Question

Why are the "Standards" the property of the Franchisor and not the Franchisee?

Answer 1

A franchisor has certain authority over the franchisees which help to create certain standards or guidelines to ensure that the franchisee follows the franchisor’s efforts to ensure quality of product. The reputation of the franchisor get affected if the franchisee acts against the standards followed by the franchisor and the franchisee has no effect on its reputation as the franchisee make use of the franchisor’s business name to do business. The reputation as well as the business can be protected only if the franchisee follows the standards set by the franchisor and hence ‘standards’ is a property of franchisor, not the franchisee.