A
Franchise is the right to sell a
well-established good or service produced by a large business on payment of a
royalty plus a percentage of profit.
Franchisee is the owners, who is running the firm and get the benefits
of the well-known brand name of the franchisor.
The franchisor will also get the benefit
of royalty and the percentage of
profit received from the franchisee.
A
Co-operative is a group of
people owns and manages business to enjoy profit. The co-operatives are of different types, they are workers
co-operative, produces co-operative and consumers
co-operative.
The
main features of a co-operative
is that
1)
The ‘workforce’ owns the firm.
2)
They control and manage the firm.
3)
They take decisions through votes.
4)
All the profits are enjoyed by ‘workforce’.
The
major advantages of co-operative
are
1)
The owner-workforce works hard because they can take part in decision making
process.
2)
Each worker will get equal share in the profit.
The
major disadvantages of Co-operatives
are that,
1)
They may find it difficult to expand easily due to lack of
capital, and
2)
Decisions taken by workforce may be wrong due to inexperience or
entrepreneurial ability.
Worker’s cooperatives
A worker cooperative is a cooperative
self-managed by its workers. Means - a firm where every worker-owner
participates in decision making in a democratic fashion, each member has one
voting share.
Producers’ co-operatives
A
firm owned by many producers who cooperate in the areas of buying supplies of
equipment and marketing. Producers' cooperatives originated
in France and Germany in the middle of the 19th century. In the late 19th and
early 20th centuries they grew in other capitalist countries. After the victory
of the October Socialist Revolution, the producers' cooperative became the
easiest and most accessible way to socialism for the artisans and craftsmen.
The producers' cooperative plays an important role in the economy of all
socialist countries of Europe and Asia.
Consumers’ co-operatives
A
consumer cooperative is a cooperative business owned by its customers for their
mutual benefit. It is a form of free enterprise that is oriented toward service
rather than pecuniary profit. Consumers' cooperatives often take the form of
retail outlets owned and operated by their consumers. The customers or
consumers of the goods and/or services the cooperative provides are often also
the individuals who have provided the capital required to launch or purchase
that enterprise.
Back to Home Page Click here