 Advantages of franchising for the franchiseea) BrandingFranchises are said to usually have a proven track record with an established name,thus enabling a franchisee to benefit from receiving immediate goodwill in their marketplace (Maitland, 1991:69). Franchises therefore offer franchisees a strategic identity thatis not only effective, but has cumulative market impact (Daszkowski One, 2009).According to Daszkowski One (2009) corporate brand Identities are proven. Megabrandssuch as McDonald’s spent millions on their brandings and logos, which thefranchisee gets the full advantage of. A successful brand is said to be one that isremembered, and franchises have some of the most successful brand identities in theworld.93