{"id":10221,"date":"2024-05-14T09:00:12","date_gmt":"2024-05-14T08:00:12","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/?p=10221"},"modified":"2024-05-27T16:18:38","modified_gmt":"2024-05-27T15:18:38","slug":"the-difference-between-a-franchisor-and-franchisee","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/","title":{"rendered":"The Difference Between a Franchisor and Franchisee"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #101010;color:#101010\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #101010;color:#101010\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#what-is-franchising\" >What is Franchising?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#what-is-the-difference-between-a-franchisee-and-a-franchisor\" >What is the Difference Between a Franchisee and a Franchisor?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#what-is-a-franchisor\" >What is a Franchisor?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#a-proven-business-model\" >A Proven Business Model<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#recognisable-branding\" >Recognisable Branding<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#established-systems-and-suppliers\" >Established systems and suppliers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#training-and-support-personnel\" >Training and support personnel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#franchisor-benefits\" >Franchisor Benefits<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#what-is-a-franchisee\" >What is a Franchisee?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#franchisee-benefits\" >Franchisee Benefits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#reduced-risk\" >Reduced risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#low-cost\" >Low Cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#lending-a-hand\" >Lending a Hand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/#a-support-network\" >A Support Network<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>If considering franchising as a way of escaping the nine-to-five, you\u2019ve probably got a lot of questions. While franchising is a great way to take your first step toward a business empire, there\u2019s a lot to know\u2014and do\u2014before getting started.<\/p>\n<p>In this article, we\u2019ll examine the most important dynamic &#8211; the difference between a <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/what-is-a-franchisor\/\">franchisor<\/a> and <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchisee-definition-and-advantages\/\">franchisee<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-is-franchising\"><\/span>What is Franchising?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Franchising is a business model that involves an individual buying into a larger company in order to open their own branch or office.<\/p>\n<p>For example, an individual could buy into <a title=\"Trustist\" href=\"https:\/\/www.franchiselocal.co.uk\/trustist\/\" target=\"_blank\" rel=\"noopener\">Trustist<\/a>. After an initial fee and training, they would open their own branch of Trustist and take advantage of the company\u2019s branding, suppliers, and marketing efforts.<\/p>\n<p>There is a wide range of franchise businesses available in the UK. The start-up costs can range from <a title=\"a few hundred pounds\" href=\"https:\/\/www.franchiselocal.co.uk\/franchise-under-10k\/\" target=\"_blank\" rel=\"noopener\">a few hundred pounds<\/a> to <a title=\"hundreds of thousands\" href=\"https:\/\/www.franchiselocal.co.uk\/franchise-under-500k\/\" target=\"_blank\" rel=\"noopener\">hundreds of thousands<\/a>, depending on the brand.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" td-center aligncenter wp-image-22283 size-large\" title=\"The Differences Between Franchisor and Franchisee Infographic | Franchise Local\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-1024x811.png\" alt=\"The Differences Between Franchisor and Franchisee Infographic | Franchise Local\" width=\"696\" height=\"551\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-1024x811.png 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-300x237.png 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-768x608.png 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-1536x1216.png 1536w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-2048x1621.png 2048w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-531x420.png 531w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-1061x840.png 1061w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-150x119.png 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-600x475.png 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-696x551.png 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-1392x1102.png 1392w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-1068x845.png 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/The-Differences-Between-Franchisor-and-Franchisee-Infographic-1920x1520.png 1920w\" sizes=\"auto, (max-width: 696px) 100vw, 696px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-is-the-difference-between-a-franchisee-and-a-franchisor\"><\/span>What is the Difference Between a Franchisee and a Franchisor?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Two components make up the bulk of franchising: the franchisor and the franchisee.<\/p>\n<p>For a simple explanation, the franchisor owns a franchise company while the franchisee buys into the franchise, taking on its branding and <a title=\"intellectual property\" href=\"https:\/\/www.franchiselocal.co.uk\/news\/intellectual-property-in-franchising\/\" target=\"_blank\" rel=\"noopener\">intellectual property<\/a>.<\/p>\n<p>Let\u2019s dive into the roles of each and see how they help bring a franchise to life.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-is-a-franchisor\"><\/span>What is a Franchisor?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When a business has achieved a certain amount of success, it\u2019s natural for the owner to look at growth and expansion, both nationally and internationally.<\/p>\n<p>Instead of spending a huge amount of time wading through red tape and spending tons of money, the business owner can become a franchisor.<\/p>\n<p>This means that they will allow individuals to set up branches of the company in new locations and then run them according to pre-set guidelines, thereby becoming a franchisor.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"a-proven-business-model\"><\/span>A Proven Business Model<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In order to be successful, the franchisor\u2019s business model will have been tried and tested in a number of locations and will be easily transferable.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"recognisable-branding\"><\/span>Recognisable Branding<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A franchisor\u2019s business model will usually include distinctive branding, which most people will be easily able to spot on their local High Street, such as <a title=\"McDonald\u2019s\" href=\"https:\/\/www.franchiselocal.co.uk\/news\/what-is-a-mcdonalds-franchise\/\" target=\"_blank\" rel=\"noopener\">McDonald\u2019s<\/a> and <a title=\"Starbucks\" href=\"https:\/\/www.franchiselocal.co.uk\/news\/succeed-with-starbucks-franchise\/\" target=\"_blank\" rel=\"noopener\">Starbucks<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"established-systems-and-suppliers\"><\/span>Established systems and suppliers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The franchisor benefits from bulk purchasing, which lowers costs, and has robust operational guidelines to ensure consistency across all franchise units.