what are the diffrences between a sole trader and a franchise business?

Answer 1

They're 2 different things altogether. A sole trader is just one form of ownership. You can run a business as a sole trader, as a partnership, as a corporation, etc and each of these can be a franchisee and operate a franchise business. A franchise business is one where you pay a franchise fee to operate a business set up by someone else and which probably already has a well known name, like 7-Eleven. Let's say someone wants to run a 7-Eleven in his town. He can set up a sole proprietorship, or a partnership, etc and apply to the franchisor to be a franchisee.