Explain the key differences between a franchise system (where each store is franchised) and a chain store operation (where each store isnowned by the company and managed by a hired manager) with respect to the underlying vertical marketing system each uses.

Video on the COVID-19 based logjam in the container shipping industry:

(1) Explain the key differences between a franchise system (where each store is franchised) and a chain store operation (where each store isnowned by the company and managed by a hired manager) with respect to the underlying vertical marketing system each uses.
(2) What are the differences in how franchisees vs. hired managers of chain stores are compensated?
(3) What are the consequences that result from the compensation differences for the motivation of franchisees vs. hired managers?