Which statement correctly identifies the franchiser?

• A. Franchiser is the original business that licenses others.
• B. Franchiser is the owner of each branch within the franchise.
• C. Franchisee is the brand owner who sells licenses.
• D. Franchisee does not need any license.

Answer: (A)

In franchising, the core idea is that the franchiser owns the brand and the proven operating system and licenses others to use them. The franchiser provides the brand, training, and ongoing support, and earns fees and royalties from licensees. The franchisee, as the licensee, runs their own unit under that brand and system, paying for the right to use them. That’s why the statement that the franchiser is the original business that licenses others is the best choice. The franchiser isn’t the owner of each individual branch, and the franchisee is not the brand owner who sells licenses. And without a license, a franchisee can’t operate under that brand.