Franchiser

AAA

DEFINITION of 'Franchiser'

A party in a franchising enterprise that ultimately owns the rights, trademarks and proprietary knowledge of the specific business entity. This owner (franchiser) grants the right to operate a branch of the business under the names, brands and all associated aspects of the business to another party (the franchisee) in exchange for an annual fee and a portion of the branch's profits.

INVESTOPEDIA EXPLAINS 'Franchiser'

Becoming a franchiser is a good method for a business with an established brand to potentially expand across different markets and passively earn a good amount of revenues. However, franchisers must be very diligent in assessing potential franchisees and monitoring the quality and performance of existing franchises. Discrepancies of service quality or bad press will not only affect the financial performance of the franchise in question, but will also negatively affect the public's outlook about the entire brand in general.

RELATED TERMS
  1. Goodwill

    An account that can be found in the assets portion of a company's ...
  2. Brand Equity

    The value premium that a company realizes from a product with ...
  3. Trademark

    A symbol, word, phrase, logo, or combination of these that legally ...
  4. Proprietary Technology

    A process, tool, system or similar item that is the property ...
  5. Entrepreneur

    An individual who, rather than working as an employee, runs a ...
  6. Franchise

    A type of license that a party (franchisee) acquires to allow ...
Related Articles
  1. Measuring Company Efficiency
    Fundamental Analysis

    Measuring Company Efficiency

  2. Getting To Know Business Models
    Entrepreneurship

    Getting To Know Business Models

  3. Is Buying A Franchise Wise?
    Entrepreneurship

    Is Buying A Franchise Wise?

  4. Share The Wealth With Franchises
    Personal Finance

    Share The Wealth With Franchises

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center