Chain business models can be divided into various forms, such as direct selling and joining.

the difference between franchise chain (franchise chain) and direct chain

1. The property right relationship is different. Franchise chain (franchise chain) is a contractual relationship between independent subjects, and the capital of each franchise store is independent of each other, and there is no asset bond with the headquarters; The direct chain stores are all owned by the same capital, and each chain store is owned by the headquarters and directly operated and centrally managed, which is the most essential difference between franchise chains and direct chain stores.

Franchise headquarters needs less funds because it uses other people's funds to rapidly expand the market share of products. In contrast, the development of direct chain stores is more easily restricted by funds and personnel.

2. The legal relationship is different. The relationship between franchisees (headquarters) and franchisees (franchisees) in franchise chains is a contractual relationship. The two parties establish a relationship by concluding a franchise contract, and define their respective rights and obligations through the contract. The relationship between headquarters and branches in direct chain stores is adjusted by internal management system.

3. Different management modes. The core of franchise chain (franchise chain) is the transfer of franchise rights, the franchisor (headquarters) is the transferor, and the franchisee (franchise store) is the receiver. The franchise system is formed by signing a franchise contract between the franchisor and the franchisee. The personnel and financial relations of each franchise store are independent of each other, and the franchisor has no right to interfere.

In the direct chain operation, the headquarters owns all the branches and has the right to decide on all the specific matters in the branch operation. As an employee of the headquarters, the branch manager acts completely according to the will of the headquarters.

4. The business fields involved are not exactly the same. The scope of direct chain is limited to commerce and service industry, while the scope of franchise chain is much broader, except for commerce, retail, service industry, catering industry, manufacturing industry, high-tech information industry and other fields.

Main advantages of franchise mode of chain operation

1. The licensor can achieve the purpose of scale operation only by investing in brand and management experience, which not only can get returns in a short period of time, but also can rapidly upgrade intangible assets.

2. The licensee can save a "learning curve" that he has to go through when starting his own business because he has purchased a successful operating system. Including: selecting profit points, opening markets and other necessary groping processes, reducing business risks.

3. The licensee can own his own company. Take control of your own income and expenditure. The operating start-up cost of the licensee is lower than that of other modes of operation. Therefore, it can recover the investment and make a profit in a short time. The authorized person can get the help and support of experienced authorized person in site selection, design, staff training, market and so on. Make its operation quickly move towards a virtuous circle.

4. The relationship between the licensor and the licensee is not competitive, which is conducive to expanding the market share of * * *.

the essence of chain operation is an effective way for enterprises to use intangible assets for capital operation and realize low-risk capital expansion and scale operation, which is also the fundamental reason for the rapid development of chain operation.