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Answer» MANAGEMENT CONTRACT.
A management contract is a service contract. The manager manages the day to day operations of a business, in EXCHANGE for agreed upon compensation and BENEFITS. The manager need not be an owner of the business.
FRANCHISE.
A franchise contract is a licensing contract. A franchisee owns a business, but pays a proportion of profits, and conducts certain business operations in an agreed upon manner, in exchange for the permission to use the FRANCHISOR's business model and intellectual property.
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