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.

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Answered by Gonçalo M. Business Studies tutor

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