Company Owned Outlet Law and Legal Definition

Company owned outlets are stores or offices established by certain franchisors. It is owned by a franchisor instead of a franchisee. A company owned outlet are identical to the franchised outlets in appearance. The operation of a company owned outlet is in a classical hierarchical mode with a manager at each store to comply with orders coming from the franchisor. Normally, as the chain becomes larger, there will be one or more levels of area managers between the franchisor and the store managers.