Responsibilities of Franchisee and Franchisor
A franchisee and franchisor share a very cordial relation with each other. To give a definition, a franchise is an investment in which you pay another business and gain right to use its business model and products. A franchisor is the party granting the right, and the franchisee is the party buying the right. So let’s take a look at the responsibilities these entities have to maintain a cordial business model.
- The franchisor typically helps a new franchisee get off the ground, providing advice concerning location, setup, equipment, staffing, supply sourcing, advertising, staff training, etc.
- The franchisor also gives you required training you need to carry out the day to day work.
- He guides you through various facets of the business and helps you with his experience in the field.
- The franchisor also helps you through large-scale advertising campaigns.
- The franchisee pays the franchisor a startup fee and may be a percentage of future gross revenues.
- The franchisee also follows certain rules set by the franchisor with regard to the business.
- The franchisee also need to maintain certain quality standards, keep prices in line with the franchisor’s overall business strategy.