Franchise Glossary
Franchisee
The individual or entity that purchases the right to operate a business under the franchisor's brand and system.
A franchisee is the buyer and operator of a franchise unit. In exchange for paying fees and following the franchisor's system, the franchisee gains the right to use the brand name, receive training, and benefit from the franchisor's operational support. Franchisees are independent business owners — not employees of the franchisor — and bear the financial risk of their investment. Success depends on both the strength of the franchise system and the franchisee's execution.
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