Asked by Mitchal Bentley on Sep 24, 2024

​In a franchising relationship

A) ​the franchisor is the principal
B) the agent is the franchisor
C) the franchisor is the agent
D) ​the principal is the franchisee

Franchising Relationship

A business model that involves a franchisor licensing its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.

Franchisor

A company that grants the license to third parties for them to operate a business under the franchisor's brand and business model.

Principal

The original sum of money lent or invested, excluding any profits or interest generated from it.

  • Recognize the relationship between franchisor and franchisee including roles and responsibilities.