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A subsidiary is a business that is wholly or partially owned by another business, sometimes called the parent company or holding company. The parent company owns sufficient voting stock in the subsidiary -- as a rule, at least 50% -- to give it control over the subsidiary's operations and management.
by FreeAdvice staff. A franchise business is a business in which the owners, or franchisors, sell the rights to their business logo, name, and model to third party retail outlets, owned by independent, third party operators, called franchisees.Franchises are an extremely common way of doing business.nce the business begins operating, the franchisee will generally pay the franchisor an ongoing royalty payment, either on a monthly, quarterly, or annual basis. This payment is usually calculated as a percentage of the franchise operationâs gross sales.