Final answer:
When the actions of other franchises impact your future growth and profitability, it is an example of negative effects. For instance, a competing franchise opening nearby can attract customers away from your business, resulting in decreased sales and profitability. These negative effects can be considered negative externalities in economics.
Step-by-step explanation:
When the actions of other franchises have an impact on your future growth and profitability, this is an example of negative effects.
For example, if a competing franchise opens up nearby, it could attract customers away from your business, leading to a decrease in sales and profitability. These negative effects can also occur in the form of negative externalities in economics, where the actions of one business have a negative impact on another.