A business franchise is a business that is semi-independent. It pays fees to a parent company. In return, the business gets the exclusive right to sell a certain product or service in a given area. The parent company, or franchiser, develops the products and business system and helps the local franchise owners produce and sell their products. For a small business owner, a franchise has the advantage of a built-in reputation. However, the franchise owner must give up some freedom, and must also pay fees and even a share of earnings.

     A cooperative is a business organization owned and operated by a group of people for their shared benefit. Consumer cooperatives sell merchandise to their members at reduced prices. Cooperatives that provide a service rather than goods are called service cooperatives. Some service cooperatives offer discounted insurance, banking services, health care, legal help, or baby-sitting services. Producer cooperatives are agricultural marketing cooperatives that help members sell their products.

     Nonprofit organizations function like businesses but do not operate for profit. These nonprofit organizations are usually in the business of serving society. Nonprofit organizations include museums, public schools, and YMCAs. The government exempts nonprofit organizations from income taxes. Many nonprofit organizations operate with partial government support. Nonprofit organizations that promote the interests of particular industries are called trade associations.