why might an entrepreneur decide not to take out a franchise agreement but to establish own business?

entrepreneur

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  1. ed Says:

    A franchise does not give the owner total independence.

    Those require that all products and supplies be purchased from the “franchiser”. Those have a markup, beneficial to the franchiser.
    There are advantages in that their national advertising benefits all franchises. Planning and guidance is available as well.
    An independent must perform more detailed plans for oneself. Often must have more business knowledge.

    The freedom of independence to choose suppliers may actually generate more profits, with lower costs. One can choose location with more freedom.

    Franchises will not allow competition too close in proximity to other franchises.