From Indonesia originally, Shikha Sungkar developed an interest in entrepreneurship during her college years in the United States. After giving a great deal of thought to the matter, Shikha wants to buy a sub shop franchise called Super Subs. Living in Cedar Falls, Iowa, now, she would have the first Super Subs franchise in the state.

Along with buying the franchise, Shikha wants to purchase the rights to offer and sell Super Subs franchises to other people in the Cedar Falls area. Given these interests, what type of franchise agreement should she negotiate with Super Subs?

For Shikha, what are the advantages and disadvantages of this type of arrangement?