Who runs the franchise?

• A. The Franchisee
• B. The Franchisor
• C. The Investor
• D. The Customer

Answer: (A)

The main idea is that day-to-day operations in a franchise are carried out by the person who buys the right to operate under the brand—the franchisee. The franchisee runs the business, hires staff, handles the daily decisions, uses the franchisor’s system and brand, and pays royalties for that support. The franchisor provides the brand, training, and ongoing support, but typically does not operate the individual location. An investor may own the franchise, but unless they are acting as the franchisee, they don’t run it. The customer is the recipient of the product or service, not the one who runs the business.