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Market Entry Strategies, 2nd Edition by Mario Glowik

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However, the more the franchisee is monitored and controlled by the franchisor, the more questionable becomes the entrepreneurial freedom of the franchisee, which is usually claimed as one of the driving advantages when promoting franchise concepts. Because of the franchise start-up fee – which can easily reach, conditional to the business concept, more than one hundred thousand Euros – the dependency of the franchisee on the franchisor seems to be incomparably higher than vice versa from the franchisor’s perspective. Thus, as in all contractual relationships, the right selection of a partner, which includes the careful evaluation of the business concept, is of vital importance for the involved parties.

Figure 46. Mutual contractual commitments ...

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