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What is the difference between chain stores and franchises
The so-called franchise is to join others in the industry and sales methods, you need to pay the franchise fee, as well as brand fees, advertising costs, etc., you need to sell the other party's designated products and product prices, their own bear the burden of self-sustainable profit and loss chain means that their own investment, their own management, but only the use of the other party's store name and sales of the other party's own products, generally do not limit your price and product diversification, but also to However, you have to pay the brand license fee and other expenses. Chain store refers to some stores with more than one store (McDonald's), this business name is to accept the franchise; but such as Hong Kong Park'n Shop and Wellcome Supermarket, they are the same as the chain store and do not accept the franchise; it is a one-man business. A branch store is for the main store. For example, I created a store, the name is called ***, to later store business continues to expand, has failed to meet the needs of customers, it is necessary to open another point in other streets, the name is called *** the first branch, continue to open it is called *** the second branch, and so on. Chain store refers to a large number of small-scale, decentralized, operating the same type of goods and services of the same brand of retail stores, under the leadership of the headquarters of the organization, to take *** with the same business policy, consistent marketing actions, the implementation of centralized purchasing and decentralized sales of the organic combination of the economies of scale through the standardization of the operation of the joint. For example: McDonald's what is known as joining the so-called franchise, is the business organization, the service label authorized to the franchisee, so that the franchisee can join the headquarters of the image, brand, reputation, etc., in the business of the consumer market, to recruit consumers to consumption. And the franchisee before starting a business, the franchisee headquarters will first know-how, technology ... and other experience, teaching to the franchisee and to assist in starting and operating the business, the two sides must sign a franchise contract to achieve the cause of the profit for the *** with the goal of cooperation; and the franchisee headquarters can be due to the nature of the different franchises and franchisees to the franchisee to charge the franchisee gold, deposit and Rights and so on. For example: fast food. Pearl Milk Tea. In my opinion, the outlet is for the main store, like a branch. And chain stores are not divided into main and secondary, is to occupy the area, there is a leadership center to unified management. And the franchise is other people look favorably on your store, pay you a certain amount of money, in accordance with your business philosophy to copy your store.