| Aspect | Franchisor | Franchisee |
|---|
| Role | Owns the overall franchise system, develops brand, provides support | Operates a specific franchise location under the franchisor’s brand and system |
| Credentials | Business ownership, franchise development experience | Business management, local market knowledge |
| Work Environment | Corporate headquarters, franchise support offices | Individual franchise location |
| Industry Usage | Develops and manages franchise network | Runs day-to-day operations of a franchise unit |
The main difference is that a franchisor owns and manages the franchise system, while a franchisee operates a specific franchise location under the franchisor’s brand. The franchisor provides support, training, and branding, whereas the franchisee focuses on local operations and customer service.