In a franchise agreement, the company that grants brand and system rights is called the franchisor.
The franchisor owns or controls the business concept, trademarks, operating methods, and related know-how. It authorizes another business to use those assets, usually in exchange for an initial fee, continuing royalties, or both. The agreement also commonly sets standards for products, premises, training, marketing, and customer service.
The other party is the franchisee, which operates the outlet or business under the franchisor’s system. The franchisor is not normally a broker: a broker may arrange deals but does not necessarily own the brand or operating model. “Licensor” is a broader term and can describe a party granting intellectual-property rights, but “franchisor” is the precise term for a franchising relationship.
Franchising lets a brand expand using franchisees’ capital and local operating effort. In return, the franchisor typically supplies training, manuals, marketing support, approved suppliers, and ongoing oversight.