What role does a franchisor play in a franchise?

The franchisor plays a crucial role in the franchise system by creating and owning the business model. This includes developing the brand, the operational procedures, and the overall strategy that franchisees must follow. The franchisor provides the methods and systems needed for the franchise to operate successfully, including training, marketing, and support. Essentially, they license their business model to franchisees, allowing them to operate under the established brand and benefit from its reputation.

By owning the business model, the franchisor also retains control over quality and consistency across all franchise locations, ensuring that customers receive a uniform experience regardless of where they are. This relationship is foundational to how franchising works: the franchisee invests in the business model provided by the franchisor and is granted the rights to use it, which can lead to mutual profitability and growth. The ownership of the brand and operational blueprint is what sets the franchisor apart in the franchise relationship.