What is a Franchisor?

What is a Franchisor?

• A. The business that allows someone to use their name
• B. The person who runs the franchise
• C. The customer
• D. The investor

Answer: (A)

In franchising, the key idea is ownership of the brand and the proven operating system, and licensing that to others. The franchisor is the business that owns the brand, its products, and the way the business operates, and it grants others the right to use that name and system. They provide training, marketing support, and ongoing guidance to keep all locations consistent. The person running a specific franchise location is the franchisee, who applies the franchisor’s system at the local level. The customer is the buyer of the goods or services, and the investor provides capital but does not operate the business. So the description that the franchisor is the business that allows someone to use its name best captures this role.

In franchising, the key idea is ownership of the brand and the proven operating system, and licensing that to others. The franchisor is the business that owns the brand, its products, and the way the business operates, and it grants others the right to use that name and system. They provide training, marketing support, and ongoing guidance to keep all locations consistent. The person running a specific franchise location is the franchisee, who applies the franchisor’s system at the local level. The customer is the buyer of the goods or services, and the investor provides capital but does not operate the business. So the description that the franchisor is the business that allows someone to use its name best captures this role.