student asking question

What's the difference between "chain" and "franchise"? Are they interchangeable?

teacher

Native speaker’s answer

Rebecca

"Chains" and "franchises" are very similar and both refer to having multiple business locations, however there is a slight difference between them and they are not totally interchangeable. A "chain" refers to a single company which owns many different separate location businesses. In a "franchise", different locations are owned separately by individuals and not by a single company.

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