Public Franchise Vs Private Franchise

What is Franchise?
Most of us may familiar with this 'Franchise' word.
Generally it a business contract, right and privilege with one or more business unit with the parent of the company. Its an exclusive right to copy exactly and carry the same brand and method of doing business. When we talk about franchise, we cannot run from a system.
A good franchise business must have a good and proven system.
The parent of the business called as "Franchisor" and the childs called "Franchisee".
There are 2 types of franchise business:
1] Public Franchise
2] Private Franchise

1] Public Franchise

It is generally a publically traded. It is a big corporation who has large scale of business support and supply chain. The most popular example of public franchise is McDonald.

Normally to open a public franchise, it requires:

a] Capital -depend on the size of the business (big business = big capital)

b] Premise - need a place to do a business

c] Workers - its not a one man show business to generate big profit

d] Knowledge or know how - normally will be provided by franchisor

e] Contract - legally franchisee is bonded with term and regulation by the franchisor

2] Private Franchise

Most of us may not familiar with this concept. It an opposite to a traditional public franchise where it refer to people authorized by the company to provide products and services. He has more freedom to do the business compare to public franchise where they doesn't require you to have big capital, premise, workers and all those big thing but yet can have an opportunity to have big business. In private franchise, they can be a franchisee and franchisor as well not like public franchise where franchisee is always a franchisee.