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. FranchiseKevin B. Murphy, B.S., M.B.A., J.D.