Who is a Franchisee?

Who is a Franchisee?

• A. The person who runs the franchise
• B. The company that owns the brand
• C. The supplier of goods
• D. The government regulator

Answer: (A)

In a franchise arrangement, a franchisee is the person who runs the franchise. This is the operator who uses the franchisor’s brand and business system, follows the established procedures, and is responsible for day-to-day management, marketing locally, and paying any fees or royalties. The franchisor is the company that owns the brand and provides the system, training, and support. The supplier provides goods to the business, not the one running it, and the government regulator oversees compliance but doesn’t operate the franchise. So the person who actually runs the franchise is the franchisee.

In a franchise arrangement, a franchisee is the person who runs the franchise. This is the operator who uses the franchisor’s brand and business system, follows the established procedures, and is responsible for day-to-day management, marketing locally, and paying any fees or royalties. The franchisor is the company that owns the brand and provides the system, training, and support. The supplier provides goods to the business, not the one running it, and the government regulator oversees compliance but doesn’t operate the franchise. So the person who actually runs the franchise is the franchisee.