Who is responsible for new product development?

Most definitely the franchisor, but that doesn’t mean franchisees cannot come up with good ideas.   The franchisor is responsible for developing and continuously improving the business system that is the subject of the franchise. The franchisee is responsible for operating that system correctly on a day-today basis.  Franchisors collect a small percentage of all their franchisees’ incomes and devote some of this to providing central services. The most common of these is development of marketing materials and PR campaigns, but new product research and development is also vital if the network is to remain at the forefront of activity in its sector.  Ideas for new products can come from anywhere, and indeed many franchisors set up a sub-committee of their franchisees to brainstorm and discuss ideas. It’s wellknown franchising folklore that the idea for the Big Mac and Filet-o-Fish came from McDonald’s franchisees.