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What does distinguish the franchise from other types of networks?

E-commerce, mail order, and door-to-door selling are witnessing great development. Yet, boutiques, from little shops to hypermarkets, remain the traditional symbol of commerce in the eyes of consumers.

There are many types of systems defining the relation between suppliers, distributors and retailers. The franchise is one amongst many other systems.

For a better definition of a franchise, we will briefly describe the different types of collaboration systems:

• Integrated structures (chains, subsidiaries, agencies…) are defined by a hierarchical principle. The seller usually works for the distributor. There is only one decisional centre, and often, only one legal entity.
• Trading groups (Economic Interest Groups, cooperatives) combine, in the heart of autonomous structures, independent enterprises which by adhering, wish to share their know-how, organize common services, and obtain better deals from suppliers.
• The franchise is type of a contract between independent enterprises, such as exclusive distribution (perfumery), concession (automobile), brokerage, commercial agents, partnerships, and commission affiliation.

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