The person or business that offers to franchise to other businesses using its trading methods, products and branding.

• A. Franchise
• B. Franchisee
• C. Franchiser
• D. Royalty Fee

Answer: (C)

The name for the person or business that offers to franchise others is the franchiser (also commonly called franchisor). They own the brand, trading methods, and products and grant others the right to use that system to run their own outlets under the same name. The franchiser provides the framework, training, and support that the franchisee will follow, and in return receives ongoing payments such as royalties. The franchisee, by contrast, is the person who buys the rights to operate a particular unit using the franchiser’s brand and system. The royalty fee is the ongoing charge from the franchisee to the franchiser for the continued use of the brand and business system.