Difference between Franchise and branches
1. Operation
Branches operation is carried out by the entity itself. In Franchise
the operation is carried out by other party. However franchisee uses the
methods and process of the franchiser.
2. Investment
In Branches the investment is made by the entity where in
franchise the investment is made by the franchisee.
3. Employee
In Branches the employees are at the payroll of the entity
where in case of franchise employee cost are born by franchisee.
4. Profit Sharing
In branch system there no profit sharing as operation is
conducted by entity itself. franchise arrangement some portion of profit is share
with franchisee.
5. Quality
In branches quality is directly controlled by the entity
while in franchise arrangement quality is maintained through monitoring.
No comments:
Post a Comment