What is the difference between Franchise and Corporation?

Certain words are used interchangeably, especially in business. For instance, many people may call a franchise a corporation and vice versa. They may do this because they think it has the same meaning. However, they are different. One main difference is based on ownership. Franchises are owned by independent people or businesses as part of a larger corporation.

A corporation is owned by its stockholders. Corporations are companies that sell services or products. Franchises are small businesses within the same big business. Corporations can have complete control based on the ideas of the shareholders and the owners of the corporation. Franchises are much more limited in what they can do because they can only control the day-to-day operations of each franchise.