Which entity is responsible for overseeing a franchise agreement?

Study for the UofT MGT100 Fundamentals of Management Exam. Practice with quizzes and detailed study materials to excel. Prepare with clear explanations and valuable tips to ace your exam!

The franchisor is responsible for overseeing a franchise agreement. This entity is the originator of the franchise concept and holds the rights to the brand, trademarks, and operational procedures. The franchisor establishes the terms of the franchise agreement, which includes guidelines that the franchisee must follow to operate within the franchise system. This oversight ensures that the franchisees adhere to consistent standards, brand integrity, and operational protocols, which are essential for maintaining the overall image and efficacy of the franchise network.

The franchisor also supports the franchisees by providing training, marketing resources, and ongoing assistance, which are crucial for the success of the franchise operation. In contrast, the franchisee, while responsible for operating the business according to the franchise agreement, does not oversee the overall franchise relationship. A partnership or corporation may be involved in the ownership structure or operations of a specific franchise, but they do not play the central role of overseeing the franchise agreement itself.

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