if it is not through the dishonesty or the incompetence of franchisees, why do franchisors fail?
Below are noted the reasons for franchisor failure :
· Under capitalization of the franchisor
· Too rapid expansion of the franchise system
· Poor product or service
· Poor franchisee selection
· Franchisor greed
· External factors
· Devaluation of the Romanian currency
· An increase of import duties
· The withdrawal of an important source of products
· An aggressive and cheaper competitor
· Severe downturn in the economy
