Differences

First, the relationship of property rights is different

Franchise stores have a contractual relationship with the brand headquarters, and their capital is independent of each other. There is no asset bond with the headquarters except the relevant details stipulated in the contract.

direct stores are subordinate to the headquarters, owned by the same capital, and directly operated and centrally managed by the headquarters. Comparatively speaking, the development of direct stores is more easily restricted by funds and personnel, but on the other hand, it has more advantages in new product research and development, technology update, popularization and application.

II. Different legal relationships

Franchising is a franchise chain, in which franchisees-brand headquarters and franchisees-establish a relationship through contracts, and the rights and obligations of both parties are clearly defined through contracts. As a result, franchisees have relative flexibility, initiative and autonomy.

direct marketing is a member of the headquarters, which is adjusted by the internal unified management system according to the policy of the headquarters and acts according to the will of the headquarters.

3. Different management modes

The core of franchise stores lies in the transfer of franchise rights by brand headquarters, which can be experienced by the initial fees (franchise fees, management fees and security deposits). Brand headquarters is the transferor and franchise stores are the recipients. A brand can have many franchise stores, and their personnel and finances are independent of each other.

No matter how many direct stores there are, the headquarters has the ownership and decision-making power over them, and their autonomy, creativity and initiative are all limited. Of course, for the headquarters, the structure is huge, there are many people, and the management difficulty coefficient is also high.