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

1728 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

How should a business market a product that has price-inelastic demand and a high income elasticity of demand? (9 marks)


What is break even?


Define the term 'added value'.


Assess the advantages of market penetration


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