Trade · 6 pages · 12 min
How a franchise splits a brand from a local owner
The franchisor owns the brand and system, while a local owner owns the outlet.
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From the opening
A franchise contract lets a local owner operate an outlet under someone else's brand, using a specified system. The customer sees one name over the door, while the premises, the local payroll, and the local profit or loss sit with the franchisee. The opening covers the mark stays with the franchisor, the shop sits with the local owner, and fees link the two parties.
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Inside
- The mark stays with the franchisor
- The shop sits with the local owner
- Fees link the two parties
- Company stores skip the split
- Where the idea stops applying
- A distinction worth keeping
Sources
- Business-format franchising
- Trademark license to a franchisee