The chain business model is divided into direct management and franchise and other forms. Among them, the hosting chain mode is the most advanced business model of today's chain enterprises have been verified, with high stability, low risk, fast expansion characteristics.

Direct Chain

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

1, different property rights. Franchise chain (franchise chain) is a contractual relationship between independent subjects, the capital of each franchised franchise is independent of each other, and there is no asset bond between the headquarters; while the direct chain belongs to the same capital all, each chain by the headquarters of all the stores and direct operations, centralized management. This is the most essential difference between the franchise chain and direct chain. Franchise headquarters as a result of the use of other people's capital to rapidly expand the market share of the product, the capital required is less. In contrast, the development of direct chain is more likely to be limited by capital and personnel.

2, the legal relationship is different. Franchise chain (franchise chain) in the franchisor (headquarters) and the relationship between the franchisee (franchise) is a contractual relationship, the two sides through the conclusion of the franchise contract to establish a relationship, and through the contract to clarify their rights and obligations. The relationship between the headquarters and the branch in the direct chain is adjusted by the internal management system.

3, different management modes. Franchise chain (franchise chain) is the core of the franchise transfer, the franchisor (headquarters) is the transfer, the franchisee (franchise) is the recipient, the franchise system is formed through the franchisor and the franchisee signed a franchise contract. 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 of the branch has the ownership of each branch, the branch operation of the specific affairs have the right to decide, branch manager as an employee of the headquarters, fully in accordance with the will of the headquarters.

4, the business areas involved are not identical. The scope of direct chain is generally limited to the commercial and service industries, while the scope of the franchise chain (franchise chain) is much broader, in addition to commercial, retail, service industry, catering, manufacturing, high-tech information industry and other fields.