1.

Difference between management contract and franchising

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.



Discussion

No Comment Found

Related InterviewSolutions