Franchising is when a Franchisor (the owner of a company or business) allows another business (the franchisee) to promote their business.

Franchisor: the company that owns the franchise

Franchisee: the business that is given permission to promote/use the franchisors business.

Features:
customers access the business via the internet (e.g. websites or apps) payments are made electronically (debit cards/ PayPal etc)
*no formal procedures or legal agreements are needed, only the websites have to be secure

benefits to the franchisor:

• fast method of growth
• franchisees are more motivated than employees so success is likely
  

Drawbacks to the franchisor:

• poor franchisees may ruin brand reputation
• cost of supporting franchisees may be high
• profit may be shared with franchisees
  

benefits and drawbacks:
+reduces costs
+wider range
+reduced staffing requirements
+saturated market place

-support systems (if there is an issue, it might take several days for it to be resolved
-lack of interaction
-internet connectivity

benefits to the franisee:

• low risk of failure, as there is already an established idea
• gets support from the franchisor
• set up costs are predictable
• can be benefitted from national marketing campaigns

drawbacks for the franchisee:

• franchisees profit is shared with the franchisor
• low flexibility
• lack of independence

a lifestyle business is a type of business with the aim of collecting enough profit to satisfy the business owner.

features:

• the business will often be small and have one owner
• personal interests are likely to be an influence of the business (like a musician or an artist)
• may come under many different ventures. a musician could do concerts, busking, teaching people to play, etc.
• may be home based

these are organisations, who mainly focus and aim on developing and improving the human and environmental well being instead of making profit for external owners.
sometimes called: not-for-profit organisations

features:

• clear social or environmental mission
  *most incomes are generated through donations or trade
  *re-invest most of their profit
  *they are accountable and transparent
  *not connected to the government

charity: an organisation with specific purposes defined in law to be charitable – and is exclusively for public benefit.

mutual organisations: they are owned by its customers, policy holders, employees or members

co-operatives: They are owned and controlled
by their members. Members can purchase shares that entitle
them to a vote at annual general meetings (AGMs).

(+) personal satisfaction (+) flexible (+) motivating (-) losing finances (-) may be unsuitable for long term