Franchisor and Franchisee Examples

Franchisors and Franchisees Have Different Responsibilities

There are two main parties involved in every franchise: the franchisor and franchisee. By definition, the franchisor sells the franchisee the right to their trademark, brand, and system in exchange for franchise fees. They put the Franchise Disclosure Document (FDD) together. This is a legal document with 23 items that outline the relationship between the franchisor and franchisee, along with a detailed explanation of the fees to be paid and any other relevant information about the franchise. The franchisee runs the daily operations and receives support and training in exchange for franchise fees and ongoing royalties, along with additional capital that helps the franchise grow.

As you can see, franchisors and franchisees have different roles and responsibilities. 

FRANCHISOR ROLES

Providing Support and Training

Franchising is a good investment because the franchisor provides a franchisee with support and training to succeed. In exchange for franchise fees and ongoing royalties, franchisors will assist franchise owners with everything they need, from site selection to hiring and inventory to advertising.

Creating the Business Model

A benefit of franchising is that a franchise has a proven business model that the franchisee can follow to succeed. In addition to creating this business model, the franchisor controls a franchise’s scalability and can decide how big or small locations are.

Creating Marketing Materials

The only way for the word to get out about a franchise is through marketing campaigns. The franchisor is responsible for national marketing campaigns and providing franchise owners with the materials needed to advertise the business to their local community.

Managing the Brand

The franchisor is responsible for the brand’s image, from its tone to the offered products and services. Brand recognition is desirable to prospective franchise owners.

Planning for the Future

The franchisor has to be goal-oriented and know where they want the business to go. Thus, they have to constantly keep up with industry trends and strive to improve the company where they can.

FRANCHISEE ROLES

Upholding the Brand’s Reputation

Bad press can be detrimental to the business. It is up to the franchise owners to provide the best services and products possible to ensure that customers keep coming back.

Following the Franchise’s Rules and Guidelines

While there is no guaranteed success in franchising, the best way to ensure success is to follow the working system provided to you. This includes having employees wear the required uniform and advertising the business with the provided signage.

Daily Operations of the Business

With brick-and-mortar locations, franchisees are responsible for opening the store, overseeing the location’s sales, and closing the store at the end of the day. This is also true for a home-based business, which can include gutter cleaning and junk removal services. The business owner is ultimately responsible for the location’s success.

Paying Fees to the Franchisor

Franchising is a win-win relationship for franchisees and franchisors. They are reliant on each other's success. The franchisee reaps the rewards of a proven system and the franchisor gets a portion of the profits through ongoing fees.

Finding and Leasing a Building

The location of your business can be a make-or-break decision. You are responsible for finding a location (if brick and mortar) and paying the leasing fees.

Now that you know the difference between franchisors and franchisees, you may want to know some examples of each. Some of the biggest franchisor and franchisee examples are in the food and restaurant industry and include:

Franchisor and franchisee examples that are non-food related include:

Top 100 Franchises

Aamco Logo
Budget Blinds
CertaPro Painters
College Hunks
Fast Signs
Great Clips
Huntington Learning Center
Liberty Tax
Maaco
Molly Maid
Signarama
Urban Air Adventure Park
IFPG Members at Top Golf

Earn Money Selling Franchises

Do you love helping people? Does the idea of being your own boss appeal to you? A career as a Franchise Consultant lets you have it all: a flexible, home-based business with incredible earning potential. And here’s the best part—your work will make a difference! IFPG provides:

  • Over 150+ Hours of Continuing Education
  • 90 Days of Mentorship
  • Exclusive Agreements with Franchises
  • Over 450+ Franchise Members to Present to Clients
  • Access to Leads and CRM to Close Deals

IFPG also provides you with a CFC Certification that designates you as an expert in your field and grants you the recognition that you deserve.

Get Started

Learn More About IFPG

icon

LEARN|About IFPG

IFPG Consultants have one common goal: helping aspiring entrepreneurs realize their dreams of business ownership.
More...

icon

JOIN|#1 Broker Network

IFPG has been ranked #1 Franchise Broker Network 3 years in a row in Entrepreneur Magazine.
More...

icon

GET|Certified with IFPG

Learn how to earn money selling franchises and become a Certified Franchise Consultant with IFPG.
More...

background image

Schedule a Free Tour with IFPG

Red Boswell Headshot

“IFPG’s mission is to serve the franchise industry with innovation, growth and opportunity. We do that by constantly improving and adding to the value we bring our members. Find out why more than 1,300 of the industry’s most respected professionals chose IFPG. Schedule a one-on-one virtual tour with a member of our team. Thank you for the opportunity to serve you.”

Red Boswell, President