What is the difference between a franchise and a franchisor?

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. The Franchise Rule requires franchisors to disclose key operating information to prospective franchisees.

What is business format franchising?

In business format franchising the franchisee has the right to sell the franchisor’s goods or services, but also uses the franchisor’s designs, quality control, and training, and also benefits from his/her advertising and promotions, accounting systems, and operating procedures.

What is a franchise & how does it work?

What Is a Franchise? What is a Franchise? 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.