Who is defined as a franchisor?

A franchisor is defined as the entity that grants rights to use its branding, branding elements, and business methodologies to franchisees. This relationship allows franchisees to operate under the trademark or trade name of the franchisor, utilizing their established systems and support while also adhering to specific guidelines set by the franchisor.

In the context of the manufactured housing industry, a franchisor may offer franchisees the ability to sell or rent homes under their brand name, thus expanding their market presence and consistency without the franchisee having to develop a new brand from scratch. This relationship benefits both parties: the franchisor increases its market reach and brand recognition, while the franchisee gains access to established support systems and a recognized name, ultimately enhancing their business potential and profitability.

The other options reflect different roles and responsibilities that do not align with the definition of a franchisor. For instance, an entity responsible for installing or repairing housing systems does not typically engage in branding but rather focuses on technical services. The owner of a factory-built housing structure owns the physical product and business asset but does not necessarily engage in franchising. Similarly, a person who builds mobile homes may be involved in manufacturing but is not dealing with brand licensing or franchising. Thus, the unique characteristics of