Cheenee P.

Peligro

BSA-3

ASSIGNMENT

-Differentiate Branch, Subsidiary and Franchise.

Branches are a part of the parent organization, which are opened to perform the same business
operations as performed by the parent company, to increase their reach. Branch implies an
establishment set up to by parent company, to perform the same business operations, at different
location.

While a subsidiary company is a company, whose controlling stake is held by another entity, i.e. the
holding company. Subsidiary company is understood as the company whose partly or wholly owned by
the parent company. For example, a famous bank X started their share trading company, Y. Here Y may
be a wholly owned subsidiary of X. Sometimes, company Y may jointly be owned by companies X and Z.

On the other hand a franchise is a business agreement between a parent company (franchiser) and one
or many small business entities / individuals (franchisee). For example, bank X started their share trading
business in a franchise model. Companies A, B, and C took franchise. Here the three companies are
separate but all are franchises of X.