BizSugar.com › Franchises › Franchisor vs Franchisee: The Different Roles in a Franchise

The franchise business model lays out the guidelines for selling products or providing services. Before the business launches, the franchise owner has signed a franchise agreement, which is a legal contract.
The franchise agreement gives the franchise owner the rights to operate the business. Is it a slam dunk that the franchise business will be successful?

According to statistics from the Small Business Administration, a franchise business has better odds of success than a solo new business. But that’s only if the franchisor and franchisee understand their roles and stick to the system.

Both sides must be equally dedicated in order to be successful. There is no guarantee for success, even with a thriving, pre-established entity.