Even in the best of times, franchisors have little insight into how well or how poorly their franchisees are doing. But in a downturn, the risks of working in the dark are multiplied. There can be a cumulative effect as franchisees across the network struggle for survival. Franchise failures can hurt the brand, scare off potential new franchisees and end up in costly litigation. For their part, franchisees may worry that their franchises could be pulled if they get behind in royalty ...
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