Franchise or Chain or Both
Many people wonder how a Franchisor and a Franchisee are the same, and how they differ. Owning your own franchise as the franchisor and owning your own part of a franchise as a franchisee are different from one another though obviously closely tied. Both a franchisor and a franchisee have rights, freedoms and independent abilities but each are tied to one another and the extent of those freedom is often covered specifically in a contract. The franchisor, whether an individual or a corporation, own the franchise rights but let individual owners use those rights for a fee.
Many people wonder just how Chains and Franchises are the same, and how they differ.
- A chain is when there are at least two of the same store/business owned by the same person or company entity and are not sold. The parent company owns the business and the rights and hires people to run them. Some Chains franchise (in fact, most do) but they do not have to, keeping some of the locations under corporate control only. You cannot own a chain. (Unless, of course, you start it yourself!)
- A franchise is when the company that owns the rights to a chain, lets people use those rights for a fee but is still involved in the running of the business. It is impossible to have a franchise that is not a part of a chain. But unlike a chain, a Franchisee owns their business and has rights, they are not just an employee.
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Tags: chain, chain business, franchise, Franchise Ownership, franchisee, Franchisor
