How To Start A Franchise FAQ – Franchisee Vs Franchisor
🧩 What's the Difference Between a Franchisee and a Franchisor?
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By
Kloc Curtis
- April 27, 2022
- 12:56 pm
The terms “franchisee” and “franchisor” often get thrown around in business conversations—but what do they really mean, especially in the home inspection industry?
If you’re considering launching your own business, understanding this relationship is key to choosing the right path—and the right support. In this article, we break down how it works, what each party is responsible for, and why this structure can be a powerful tool for business growth.
🔑 Key Takeaways from the Video
You can franchise more than just restaurants.
While most people think of McDonald’s when they hear “franchise,” you can franchise just about any business model—fitness, cleaning, and yes, home inspections.
A franchisor creates and licenses a complete business model.
This includes training, branding, intellectual property, marketing systems, pricing structures, lead generation strategies, report templates, and operational documents.
A franchisee invests in that model to operate locally.
They benefit from an established brand, support systems, and ongoing coaching while running their own local business.
Franchising reduces risk through shared knowledge.
While most people think of McDonald’s when they hear “franchise,” you can franchise just about any business model—fitness, cleaning, and yes, home inspections.
There are legal structures to protect both parties.
The Franchise Disclosure Document (FDD) is a federally required document detailing every aspect of the opportunity. The franchise agreement outlines expectations, royalties, and terms—think of it like a business prenup.
The franchisor is financially invested in your success.
Royalties (in our case, just 7%) mean your growth benefits the franchisor, so it’s in our best interest to support you long-term.
Real results prove the model works.
Curtis shares actual revenue numbers:
$235K in Year 1
$375K in Year 2
$550K in Year 3
$1.55M in Year 5
🔍 Frequently Asked Questions (FAQs)
What is a franchisor?
A franchisor is the individual or company that owns the brand, systems, and business model—and licenses it to franchisees.
What is a franchisee?
A franchisee is a local business owner who buys the right to use the franchisor’s systems and brand to operate a business in a defined territory.
Who controls the business?
The franchisee runs the local business, but agrees to follow the franchisor’s systems and standards to ensure brand consistency and proven results.
What documents are required to buy a franchise?
You’ll review a Franchise Disclosure Document (FDD) and sign a Franchise Agreement, which outlines terms, responsibilities, and expectations.
What support does a franchisor provide?
Training, marketing, branding, SEO, CRM templates, inspector training, business coaching, and more. At Inspections Over Coffee, everything is set up to make launch and growth smoother.
🚀 Ready to Be a Franchisee Instead of Going Solo?
If you’re ready to run your own business but want the backing of proven systems, coaching, and a brand built on real results, becoming a franchisee could be the smartest move you make.