Question 1

What is the difference between a franchisor and a franchisee?

Accepted Answer

The franchisor owns the brand, the operating system and the intellectual property, and licenses them to others. The franchisee is the independent business owner who pays for that licence, runs the outlet day to day, and follows the franchisor's operating manual and standards.

Question 2

What is the difference between a franchise and a licence?

Accepted Answer

A franchise licenses a complete operating system alongside the brand, with the franchisor setting standards for suppliers, layout and processes. A licence typically covers narrower intellectual property, such as a trademark or a design, and the licensee usually runs its own operation with less day-to-day oversight.

Question 3

Is franchising regulated by a specific law in the UK?

Accepted Answer

No. The UK has no franchise-specific statute, no mandatory disclosure document and no general cooling-off period. Franchise agreements are governed by general contract law, and the competition side falls under the Competition Act 1998. The British Franchise Association's Code of Ethics applies only to its own members.

Question 4

What is the difference between a single-unit and a multi-unit franchise?

Accepted Answer

A single-unit franchisee operates one outlet under the agreement. A multi-unit franchisee operates several, under one agreement or several, and a master franchisee goes further, taking on the right to sub-franchise within a defined territory.

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