This report investigates the impact of franchisee businesses, specifically focusing on multinational companies like KFC and McDonald's, on local business houses. The study examines both the positive and negative consequences of the franchisee model, including its effects on entrepreneurial ventures, talent acquisition, innovation, and support for local businesses. The research also delves into the challenges faced by local businesses when competing with large franchises, such as expensive legal formalities and potential exploitation by franchisors. The report employs a mixed-methods research design, incorporating deductive reasoning and a descriptive approach. Data collection involves both primary and secondary sources, with a sampling plan that includes employees and managers from both large-scale franchises and local businesses. The analysis utilizes thematic and statistical methods to provide a comprehensive understanding of the franchisee business model's impact.