In a franchise agreement, who is the franchisor?

Prepare for the FBLA Intro to Business Concepts Test with an engaging quiz featuring flashcards and extensive multiple-choice questions. Each question comes with detailed explanations and tips to ensure success. Ace your test with confidence!

In a franchise agreement, the franchisor refers to the parent company that owns the brand, trademark, and overall business model. This entity grants the right to other individuals or companies, known as franchisees, to operate a business under its established brand. The franchisor provides the necessary systems, processes, and support to help the franchisees succeed, including training, marketing strategies, and access to proprietary products.

The franchisor is fundamentally responsible for maintaining the overall brand and ensuring that the franchisees operate in alignment with the company's standards and policies. This relationship is crucial to the uniformity of the brand's presentation and the customer experience across all locations. The other choices do not accurately represent the role of the franchisor; instead, they refer to various support roles that might exist within a franchised business but do not encompass the overarching authority and responsibilities of the franchisor itself.

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