It is the franchise that is a business in it's own right, so they have responsibility that end. However, you have to consider what it is you are insisting they purchase (plant, equipment, machinery etc) as part of the franchise deal. You need to examine the whole contract. It depends really on the complexity of the franchise. If I was in your job I would manage the policy and offer a supporting capacity and let them manage the risk, but like I say you need to look at what you are expecting from them first.

In terms of law, the owner of the franchise will be responsible for the franchise. In terms of your job remit, this will depend on your contract of employment. From a quality prospective, T&C`s will dictate to the person buying the franchise i.e. the franchise standards shall meet standards set by group and shall be part of annual/bi-annual audit whereby penalties may given for not meeting such standards. Also, the contract may dictate suppliers the franchisee must use for fire provisions etc which is in place for the benefit of both parties.