Final answer:
Sharing profits with franchisees limits the potential revenue for a franchisor, as they have to divide the earnings that could be fully retained if they operated the establishments directly.
Step-by-step explanation:
The sharing of profits is considered a limitation to becoming a franchisor because it limits revenue for the franchisor. When a business decides to franchise its operations, it typically agrees to share a portion of its profits with its franchisees. This sharing is required to maintain the franchise relationship and allows the franchisees to benefit from using the franchisor's brand and systems. However, this cuts into the potential revenue that the franchisor could otherwise retain if it operated the location directly. Moreover, franchisors must balance the need to maximize their own profits with the need to keep franchisees motivated and financially viable, which may further lead to revenue constraints.