We can often see KFC stores in busy areas, but people don't know which one is a franchise store and which one is a direct store. What's the difference between KFC franchisees and direct stores? There is a big difference between the two. Direct stores are managed by KFC headquarters, while franchisees are managed by franchisees. In addition, there will be some differences between the two modes in other aspects. Next, let's analyze the difference between the two in detail!
KFC: store opening information collection
What's the difference between a KFC franchise store and a direct store?
In the current fast food market, KFC has two business models: direct stores and franchise stores. Entrepreneurs can only choose franchise stores if they want to cooperate. Many investors don't know much about the difference between direct stores and franchise stores, and many people think there is no difference between them. In fact, the two are completely different. Next, let's analyze their differences in detail!
The concept is different: Direct stores are directly managed by KFC, and both the manager and employees are assigned by the headquarters. The headquarters will have direct jurisdiction over the stores, and all direct stores also need to completely obey the command of the brand headquarters. However, the franchise stores have a certain cooperative relationship, and the two sides have no subordinate relationship, but only a certain cooperative relationship. Therefore, joining the shop owner will have great autonomy.
Different risks: When opening a direct store, all the risks will be borne by the headquarters, and the franchisees need to be borne by the entrepreneurs themselves.
Different advantages: Direct stores will accept the unified management of the headquarters, which will make it easier to give full play to the overall advantages, while franchised stores will be more flexible in operation and self-help, and will be weak in collective consciousness and lack of unity with the whole.
Different funds: Direct stores are built by KFC headquarters, so they have strong financial strength behind them, so direct stores have more advantages in developing in the market. Franchise stores are operated by franchisees, which are far weaker than direct stores in terms of financial strength.
Different technologies: KFC's direct stores will have their own R&D team, which can continuously develop all kinds of new delicacies and quickly conduct trial operation in direct stores. The franchise stores need to wait for the headquarters to share the new food production technology step by step, and they have no research and development capabilities.
what's the difference between KFC franchisees and direct stores? As can be seen from the above explanation, there are many differences between direct stores and franchise stores. If you want to open a store like KFC, entrepreneurs can only choose to be its agent, so that they can open their own franchise stores and fight for their own careers.