Elias Pua is interested in owning a fast-food franchise. He likes the idea of following someone else's already proven track record for success. On researching franchises further, however, Pua is disappointed to learn that to open a McDonald's or similar franchise, you must have around $750,000 in liquid assets. Another example of a drawback to owning a franchise is Multiple Choice having to manufacture a product using a formula purchased from the franchisor having to pay for expensive TV advertisements on your own. having to put up with strict management by the franchisor. starting out without any name recognition for your business. selling trademarked products purchased from the franchisor. 3