Difference between vertical marketing system and franchise?

There are several marketing systems at the

core structure of any business. Traditionally, most companies are

based on a vertical marketing system. Franchising companies are

considered one of the most common forms of Contractual Vertical

Marketing Systems.

A vertical marketing system (VMS) refers to

one in which the members of the distribution channel - wholesales,

producer, and retailer - work together to meet consumer needs. A

company that works with a vertical marketing system could be

Campbell's Soup working directly with the producers, the

wholesalers, and later on the retailers that carry their

products.