What primary role does a franchisor play in a franchise relationship?

The primary role of a franchisor in a franchise relationship is to grant rights to use its branding. This involves providing franchisees with the trademark, logos, and the overall brand identity that they are authorized to use in conducting their business. By licensing their brand, the franchisor enables franchisees to operate under a name that is often well-established and recognized in the market, which can lead to greater customer trust and immediate market presence.

This foundational aspect of franchising is what differentiates it from other business models. The branding rights encompass not just the visual identity but often also a proven business system, operational manuals, and marketing strategies. This support helps franchisees to lower their market entry barriers and provides them with a framework that has typically been honed through the franchisor's experience and successes.

The other options, while relevant to various aspects of franchise operations, do not capture the primary role of the franchisor as effectively. Managing day-to-day operations, representing franchisees legally, or setting product prices can be elements of franchisor-franchisee relationships, but they are secondary to the fundamental act of granting branding rights.