🔹 Franchisor = The Original Brand Owner 🍔 🍟
- The franchisor creates the business model, brand, and system (e.g., McDonald’s, Subway, or a boutique fitness studio)
- The franchisor will grant the rights to others (franchisees) to operate under their business’s name.
- The franchisor is also responsible for providing training, branding, systems, and ongoing support to those who invest in their company.
- The franchisor receives upfront franchise fees, along with ongoing royalties.
🧠Think of the franchisor as the “blueprint creator” and brand owner.
🔹 Franchisee = The Business Operator 👱🏼💼👩🏾💼
- The franchisee buys the right to use the franchisor’s brand and business model.
- The franchisee operates a location or unit under the franchisor’s name and brand.
- The franchisee pays both franchise fees and royalties.
- The franchisee receives branding, systems, and support from the franchisor—but still runs their own location as a business owner.
🧠Think of the franchisee as the “local business owner” using the franchisor’s brand and system.
If you are a franchisee in Washington D.C., Maryland, Virginia, or Georgia, and you have questions about registration, click here to speak with a legal expert.
🤝 The Franchisor–Franchisee Relationship
The relationship between franchisor and franchisee is symbiotic:
- Franchisors provide the brand, systems, and support.
- Franchisees bring local market knowledge, capital, and operational execution.
This partnership is designed to allow for rapid brand expansion while enabling entrepreneurs to own and operate their businesses with the backing of an established brand. Understanding these roles is crucial for anyone considering franchising, whether as a franchisor looking to expand or a franchisee aiming to operate a business with a proven model.
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