What is a Franchisee?

Answer:
A franchisee is an entrepreneur who buys a franchise from the franchiser. A

franchise is a business, usually with a proven business plan, unique methodology or excellent market share, which is sold to independent operators. Common examples are Subway, Molly Maids and AAMCO Transmissions.

These independent operators, or franchisees, pay an upfront fee ranging from several thousand to a couple million dollars as well as an annual royalty. In return franchisees receive training, marketing support, supplies, access to special assistance or financing or any number of other benefits. A franchisee often chooses to purchase a franchise over starting their business from scratch because of the higher success rate, immediate market visibility and comprehensive support available to them.


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