What Is The Difference Between A Sole Trader And A Franchise?


5 Answers

Anonymous Profile
Anonymous answered
A sole trader is when a business is set up by one person.
A Franchise is when you buy in to an existing company. An example of this is McDonalds, you can buy in to their business and basically open your own McDonalds.

Buying in to a franchise has advantages like, Existing and well known company. And also you will have limated liability, this means if you lose money you will only lose what you put in.
Where as a sole trader has unlimated liability, so you will have to find the funds your self if you lose money.

Also with a franchise the company you have bought in to will provide money where as sole trader as you are alone you will be expected to find the funds your self.

However the disadvantage of a Franchise is you will not have the final decision, the franchiser will have the last word. This is an advantage for a sole trader as all decisions are all yours to make.
Sidharth Kaistha Profile

According to me franchising means giving your own name to the partner company who want to sell products. For example in Pharmaceutical industry there is a concept of PCD Pharma franchise monopoly or non monopoly basis. Which means you are creating distributors who are using your brand name and earn their living. In PCD franchise case there is no sale targets.

Hariom  Rawat Profile
Hariom Rawat , Madical Representative, answered

As per my knowledge here is the big difference sole trader
and franchise term:

Sole trader is the form of business structure, it’s easy to simple
and affordable to set up. A sole trader is legally responsible for all aspects of business or service. As a sole trader you’ll make all decisions of your business.

In franchise giving the own name to the partner company which want to sell own products. From the past years pharmaceutical industry on
the boom, in which India’s WHO-GMP-ISO certified Pharma franchise companies offering franchise on monopoly and non-monopoly basis.

Anonymous Profile
Anonymous answered
Two businesses you choose should be very different from each other, for example a national or multinational retail
  outlet compared to a local privately-owned outlet. This will help you get a better mark for your work as you will have
  more to write about.

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