Who is the company that grants permission to another company to use its brand name?

• A. Franchisee
• B. Franchisor
• C. Franchise Holder
• D. Business Partner

Answer: (B)

The company that grants permission to another company to use its brand name is known as the franchisor. In a franchising arrangement, the franchisor licenses its brand, trademarks, and business model to the franchisee, who operates a business under the franchisor's established brand. This arrangement allows the franchisee to benefit from the established reputation and resources of the franchisor, facilitating easier entry into the market. The franchisor typically provides training, support, and access to proprietary systems that the franchisee can utilize in their operations. This structure creates a mutually beneficial relationship where the franchisor expands its brand presence, while the franchisee gains from the franchisor's established successes and customer base.