What are the definitions of franchise terms that you should know before investing in a franchise? Here are the definitions of the franchise terms that we believe are essential to know before you move forward in the franchise world. DEFINITIONS OF KEY FRANCHISE TERMS: FRANCHISOR The franchisor is the company that will be licensing their brand or trademark and their established system to others to operate a business under their trademark or brand utilizing the products or services that they require and in the methods or systems that they establish. Under federal law, the definition requires that there is a fee charged (for anything, including training or products), a trademark licensed and control exercised by the franchisor. FRANCHISEE The franchisee is the individual or company that invests or buys a franchise opportunity so that he, she or it can run a business under the franchisor’s brand and utilizing the franchisor’s system. FRANCHISE FEE This is the fee…
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