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"training-and-support-personnel\"><\/span>Training and support personnel<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In order to make sure that all of the above happens as it should, the franchisor will normally have a training and support team in place to ensure that the running of each individual franchise is consistent and effective.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"franchisor-benefits\"><\/span>Franchisor Benefits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The benefits to the franchisor are:<\/p>\n<ul>\n<li>They earn money in fees<\/li>\n<li>Their financial outlay for expansion is minimal<\/li>\n<li>They can expand quickly<\/li>\n<li>They can expand internationally without hassle<\/li>\n<li>Their brand becomes increasingly well known<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"what-is-a-franchisee\"><\/span>What is a Franchisee?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <a title=\"franchisee\" href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchisee-definition-and-advantages\/\" target=\"_blank\" rel=\"noopener\">franchisee<\/a> is the other side of the equation: the individual who buys into the franchisor\u2019s business.<\/p>\n<p>The franchisee will pay an initial fee to the franchisor, which secures their business and gives them access to the company\u2019s branding, supplier, and training. They will also pay a monthly fee \u2013 usually a percentage of their earnings \u2013 to the franchisor as part of their franchise agreement.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"franchisee-benefits\"><\/span>Franchisee Benefits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When somebody starts their own business from the ground up, there are lots of risks. Choosing a franchise business instead has several benefits, including:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"reduced-risk\"><\/span>Reduced risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As the franchisee is buying into a successful, established business, the risk of failure is significantly reduced.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"low-cost\"><\/span>Low Cost<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Starting your own company is an expensive business with many unexpected expenses.<\/p>\n<p>In comparison, a franchise is a relatively low-cost business \u2013 with <a title=\"many options starting from just a few hundred pounds\" href=\"https:\/\/www.franchiselocal.co.uk\/franchise-under-1k\/\" target=\"_blank\" rel=\"noopener\">many options starting from just a few hundred pounds<\/a> for a start-up fee. These lower costs can make the dream of owning your own business much more accessible.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"lending-a-hand\"><\/span>Lending a Hand<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With any new business, there\u2019s a good chance that you\u2019ll need to secure funding from a bank or other financial organisation. Banks are extremely cautious about handing out loans to new, unheard of businesses; particularly since the beginning of the <a title=\"pandemic\" href=\"https:\/\/www.franchiselocal.co.uk\/industries\/covid-ready-franchises\/\" target=\"_blank\" rel=\"noopener\">pandemic<\/a>.<\/p>\n<p>On the other hand, a franchise business tends to present a much safer bet to a lender because the business already has an established customer base. This means that the franchisee is significantly more likely to be successful with their <a title=\"loan application\" href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/\" target=\"_blank\" rel=\"noopener\">loan application<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"a-support-network\"><\/span>A Support Network<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Setting up in business for yourself can be pretty lonely \u2013 not to mention stressful, particularly when having to manage employees and to make sure that all your legal ducks are in a row.<\/p>\n<p>With a franchise business, you have a ready-made support network of people who know what you\u2019re going through and who can offer real, actionable help and advice and training.<\/p>\n<p>Become a Franchisee with Franchise Local. At <a title=\"Franchise Local\" href=\"https:\/\/www.franchiselocal.co.uk\/\" target=\"_blank\" rel=\"noopener\">Franchise Local<\/a>, you\u2019re just a few steps away from becoming your own franchisee. Take the time to learn about the industry with our expert-written <a title=\"Tips &amp; Advice\" href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchising-tips-and-advice\/\" target=\"_blank\" rel=\"noopener\">Tips &amp; Advice<\/a>. For the essentials, we recommend:<\/p>\n<ul>\n<li><a title=\"How to Open a Franchise with No Money\" href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-start-a-franchise-with-no-money\/\" target=\"_blank\" rel=\"noopener\">How to Open a Franchise with No Money<\/a><\/li>\n<li><a title=\"Starting a Franchise 101\" href=\"https:\/\/www.franchiselocal.co.uk\/news\/starting-a-franchise-101\/\" target=\"_blank\" rel=\"noopener\">Starting a Franchise 101<\/a><\/li>\n<li><a title=\"Why You Need a Franchise Business Plan\" href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchising-tips-and-advice\/\" target=\"_blank\" rel=\"noopener\">Why You Need a Franchise Business Plan<\/a><\/li>\n<\/ul>\n<p>Looking for a comprehensive understanding? Dive into our <a title=\"Ultimate Guide\" href=\"https:\/\/www.franchiselocal.co.uk\/ultimate-guide-to-franchising\/\" target=\"_blank\" rel=\"noopener\">Ultimate Guide<\/a> and learn everything there is to know.<\/p>\n<p>Remember, the franchising world is vast. With the right franchisor, you can take your business prospects to the next level.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If considering franchising as a way of escaping the nine-to-five, you\u2019ve probably got a lot of questions. While franchising is a great way to take your first step toward a business empire, there\u2019s a lot to know\u2014and do\u2014before getting started. In this article, we\u2019ll examine the most important dynamic &#8211; the difference between a franchisor [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":22282,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1467],"tags":[],"class_list":["post-10221","post","type-post","status-publish","format-standard","has-post-thumbnail","category-franchise-information"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/A-man-and-a-woman-reviewing-a-contract-min.png","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/10221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/comments?post=10221"}],"version-history":[{"count":0,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/10221\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/22282"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=10221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=10221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=10221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}