Franchise stores and brand headquarters have a contractual relationship, and their capital is independent of each other. Except for the relevant rules stipulated in the contract, there is no asset bond with the headquarters.
Direct stores are subordinate to the headquarters, owned by the same capital, and directly operated and centrally managed by the headquarters. Comparatively speaking, the development of direct stores is more easily restricted by funds and personnel, but on the other hand, it has advantages in new product research and development, technology update, popularization and application.
Second, the legal relationship is different.
Franchising is a chain operation. Franchisee-brand headquarters and franchisee-franchise stores establish a relationship through contracts, and the rights and obligations of both parties are clearly defined through contracts. In this way, franchisees have relative flexibility, initiative and autonomy.
Direct selling is a member of the headquarters, which is adjusted by the internal unified management system according to the policies of the headquarters and acts according to the will of the headquarters.
Third, the management mode is different.
The core of franchise stores lies in the transfer of franchise rights by brand headquarters, which can be experienced through franchise fees (franchise fees, management fees and security deposits). The brand headquarters is the transferor, and the franchise store is the receiver. A brand can have many franchise stores, and personnel and finance are independent of each other.
However, no matter how many direct stores there are, the headquarters has the ownership and decision-making power, and its autonomy, creativity and initiative are limited. Of course, for the headquarters, the structure is huge, there are many people, and the management difficulty coefficient is also high.
Fourth, the business areas are different.
From the perspective of business scope, direct stores mainly exist in commerce and service industry.
Franchise stores cover a wide range of fields, such as retail, service, catering, education, clothing, beauty, manufacturing, high-tech information and so on. According to the current development situation, it can be predicted that more industries will be encouraged to join in the future, with good prospects.