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What’s the difference between a ‘job franchise’ and an ‘investment franchise’?
A ‘job franchise’ is a franchise in which the franchisee himself will actually do the work that provides the service to customers. The franchise usually takes the form of a trade supplying, selling or delivering products or services, it may be mobile, home-based or requiring small office premises. An ‘investment franchise’ is where a franchisee invests a significant amount of money in a franchise such as a hotel. The franchisee will often not work in the franchise at all but will employ a professional management team to run the business. An investment franchisee will usually have experience in managing a large professional team. Sometimes an investment franchisee will run a number of fast food outlets, where not only will the franchisee employ managers for each outlet but also a general manager to oversee the operation.
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