Is there a difference between a chain and a franchise?
YES, chain and franchise looks in similar but they are quite different to each other.
CHAIN refers to the series of retail outlet, located at different geographical areas, owned by a single company, offering the same products and services. Every store has same products/services, acts according to the parent company rules.
Franchising is a business arrangement, in which a franchisor grants the right to undertake the business of marketing and selling the products or delivering services, to an individual or a group of individuals, using the franchisor’s business model.
In CHAIN system everything looks similar and the products/services will be nearer to everyone which owned by and operated under single central management.
CHARACTERISTICS:
- uniformed price
- supply chain and central management
- different kinds of products
- similar interior and architecture
Examples:
- wall mart
- target
- costco
- dmart
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