1, different property rights. 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; Direct chain stores are all owned by the same capital, and each chain store is owned by the headquarters, with direct operation and centralized management. This is the most essential difference between franchise chain and direct chain. Joining the headquarters needs less money 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 chain 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 the headquarters and branches of direct chain stores is adjusted by the internal management system.

3. Different management modes. The core of franchise chain (franchise chain) is the transfer of franchise right, the franchisor (headquarters) is the transferor and the franchisee (franchise store) is the receiver. Franchise system is formed by franchising contract signed by franchisor and 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 all the specific affairs in the branch operation. As an employee of the headquarters, the branch manager acts according to the will of the headquarters.

4. The business fields involved are not exactly the same. The scope of direct chain is generally limited to commerce and service industry, while the scope of franchise chain (franchise chain) is much wider, which is widely used in manufacturing industry besides commerce, retail, service industry, catering industry, manufacturing industry and high-tech information industry.