A franchisor is a company or individual that owns the rights to a brand and its business model. They allow others, known as franchisees, to operate their own businesses using the franchisor's brand, products, and support. In return, franchisees typically pay an initial fee and ongoing royalties to the franchisor. Franchisees are independent business owners who purchase the right to operate a franchise. They benefit from the established brand recognition and operational support provided by the franchisor. This relationship allows franchisees to leverage a proven business model while contributing to the growth of the franchisor's brand.