franchise or chain store

[keannu]

What do you think is the difference between "franchise" and "chain store"? Is "franchise" owned by a contractor to pay some margin to the headquarter, while "chain store" is owned by the headquarter"?

97)If you go into any successful franchise or chain store with an open mind, // it's easy to see why they are successful.

 

[SoothingDave]

A "chain" means there are multiple locations for a store. The various locations could be owned by the company or by franchises (or some of each).

A "franchise" means that their are people who enter into an arrangement with a company to operate a store using the company's products and brand name/processes. There are complicated contracts involved.

 

[Barb_D]

See this: http://www.englishforums.com/English/FranchiseVsChainStore/cnzxq/post.htm
http://smallbusiness.chron.com/difference-between-chain-franchised-restaurant-17288.html

 

[SoothingDave]

I think that there is probably one set of definitions used by business/financial people and one in common use.

If I say that someplace is a "chain" I know I am not making any sort of statement about the ownership. Just that there are multiple locations. Is Chipotle or Five Guys company owned or franchised? I don't know. But I would say they are both restaurant chains.

 

[Barb_D]

I agree that if an average person says "chain" they probably do not care about ownership. I say that when we go on vacation, we try hard to avoid the "chain" restaurants and eat somewhere local, and I'm not thinking about ownership.

However, if someone says "franchise" they probably are thinking about ownership, in which case drawing the distinction is worthwhile.
And if a business person uses the word "chain" they do mean "chain," as you indicate above.