Some of the disadvantages to franchising to franchisor are as follows: 

1. Difficulty in identifying quality franchisees: 

(a) Sometimes the franchisor may find it difficult to identify quality franchisees. 

(b) Even after extending all support towards training and providing capital, poor management may lead to the failure of the franchisee and in turn, which may affect adversely franchisor and the system as a whole. 

2. Legal Regulation: 

(a) Franchising is a regulated activity and requires follow with federal and state franchise laws. 

(b) To successfully establish a franchise, franchisors are required to work with an experienced franchise lawyer to establish a solid blueprint for franchising. 

3. Investment: Every one knows that franchising serves as a source for the capitalized expansion of your business (i.e., franchisees invest in your expansion), the establishment of a franchise system requires the investment of capital to cover legal fees and the cost of establishing a franchising infrastructure.