Answer :

Final answer:

Independent entrepreneurs might be dissatisfied with a franchising agreement due to limited autonomy, ongoing costs, and potentially lower profit margins. The lack of control over decision-making, ongoing fees, and restricted profits compared to working independently are some of the main reasons.

Explanation:

An independent entrepreneur might be dissatisfied with a franchising agreement for several reasons. Firstly, a franchising agreement often requires entrepreneurs to follow specific guidelines set out by the franchisor, which might limit the entrepreneur's autonomy. This can be frustrating for an independent entrepreneur who values innovation and freedom, especially if those restrictions impact their ability to meet local demands effectively.

Secondly, franchising often involves ongoing costs, such as franchising fees and profit shares, which would not exist if they were entirely independent. For instance, in the case of Fred in the reference chapters, he loses $10,000 per year compared to working for a corporate firm. This significant financial sacrifice is a common reason for dissatisfaction.

Finally, as suggested by the stories of many inventors throughout history, realizing less profit than expected is another potential point of dissatisfaction. Entrepreneurs may find that franchising, while offering a lower risk route into business, limits their overall profit potential.

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