What is the franchisor?

What is the franchisor?

• A. The business that allows someone to use their name
• B. The person who runs the franchise
• C. The customer
• D. The supplier

Answer: (A)

The franchisor is the original business that owns the brand and the system for operating the business, and it licenses the right to use that name, branding, and operating methods to others. It provides the brand, training, and ongoing support in exchange for fees and adherence to standards. That makes “the business that allows someone to use their name” the best description here. The person who runs the franchise is the franchisee, not the franchisor; the customer buys from the franchise; and the supplier provides goods or services, not the rights to operate under the brand.

The franchisor is the original business that owns the brand and the system for operating the business, and it licenses the right to use that name, branding, and operating methods to others. It provides the brand, training, and ongoing support in exchange for fees and adherence to standards. That makes “the business that allows someone to use their name” the best description here. The person who runs the franchise is the franchisee, not the franchisor; the customer buys from the franchise; and the supplier provides goods or services, not the rights to operate under the brand.