Which term describes the owner of each individual branch of a franchise?

Which term describes the owner of each individual branch of a franchise?

• A. Franchiser
• B. Franchisee
• C. Licensing Authority
• D. Joint Venture Partner

Answer: (B)

The owner of each individual branch is the franchisee. In a franchise arrangement, the franchiser (the brand owner) licenses individuals or entities to operate separate units using the brand, system, and support. The franchisee owns and runs their specific branch, pays fees and royalties, and must follow the franchisor’s standards. The franchiser provides the brand and operational model, while the franchisee handles day-to-day management and profits of their unit. Licensing Authority isn’t the right term here because licensing typically covers permission to use IP without operating a full unit, and a Joint Venture Partner refers to a different ownership arrangement where two parties share ownership in a new business.

The owner of each individual branch is the franchisee. In a franchise arrangement, the franchiser (the brand owner) licenses individuals or entities to operate separate units using the brand, system, and support. The franchisee owns and runs their specific branch, pays fees and royalties, and must follow the franchisor’s standards. The franchiser provides the brand and operational model, while the franchisee handles day-to-day management and profits of their unit. Licensing Authority isn’t the right term here because licensing typically covers permission to use IP without operating a full unit, and a Joint Venture Partner refers to a different ownership arrangement where two parties share ownership in a new business.