GENERAL KNOWLEDGE

Detailed explanation-1: -Franchisor: The parent company that allows individuals to start and run a business using its trademarks, products and processes, usually for a fee. Franchise fee: The initial fee paid to a franchisor to become a franchisee, outlined in Item 5 of the Franchise Disclosure Document (FDD).

Detailed explanation-2: -A franchisee is a small business that operates under the trademark of a parent company, also known as the franchisor. Throughout inception, the franchisee receives guidance, consultation, and support from the franchisor regarding internal operations, such as hiring, marketing, corporate strategy, and more.

Detailed explanation-3: -A franchise is a business whereby the owner licenses its operations-along with its products, branding, and knowledge-in exchange for a franchise fee. The franchisor is the business that grants licenses to franchisees.

Detailed explanation-4: -The franchisor grants the franchisee the right to operate the business under the franchise system’s trademarks and service marks and enforces the brand standards of the system. Great franchisors provide training to new franchisees and their management, and also provide support in the training of the franchisee’s staff.