In a franchising agreement, the franchisor ______.

• A. Owns the overarching firm
• B. Sets pricing and marketing across all franchises
• C. Manages daily operations at each franchise
• D. Provides only branding and support

Answer: (A)

In franchising, the franchisor is the owner of the brand and the entire business system that all franchises operate under. That means the franchisor controls the overarching firm—the name, methods, standards, and licenses—while individual operators (franchisees) run their own location using that system. The franchisor provides the playbook, branding, training, and ongoing support, and may set uniform standards and programs, but day-to-day operations at each unit are carried out by the franchisee. So the best choice reflects who owns the whole enterprise, not who runs or manages each store. The other descriptions imply either only branding and support or direct day-to-day management by the franchisor, which isn’t how franchising is structured.