Poor 1, different property rights. Franchising 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 owned by the same capital, and each chain store is owned by the headquarters, with direct operation and centralized management.

Second, 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.

Difference three. Different management modes. The core of franchise chain is the transfer of franchise right, the franchisor is the transferor and the franchisee is the receiver. Franchise system is formed by franchising contract signed by franchisor and franchisee. In the direct chain operation, the head office owns the ownership of each branch and has the right to decide all specific matters in the branch operation.

Difference 4. The business areas 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.

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