franchisor (noun, fran-chis-or, \ ˈfræntʃaɪzər \)
Definition: is a company or a business that allows (sells the right to) another individual or company to sell the franchisor’s product or to conduct the business under the franchisor’s name and trademark. The person or the organization that runs a location of a franchisor’s business is referred to as a franchisee. The franchisor remains the sole owner of the product, name, and trademarks, but allows the seller to use those and receives an established fee for that. The most prevalently known type of franchisors is the fast-food business and corporations. Franchisors oftentimes use this method of trade since it allows them to save considerable amounts of budget. Being a franchisor means opening new locations fast without the excessive investments because the franchisees provide the most of funds.
In a Sentence:
- This restaurant is owned by a franchisor, did you know? That’s why they can’t just simply alter the menu. They need to either ask for permission or wait for the franchisor to implement changes.
- If you are willing to expand your business, you can easily become a franchisor. Your chain is already large enough, so you will definitely find more than a couple of franchisees.
Synonyms and related terms: franchisee, business model, business chain, chain stores, franchising, franchise agreement, franchise fee
