Franchises Flashcards
1
Q
What payment is made to the franchisor
A
Royalty
2
Q
What is a franchisor
A
A franchisor is a person or company that grants the license to a third party for the use of the businesses name and products . The franchisor owns the overall rights and trademarks of the company and allows its franchisees to use these rights and trademarks
3
Q
What a a franchisee
A
A franchisee is a small business owner that purchases the right to use an existing business’s trademarks, associated brands, and other proprietary knowledge. In addition to paying an annual franchising fee to the underlying company, the franchisee must also pay a portion of its profits to the franchisor.
