BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Franchisor is the owner of the business and Franchisee is the investor who rent the business
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Franchisor is the investor that rent the business and Franchisee is the owner of the Business
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Franchisor is the owner of the corporation and Franchisee is the partnership that help out the owner
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Franchisor is an investor on a random business given by the Franchisee.
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Detailed explanation-1: -The franchisor is the original or existing business that sells the right to use its name and idea. The franchisee is the individual who purchases the right to sell the franchisor’s goods or services using its existing business model and trademark.
Detailed explanation-2: -The franchisor licenses the use of the trade-mark and business model to the franchisee, usually in exchange for an upfront payment and ongoing royalty payments. The “franchisee” is the person or Corporation that owns and operates the business using the trade-mark and business model system licensed from the franchisor.
Detailed explanation-3: -While a franchisor is an established entrepreneur with a licensed business model, a franchisee is a person or corporation that owns and operates the business using the business model licensed by the franchisor. Franchising describes the business relationship between the franchisor and franchisee.
Detailed explanation-4: -A Mutually Beneficial Relationship The relationship between franchisor and franchisee is unique because it is symbiotic, or mutually beneficial. Both parties have something to gain from the partnership. It is important to franchisors that their franchisees prosper because their success reflects upon the brand.
Detailed explanation-5: -A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system.