Parties in the Franchising System

The franchise system has two independent sides:

Franchisor is the party that owns a product, service or know-how and grants the privilege of selling, distributing or operating the brand or trade name it has created to another business for a certain period of time, in return for a certain price and conditions.

Franchisee is the party that undertakes the use of the franchisor's trade name/brand, professional experience, sectoral knowledge, system and other industrial/intellectual property rights for a certain period of time, in return for a certain price and conditions.