Midas Muffler Franchise: Understanding the Roles of Franchisor and Franchisee
Franchising
Midas Muffler sells franchises to prospective businesspersons who want to use the Midas name and offer Midas products. In a franchise arrangement, Midas would be the Franchisor, and the buyer of the franchise is the Franchisee.
Answer:
C. Franchisor; Franchisee
Explanation:
Franchising
This represents a Business Arrangement where licenses are given to other individuals or businesses by a business owner to trade its products and use its business name. The rights given to use a business owner's trademarks, logos, business systems, products and name. A franchising fee is usually paid in order to be part of a franchise. Businesses that usually run franchises include restaurants, salons and retailers among others.
In a franchise, the Franchisor represents the owner of the business model, franchise, or the trademarks to products. The Franchisee represents the business or individual permitted to use the franchisor's business model, name, products, or trademarks.
In the particular question, Midas is the Franchisor and the buyer of the franchise is the Franchisee.
What are the roles of the Franchisor and Franchisee in a franchise arrangement? The Franchisor represents the owner of the business model, franchise, or trademarks to products, while the Franchisee represents the business or individual permitted to use the franchisor's business model, name, products, or trademarks.