What is the difference between a public franchise and a public enterprise? a public enterprise is owned by the public through its holdings of shares of stock in the enterprise. a public franchise is a firm owned by the government. a public franchise grants a firm the right to be the sole legal provider of a good or service. a public enterprise refers to a service that is provided directly to consumers through the government. both refer to a service provided directly to consumers through the government, but "public franchise" is a term more commonly used in the united states while "public enterprise" is more commonly used in european countries. a public enterprise grants a firm the right to be the sole legal provider of a good or service. a public franchise refers to a service that is provided directly to consumers through the government?