The Difference between a Franchisee and Franchisor

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The franchisor and franchisee are the two main players in a franchised structure. However, they play different, nevertheless interdependent, roles. Let’s understand the difference between a franchisee and franchisor, what their roles and responsibilities are.

Role of the Franchisor

Typically an entrepreneur, the franchisor lays the foundation to create an established and successful business. The franchisor brings the following assets to the franchisee/franchisor relationship:

1.   A Successful Business Model

To be a franchisor, you need to have a proven franchises UK business model that works irrefutably. The consumers should recognize and seek your brand.

2. Recognized Trademark

Among the valuable assets a franchisor has attained through trial and error and extensive research are registered trademarks. Establishing your trademark and obtaining the federal rights requires a good amount of time and a great deal of dedication for franchises UK such as food  franchises UK and coffee  franchises

3.   A well-established Business System

The business model of the franchise proves to be successful due to the system established by the franchisor in operating the business. The manner in which the franchisor operated the business is what has produced impressive results. The franchisor sets the groundwork in the form of an established business model, which franchisees are to follow.

4.   Support and Training

Perhaps the most significant contributions the franchisor offers is their on-going support and extensive training. Under the direction of an experienced and successful entrepreneur, franchisees are able to learn from someone who has achieved proven success.

Role of the Franchisee

Fundamentally, the role of the franchisee is to replicate the franchisor’s proven business model with the purpose of expanding into a local or national market. This role requires significant work and investment, including:

1.   Making the Payment of Franchise Fees

In order to attain the rights of establishing a franchised business, new franchises UK are obligated to pay a fee.

2. Management of Franchise in their Location

Franchisees adopt the business systems, know-how and training of the franchisor, and put it all into practice in their franchise location.

Responsibilities of the Franchisor

The franchisor has many duties to its franchisee:

  1. Forming a business theory, brand, plan, practises and procedures.
  2. Creating trademarks, logos, and other patented content and graphics.
  3. Conducting ongoing training programs given to franchisees along with their employees.
  4. Providing marketing, public relations, and advertising support.
  5. Exploring opportunities of developing new services or products that can be vended through franchisees.
  6. Forming relationships with suppliers and vendors.

Responsibilities of the Franchisee

As a franchisee, you will be expected to handle the day-to-day operations of the business. These are the responsibilities of a franchisee:

  1. Hiring and firing of personnel.
  2. Training the new staff regarding the system of the franchise and their job duties.
  3. Managing accounts and finances, which also consist of paying bills and meeting payroll.
  4. Selling services or products the franchise offers.
  5. Ensuring quality control is met.
  6. Engaging in promotional and marketing activities.
  7. Renting and maintaining the physical structure for the business.

 

Find the work-life balance you always wanted. Get in touch with Quality Franchise Association for more information on how to become a franchisee.

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