In short, franchisors sell franchise ownership opportunities to prospective franchisees along with licenses to use the trademark and business model. Continue reading to learn more about the differences of being a franchisor vs franchisee.


There are many rewards that come from choosing the right franchisor in the right industry.

People have a lot of misconceptions about what separates a franchisor from a franchisee, but in essence, the franchisor is the entity or corporation that owns the trademarks and business model of a particular brand. The franchisor licenses the use of said trademarks, business model, and operational guidelines to the franchisee in exchange for payment. Some of the attributes of the best franchisors include:

  • Motivation to share their experience and know-how with their franchisees
  • Sharing of the tools, standards, and operational skills to run a successful business
  • Focus on ensuring that each franchisee excels to their highest potential within the brand

Great franchisors have all learned from their mistakes and can share lessons with their franchisees. As opposed to opening your own independent business, with a franchise you can benefit from the knowledge and well-earned expertise of a proven system that has weathered storms and developed strategies for success.

The franchisee is the person(s) or corporation that owns and operates the business using the trademark and business model system licensed from the franchisor. One of the great advantages of learning how to become a franchise owner is the knowledge that you will be going into business for yourself, but you’ll never be alone. The right franchise will provide you with the freedom but also the support you need to succeed.


Take your time to consider the advantages and disadvantages of franchising. If you have committed to the idea of owning a franchise, you still need to pare down your potential investment by industry, concept, startup costs, and various other factors. Finding the right franchise can be an extremely personal process. Choosing the wrong one can turn “franchisor vs franchisee” into a battle of the wills instead of just a Google search. But there are so many rewards that come from choosing the right franchisor in the right industry. Here are some handy things to keep in mind when looking for the right fit:

A Strong Reputation. Whether a franchise has five locations or 500, it’s important to align yourself with a brand that is positively regarded both locally and across public opinion. A good reputation can go a long way to provide built-in business when you first open your doors.

Solid Financial Track Record. It’s worth researching a franchisor’s history of profitability to see whether they’ve managed to maintain financial strength and where or why they have faltered.

A Growing and Sustainable Market. Choose a market that is positioned for opportunity and growth for years to come. A hot and happening concept may be great in the short-term, but franchisors with long-term focus and growth potential will provide you with a richer business experience.

Size Up the Competition. Many franchisors have already done the market research to find the ideal locations for their brand, but it’s equally important for you to do your own research. By getting a sense of what similar business concepts do well in certain areas, which others seem ill-positioned, and what neighborhoods are underserved by certain markets, you can focus on the type of franchise that will work best in your community.

The quality of a franchise brand, its overall reputation, and the distinguishing factors that set it apart from the competition are likely what drew you to it in the first place. You aren’t interested in just any other business opportunity. You want to invest in a growing brand that stands out from the competition and helps you make a long-lasting impression.


As you are selecting the right franchisor, some questions to consider include:

What training and ongoing support should I expect? The right franchisor will offer comprehensive training for franchise owners and a program model for your staff to ensure that everyone is fully prepared to run the business and provide the best possible services for the customers you are slated to provide for.

What sets this brand apart? Within the wider home improvement industry, Home Franchise Concepts stands apart by offering prospective franchise owners the flexibility to run their business as they see fit while providing them the resources to encourage them to expand on their own time.

What is offered in terms of marketing my business? One of the major incentives to starting a franchise is the guaranteed backing of a winning marketing team. As opposed to opening your own independent enterprise, owning a franchise comes with the backing of a known brand and its team of industry experts who are always available to help make your business a success.

What return can I expect to make on my investment? Review the Franchise Disclosure Document (FDD) of whatever brand you choose. Item 19 of the FDD will give you detailed information about the revenue from the previous calendar year reported by franchisees. Not all franchisors provide Item 19, but when they do, it can help give you a fuller picture of the company’s finances.


Home Franchise Concepts brings an excellent selection of businesses to the table, with over 29 years of franchising experience. To learn more about partnering with Home Franchise Concepts, submit a contact form today.