(2) Franchise refers to the franchisor's right to own or authorize others to use registered life-saving business resources, corporate logos, patents, proprietary technologies and so on. In franchising, brand and technology are the core, and brands are generally represented by registered trademarks, trade names and corporate logos owned or authorized by franchisers. Technology includes proprietary technology and management technology granted by the franchisor to the franchisee.
Agency refers to a principal-agent relationship. An agent carries out business activities or completes certain affairs for the principal in the name of the principal, and receives commission or remuneration. However, the agent is independent in law, and unless there is an agreement in the agency contract, the agent will not bear the legal consequences of these agency activities.
Franchising and agency are two different modes, and recruiting franchisees is not recruiting agents. Franchising is not the relationship between the principal and the agent. Franchisees cannot operate in the name of franchisees, nor do they operate on behalf of franchisees. Operating results, risks and legal liabilities are usually borne by the franchisee himself (unless otherwise stipulated by law or contract), which is essentially different from agency relationship.
In many industries, there is a sales relationship of goods in franchising, but it is usually a distribution relationship between franchisees and franchisees, not an agency relationship. Franchisees get the price difference benefit by selling the goods provided by franchisees or their suppliers, rather than getting the agency commission.