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Other Organizations

In this lesson, students will be able to identify characteristics of franchises, cooperatives, and nonprofit organizations.

Students will be able to identify and/or define the following terms:

Franchise

Cooperative

Nonprofit Organization

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When you visit your local Ben and Jerry’s,you are visiting a franchise.

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Franchise• A franchise is a semi-independent

business.

• The owner of a franchise pays a fee to a parent company in exchange for the right to sell the parent company’s products.

• The owner of the franchise must conform to the parent company’s rules.

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Many familiar restaurants are franchises.

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Cooperative• A cooperative is a business owned and

operated by a group of people for their shared benefit.

• There are consumer cooperatives, service cooperatives, and producer cooperatives.

• Only members of the cooperative can enjoy the benefits of the cooperative.

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Farmers frequently form cooperatives tosell their products.

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Nonprofit Organization

• A nonprofit organization is a business that does not operate for profits.

• Nonprofit organizations serve society.

• The American Red Cross is an example of a nonprofit organization.

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The American Red Cross is a nonprofitorganization.

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There are many different forms of businessorganizations in the United States.

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The Most Common Forms• Sole proprietorships, partnerships, and

corporations are the most common forms of business organizations in the United States.

• However, there are other types of business organizations.

• It is important to understand the different types of business organizations.

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Microsoft is a corporation but notevery business is a corporation.

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Nonprofit organizations serve society.

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All businesses are in the businessof serving customers.

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Questions for Reflection:• Why must the owner of a franchise pay a

fee to a parent company?

• Provide three examples of franchises.

• What is a cooperative?

• Why must a person be a member of a cooperative to benefit from the cooperative’s services?

• Why are nonprofit organizations in the business of serving society?