What is the difference between a franchise and a sole proprietorship?

The primary difference between a franchise and a sole proprietorship is who owns and runs the business. In a franchise, the owner of the business (the franchisor) grants the rights to another business owner (the franchisee) to use their brand, products, and services to operate a business. The franchisor typically provides the franchisee with some support, such as training, supplies, and advice. The franchisee is responsible for running the business, hiring employees, maintaining the business, and making profits. A sole proprietorship is a business owned and operated by a single individual, who is solely responsible for its success or failure. This individual is responsible for all aspects of the business, such as bookkeeping, management, filing taxes, and other administrative duties. The sole proprietor is also the one to bear the risk of any losses their business may incur and is entitled to any profits made by the business. In summary, the main difference between a franchise and a sole proprietorship is who owns and runs the business, as well as the support provided to the business. Franchises are typically owned by the franchisor, who provides support to the franchisee, while sole proprietorships are owned and operated by a single individual who is responsible for all aspects of the business. Both franchise and sole proprietorship businesses are regulated differently in North Carolina under state business regulation law.

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What is the difference between a franchise and a sole proprietorship?

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