Franchise vs Chain Stores

Franchise is a method of distributing products or services involving a franchisor, who establishes the brand's trademark or trade name and a business system and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.

Benefit of Franchising 

The franchisee pays an initial franchise fee to the franchisor for the rights to use their brand in addition to ongoing franchise fees for marketing, royalties and more.

Examples of franchisee are food chains like Dominos, KFC and McDonalds

 

Chain Stores refers to one series of shops owned by one firm and selling selling the same goods.

Benefits of Chain stores

The principal advantages of chain stores includes the ability of the central purchasing unit to buy on favorable terms, lower operating costs, the ability to place advertising for all selling units at one time and the freedom to experiment in one selling unit without risk to the whole operation.    

Examples of Chain Stores includes Wal-Mart, Target, Macy's, Home Depot, Bed Bath and Beyond and The Body Shop.

The differences between Franchise and Chain Stores 

Franchise is not the same as Chain Stores

Franchises are typically owned by local individuals. Chains Stores are owned by corporations and do not sell the rights to use their brand name and proprietary system.

So tell me ladies and gentlemen between this two which one do you prefer to be familiar with and you can start a business of it..???