What's the difference between home inn and franchise store?

The difference between chain hotel direct stores and franchise stores;

1, with different legal status.

Franchise stores have legal personality, independent name, articles of association and organization, engage in business activities in their own names, and can independently carry out various business activities and engage in various civil activities within their own business scope, and independently bear all consequences and responsibilities brought by the company's actions.

Direct stores are established by the head office at the request of local industrial and commercial departments outside the place of residence. They belong to the branches of the head office, have no legal personality, and have no independent name, articles of association and organization. Although business activities can be carried out independently, they must be carried out in the name of the branches of the head office and only within the scope authorized by the company.

2. The establishment process is different.

Franchise stores are generally established by more than two shareholders in accordance with the provisions of the company law. Registration should comply with the provisions of the Company Law on the conditions for establishment and the mode of capital contribution, and obtain the Business License of Enterprise as a Legal Person from the industrial and commercial department, usually with the name of a limited liability company or a joint stock limited company.

Direct stores are generally set up by the head office in a local industrial and commercial organ outside the place of residence, and obtain a business license. The name is XXX branch in the end.

3. Different operation modes.

When managing operations, the head office will make clear management responsibilities and assessment standards for direct stores, and will also formulate relevant restraint measures, and will not give direct stores more management authority. The operation of direct stores is also the control of the company's inventory by the head office. But there are not so many restrictions on franchise stores.

4. Different control rights.

Direct stores are chain stores that need to be managed by the head office, and are controlled by the head office in terms of operation, investment and management. The so-called chain means that the enterprise will authorize investors, and investors can use the image, brand and word of mouth of the headquarters to attract consumers. In other words, the control of direct stores is in the head office and chain stores are in the hands of investors.

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