GK
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: -A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor’s goods or services under an existing business model and trademark.
Detailed explanation-2: -Franchising Definition: A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration.
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.