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

The main difference between a franchise and a sole proprietorship in Washington is that a franchise is owned by an individual, while a sole proprietorship is owned by a company. A franchise is established when a company pays a fee to the franchisor to operate under their trademark and system of operations. In return, the franchisee is given the right to sell the franchisor’s products in a specific geographic area. In contrast, a sole proprietorship is owned by a single person or family. The owner is responsible for all aspects of the business, including marketing, hiring and firing, pricing, and other operational decisions. The owner also assumes all risks associated with the business and any profits or losses associated with it. In Washington state, businesses operating as sole proprietorships are required to obtain a valid Business License and Tax Registration Certificate. A key difference between franchises and sole proprietorships is that franchises have access to the franchisor’s resources and support, while sole proprietorships do not. In most cases, franchisees are given access to the franchisor’s trademarks, products, and operational systems and processes. In addition, they may also be given access to specialized training, marketing support, and software services. Furthermore, franchises may be subject to additional rules and regulations imposed by the franchisor that sole proprietorships are not.

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

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