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

1637 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

What is Customer Service and why is it important for a business?


How can Business Studies help me?


How do you work out breakeven?


Analyse three benefi ts of Boojum Limited operating as a private limited company. (10)


We're here to help

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

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences