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

1813 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

Consider the case for and against carrying out extensive market research[8].


What is the most effective way to answer an essay question in the exam?


Analyse one way in which having seasonal patterns of demand may affect the operational decisions of a business.


Discuss the advantages and disadvantages to working in a team.


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:

© 2025 by IXL Learning