To what extent does taking out a franchise reduce the benefits of being an independent sole trader?

The main factor resulting into reduced benefits of taking out a franchise for an independent sole trader is the loss of total control. By taking out a franchise, there is a loss of independence in decision making; a reduction in profits due to the royalties paid to the franchisor and the fact that the general success of the product/service/brand now is dependent on the franchisor.

GM
Answered by Gonçalo M. Business Studies tutor

1940 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

In 2007, a business had sales of £10 million in a market with a size of £125 million. In 2017 the business's sales were £12.6 million and its market share was 6%. Calculate the percentage growth in the size of the market between 2007 and 2017. (4 marks)


what is a stakeholder?


What are the advantages and disadvantages of being a Public Limited Company?


If Incomes increase what would happen to demand for bus rides (an inferior good) in the market?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning