A franchise is the right to use a specific business's name and to sell its products or services in a give territory.
The franchisor is the company that sells the rights and the franchisee is the company that buys the rights. Advantages include:
a nationally recognized name, marketing assistance and lower failure rate. Disadvantages include: a large start up cost, coattail
effects, and restrictions on selling the business. Examples include: Days Inn, a partnership located in Cleveland, OH, and
Subway, a sole proprietorship located in Lawrenceville, NJ.
A cooperative is a business owned and controlled by the people who use it: producers, consumers or workers, who pool
their resources for mutual gain. Members democratically control these businesses by electing a board of directors that
hires professional management. Examples include: Wakefern Food and Citrus World Inc.