Three kinds of chain differences: joining the direct free chain

The difference between franchise chain and direct chain

1. Property rights are different. The franchise chain (franchise chain) is the contractual relationship between independent entities. The capital of each franchise store is independent of each other, and there is no asset ties with the headquarters; while the direct chain stores belong to the same capital, and each chain store is owned by the headquarters. Direct operation,

Some franchise brands are centrally managed. This is the most essential difference between the franchise chain and the direct chain. The franchise headquarters needs less funds because it uses the funds of others to rapidly expand the market share of its products. In contrast, the development of direct chains is more restricted by funds and personnel.

2. The legal relationship is different. The relationship between the franchisor (headquarters) and the franchisee (franchise store) in the franchise chain (franchise chain) is a contractual relationship. The two parties establish a relationship by entering into a franchise contract and clarify their respective rights and obligations through the contract. The relationship between the headquarters and branches of the direct chain is adjusted by the internal management system.

3. The management mode is different. The core of the franchise chain (franchise chain) is the transfer of franchise rights. The franchisor (headquarters) is the transferor, the franchisee (franchise store) is the recipient, and the franchise system is the franchise contract signed by the franchisor and the franchisee. Forming. The personnel and financial relationships of each franchise are independent of each other, and the franchisor has no right to interfere. In the direct chain operation, the headquarters has ownership of each branch, and has the right to decide on the specific affairs in the branch operation. The branch manager acts as an employee of the headquarters and acts according to the headquarters.

4. The business areas involved are not identical. The scope of direct chain is generally limited to business and service industries, while the scope of franchise chain (franchise chain) is much broader, except in the fields of commerce, retail, service, catering, manufacturing, high-tech information industry, etc. Manufacturing is also widely used.

The difference between franchise chain and free chain

1. The franchise chain (franchise chain) is established by the headquarters and franchise stores according to the one-on-one franchise contract, and the free chain is the organization that the franchise stores form together according to their will.

2. There is a vertical relationship between the franchise stores of the franchise chain (franchise chain) and the headquarters, and there is no horizontal connection between the franchisees. There is a horizontal connection between free-chain franchisees.

3. The free chain is composed of franchise stores, so the franchise stores can receive a continuous return of profits from the headquarters profits as a strategic investment, while the franchise does not have such a profit return mechanism for the franchisees.

4. Free chain member stores have more autonomy than franchise chain (franchise chain) franchise stores, and the relationship is more loose.

5. The franchise chain (franchise chain) cannot quit freely during the contract period, and the free chain stores can freely withdraw.

6. The free chain headquarters is generally a non-profit organization that does not charge or collect a small amount of membership fees. In the franchise, there are franchise fees and deposits.

7. The franchise system usually relies on certain unique products, services, business methods, trade names, goodwill or patents developed by the franchisor, while the free chain does not have these characteristics.

The so-called chain operation is like a branch company of a parent company. The head office opened a new store. It is generally carried out in one area to form a network. The scale of development will grow stronger.

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