Owned by two or more
Articles of incorporation are required
Shares all investments and profits
Franchise
A way to expand a business using the investment of others while maintaining control over the name, product quality, and operating procedures
Franchisee
Each partner liable for debts
Owned by one or more shareholders
Managed by a board of directors
Separate legal entity formed by documents
One person receives all profit
Not all owners have direct involvement with the business
Corporations
One person responsible for all debt
Each partner liable for decisions and function
Easy to start but a written agreement required
Easy to start - few legal requirements
Owned & run by 1 person
proprietorship
One person makes decisions
Receives money from the profits of the Franchisee
A written contract granting permission to operate a business to sell products and services in a set way.
Franchiser
Partnership
