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    Differentiate Branch, Franchise and Subsidiary.: Assignment: Distinction

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    The document differentiates between a branch, franchise, and subsidiary. A branch is an extension of the parent company and performs the same activities. A subsidiary is a separate business owned by a parent company. A franchise offers intellectual property rights to a franchisee and the franchisee operates using the franchiser's business methods under an agreement.

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    Differentiate Branch, Franchise and Subsidiary.: Assignment: Distinction

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    client bugo
    80 views1 page
    The document differentiates between a branch, franchise, and subsidiary. A branch is an extension of the parent company and performs the same activities. A subsidiary is a separate business owned by a parent company. A franchise offers intellectual property rights to a franchisee and the franchisee operates using the franchiser's business methods under an agreement.

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    The document differentiates between a branch, franchise, and subsidiary. A branch is an extension of the parent company and performs the same activities. A subsidiary is a separate business owned by a parent company. A franchise offers intellectual property rights to a franchisee and the franchisee operates using the franchiser's business methods under an agreement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    80 views1 page

    Differentiate Branch, Franchise and Subsidiary.: Assignment: Distinction

    Uploaded by

    client bugo
    The document differentiates between a branch, franchise, and subsidiary. A branch is an extension of the parent company and performs the same activities. A subsidiary is a separate business owned by a parent company. A franchise offers intellectual property rights to a franchisee and the franchisee operates using the franchiser's business methods under an agreement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    ASSIGNMENT: DISTINCTION

    1. Differentiate branch, franchise and subsidiary.

     Branches are a part of the parent organization, which are opened to perform the same
    business operations as performed by the parent company, to increase their reach.
    Branches are not exactly same as the subsidiary company. A subsidiary company is a
    company, whose controlling stake is held by another entity, i.e. the holding company.
    Both branch and subsidiary company are owned by the parent company but are different
    in many ways.

    Branch is defined as an extension of the parent organisation, which is set up at another location,
    to increase their coverage. It carries out the same activities as performed by the head office. The
    officer-in-charge of the branch is known as the branch manager, who is directly responsible for
    the work of the branch, as well as reports to and takes instructions from the head office. Most of
    the banks and financial institutions have branches that are opened to play the agency role. Setting
    up branches at various remote locations, increases the customer base, accessibility and also helps
    in timely and effective distribution of goods and services.

    The term subsidiary company is a business entity, whose ownership and control is in the hands
    of another business enterprise. Usually, when a company buys another company, the buying
    company, is called as holding the company and the company so bought is the subsidiary.
    https://keydifferences.com/difference-between-branch-and-subsidiary.html

     A subsidiary is a separate business owned by the main or parent organisation. The


    level of control that the parent company exerts on the subsidiary body varies from one
    organisation to another and depends on various factors like capital share, managing
    share and staff. While franchising business model is one which offers intellectual
    property rights of the company to the franchisee including trademarks, copyrights and
    trade secrets. Franchisor grants IPs to franchisee during the franchise contract.

    https://www.quora.com/What-is-the-difference-between-a-subsidiary-and-a-franchise

     Branch is sub office of the entity and operated by itself, where franchise is operated or
    run by other party known as franchisee. Franchisee uses the business methods & services
    of the Franchiser against an agreement.

    In case of branch entity itself responsible for business operations and operational decision
    making, where in case of franchise another party is responsible to carry out the business
    operations. In case of branch, investment in operations are made by the entity , while in case of
    franchise the investment for operation is made by the another party (Franchisee).In case of
    branch employees responsible to carry out operations are employed by the entity, while in
    franchise, those employees are employed by the franchisee. In branch there is no profit sharing
    concept with another party, entity enjoy the sole profit from the operations, in case of franchise
    some profit is shared with franchisee. Profit sharing arrangement varies franchise to franchise. In
    case of branch quality is directly maintained by the entity, while in case of franchise quality is
    ensured by effective monitoring.

    (http://accaexample.blospot.com/2015/07/difference-between-franchise-and-branch.html)

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