Large and small business firms, private and public organizations, and charitable associations all require a management process to lead, guide, and direct their work activities. Management is the process of planning, organizing, directing, and controlling the business.  Managers in both large and small companies perform similar management tasks. However, the franchisor is unique because the franchisor will soon wear the hats of all small business managers, as well as the hats of the corporate CEO.

The franchisor is a unique individual. The beginning franchisor is usually a small business person often with very limited franchising experience and generally the owner of a small business organization. The franchisor has been a successful small business manager. The franchisor is now striving to become a corporate CEO. This crossing of small and large business management is a unique property and function of the individual called a franchisor.

The beginning franchisor faces the constraints of management that are common to small business firms but generally are of no trouble to the average corporate executive. The small business managers generally have neither sufficient funds nor enough talented people to carry out all the tasks and responsibilities associated with the small business. They also face the grim reality of small bank accounts and a very limited managerial staff. Most entrepreneurs typically lack adequate specialized and support staff. The franchisor begins with such predicament. The franchisor must decide if they are going to develop a successful franchising organization that they will need to develop their management skills and talents and employ additional expert staff to carry out the functions and responsibilities of the franchising organization.