MANAGEMENT

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: -There is only one ‘franchise owner’ and that is the franchisor, ie the business that developed the concept that’s the subject of the franchise and which owns the rights associated with that concept.

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” is the person or corporation that owns the trade-marks and business model. 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.

Detailed explanation-5: -They do not manage the franchisee’s business, and cannot put the system at risk as a parent would for their children. So, no, a franchisor is not the franchisee’s parent, and the franchisee is not the franchisor’s child. They are businesspeople in a contractual relationship – that is the reality.