Meaning of franchisee

A franchisee is a party that gets the license to use a company’s name and all its operational processes but as a subsidiary. In return, the franchisee must pay a franchising fee for availing of all the services and the benefits of being under the wing of a bigger setup. As a franchisee, it is their job to ensure that the values, ethics, and quality of their products and services are maintained and ensure an increase in revenues.

In a corporate format franchisee, the franchiser gives the franchisee not just its brand names, goods, and services but also a whole company operating platform. The franchiser often provides the franchisee with site selection, expansion assistance, operating instructions, instruction, brand requirements, quality assurance, a marketing plan, and corporate advising assistance.

The franchisee must pay the franchiser a fee in exchange for the ability to exploit the company's already-established profitability, copyrights, as well as intellectual expertise. The franchiser provides ongoing direction as well as assistance to the franchisee.