As a franchise you are using the parent companies name, product, pricing, advertising and much more. So having a parent company is what a franchise is. Not so much a regular business.
I franchise implies that you are using the name and other features of a parent company that you pay a fee to for using their established name. But a regular business does not need a parent company, there are just some tax advantages to having different divisions of a company and to keep track of accounting. For example our company had a division called DG Leasing (initials of the owner) which owned the company vehicles and leased them to the parent company. In fact if might not even have been a division, it may have been a totally separate entity for whatever reason, since it was not listed as a dba (doing business as) of a W-9 for the parent company like some other divisions were.
A "franchise" is a business you buy from the parent company, and can ONLY operate if you follow ALL of their rules……a "regular business" is a business you start YOURSELF, so can run any (legal) way you damn-well please….
You don 't need a "PARENT COMPANY" there is no legal requirement.