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. Proprietary Technology

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

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

    A type of license that a party (franchisee) acquires to allow ...
  5. Franchisee

    The party in a franchising agreement that is purchasing the right ...
  6. Brand Equity

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

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center