Franchisor
Also known as: Franchise Company, Franchising Company
A franchisor is the company or entity that owns the brand, trademarks, and business system and grants franchisees the right to operate locations using that system. The franchisor develops the business model, creates operational standards and procedures, provides initial and ongoing training, conducts national marketing, manages the supply chain, and enforces brand consistency across all locations. In exchange, the franchisor collects franchise fees, ongoing royalties, and advertising fund contributions from franchisees. A franchisor's primary assets are its brand equity, operating system, and franchise network. The strength of a franchise system depends heavily on the franchisor's financial stability, management quality, and commitment to supporting franchisee success.
Real-World Example
Chick-fil-A, Inc. is the franchisor of the Chick-fil-A restaurant system. It develops menu items, sets food quality standards, provides operator training at its headquarters, runs national advertising campaigns, and collects a 15% royalty on gross revenue from each of its 3,000+ locations. The company also retains ownership of the real estate and building for most locations, a distinctive model in QSR franchising.
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Explore FDDIQ Franchise DataLast updated: April 2026