We appreciate your visit to Why might an independent entrepreneur be dissatisfied with a franchising agreement. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
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.
Learn more about Franchising dissatisfaction here:
https://brainly.com/question/33600454
#SPJ11
Thanks for taking the time to read Why might an independent entrepreneur be dissatisfied with a franchising agreement. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada