1. Different models
The franchisor grants its own trademarks, trade names, products, patents and proprietary technologies, business models, etc. to the franchisee in the form of a franchise contract To use, the franchisee shall engage in business activities under the franchisor's unified business model in accordance with the contract and pay corresponding fees to the franchisor.
2. Different management
Because the existence form of franchised enterprises has the basic characteristics of chain operation such as unified image and unified management, it is also called franchise chain. Franchising is a special business model. Franchising was launched in China in the 1990s and has developed rapidly since the beginning. At present, the national franchise model is widely spread in 60 industries. The number of enterprises adopting the franchise model is close to 2,000, and there are nearly 82,000 franchise stores. The entire market is growing at an annual rate of approximately 49%.
3. Different business scopes
It is worth noting that there is no affiliation between the franchisor and the franchisee in franchising. The two parties are not parent companies, nor partners. Nor is it an agent. To be precise, the franchisor authorizes the franchisee to use its trademarks, management techniques and other intellectual property rights for a fee, thereby operating with an overall unified business image and management model.
Extended information:
In the chain franchise model, the party that accepts the brand and technical guidance of the headquarters. Franchise refers to a business model in which the owner of the franchise right allows the franchisee to use its name, trademark, proprietary technology, products, operation and management experience, etc. to engage in business activities for a fee in the form of a contract. Franchising is a franchise of a kind. ?
Franchisees are divided into regional franchisees and individual franchisees. The professional term for franchisees is called franchisees, and their relationship is the right to use the core business stipulated in the contract. In addition, franchising is different from chain operation. There are essential differences between chain operation franchisees and franchisees.