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what is the difference between joint venture and franchisee?
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A joint venture is a relatively equal relationship among a few individuals, or the equivalent in corporations. A franchise is more like a parent/child relationship. The corporate parent provides a lot of assistance in marketing and advertising, either produces the product itself or contracts for it, and exercises a great deal of control over the individual franchise. The local franchise has the advantage of being their own boss at the local level to some extent, and they often make a great deal of money, but they have very little autonomy. Corporate headquarters exercises an enormous amount of control in many cases, somewhat less in others, but invariably more than a joint venture.
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LikeDislikeA franchisee would buy into a company, and own his own store, under the authority of the Franchise, say for example Subway.
A joint venture would be if two companies, say Subway, and Mcdonalds joined together to make a new sandwitch together. That would be done at the corporate level, and would have little to do with people who own individual franchises.
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LikeDislikea joint venture means when two people or companies do something, or start a business together.
A franchisee, lets say you want to start a K.F.C, you can’t actually own K.F.C, you go to K.F.C, you pay them to own one of their stores, and you have to buy stock from them, or pay them royalties, you never actually own the store, if you breach contract you can be closed down by the owning company. You do make profit according to how much you sell, you just either pay royalties or buy the product from the owners.
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LikeDislikeone line of technical difference is ownership. joint venture means, you’re the investor on common stocks, hence you’re the owner but in franchisee, you’re selling (transfering) your rights to others, however, you do have certain contractual control over the firm, but you’re not the real owner of the firm.
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