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Latest post Tue, Mar 3 2009 2:11 PM by MrFranchise. 5 replies.
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Aimjo  +  232610 Mon, 05 Jun 06 12:18 PM
hi! can someone help to define the difference between Franchise vs. Chain Store? Thank you.
Joined on Wed, May 3 2006
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Grammar Geek  +  232675 Mon, 05 Jun 06 02:36 PM

A person who operates a franchise business owns his own business but has to pay to the franchise owner, but a chain is owned by the central corporation and all the employees are employees of the "big" business.

See this: http://msucares.com/business_assistance/homebusiness/q11.html

The franchisee pays the franchisor for the business opportunity and agrees to operate the business according to the franchisor's directions. The franchisor owns all the trademarks, business methods, and supplies that it allows others to use under its contract. The difference between a franchisor's and corporation's operating a chain of stores is that the chain store has store managers who are company employees, whereas the franchise operation is owned and managed by self-employed business people.
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Barbara, who answers in American English. My housekeeping skills attest to the truth of the second law of thermodynamics: Left to themselves, things get more and more random!
Aimjo, 3 yr 160 days ago

thanks for your help!

Aimjo

Anonymous, 338 days ago
No, it is the other way around I believe.  A franchise can be bought by a person and every store could have that one persons rules and standards but a chain store is managed by different people who have to pay the chain owner.
Grammar Geek  +  613397 Wed, 17 Dec 08 08:03 PM

Can you provide a few links to back that up? Your version is the opposite of all the information I've seen.

 

MrFranchise  +  682359 Tue, 03 Mar 09 02:11 PM
There is a franchise article on the Franchise Foundations website discussing this difference, as well as the profitability aspects of operating these different distribution mechanisms.

A franchise chain is usually operated by a network of independently owned franchise owners, although some franchise chains, like McDonalds, penetrate markets with both franchised and company-owned restaurants. This is called dual distribution.

A company-owned chain is a network comprised of locations that are all owned by a single entity. All retail Starbucks locations in the U.S., for example, are owned by Starbucks - except for some in airports and bookstores that may be "licensed."

There is an article on the Franchise Foundations website discussing this difference.

Mr. Franchise
Kevin B. Murphy, B.S., M.B.A., J.D.
Joined on Tue, Mar 3 2009
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