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Franchise · Understanding Franchising

What are the roles of a Franchisee and a Franchisor?

Franchisee:

  • Follow the franchisor's methods, guidelines procedures as laid out in their training and operations manuals
  • Pay a franchise fee and ongoing royalties for the right to use the Franchisor's trademarks and system
  • Handle administrative aspects of business (accounting, payroll, HR, etc.)
  • Dedicate the appropriate amount of time and effort required and maintain communication with the Franchisor to make the franchise successful.

Franchisor:

  • Provide initial and on-going training, operating systems and support to the Franchisees to help their businesses thrive
  • Brand advertising (broadly), and assistance to Franchisees for their local advertising
  • Protect the brand by ensuring that all Franchisees are maintaining consistent quality
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