MANAGEMENT

Detailed explanation-1: -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.

Detailed explanation-2: -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-3: -According to the franchising definition, the franchisor is the person who started a successful business and decided to expand by selling clones of the original business. The franchisee is the person who purchases the franchise. For example, Jane opens Kennel Suites, a unique dog boarding business.

Detailed explanation-4: -Examples of well-known franchise business models include McDonald’s (NYSE: MCD), Subway, United Parcel Service (NYSE: UPS), and H&R Block (NYSE: HRB). Franchise business opportunities are available across a wide variety of industries.

Detailed explanation-5: -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.