Franchisee: meaning, definitions and examples
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franchisee
[ˈfrænˌtʃaɪziː ]
Definition
business relationship
A franchisee is an individual or company that is granted the right to operate a business under the franchisor's brand and systems. This arrangement allows the franchisee to sell products or services using the franchisor's trademark, business model, and support systems. In return, the franchisee typically pays a franchise fee and ongoing royalties to the franchisor. This relationship is governed by a franchise agreement, outlining the rights and responsibilities of both parties. Franchisees benefit from operating under an established brand, which can reduce the risks associated with starting a new business from scratch.
Synonyms
business licensee, franchise owner, franchised operator.
Examples of usage
- The franchisee opened a new location in the city.
- As a franchisee, she had access to extensive training.
- The franchisee must adhere to the brand's standards.
- Many franchisees find success with the right support.
- A franchisee can operate independently while using a well-known brand.
Interesting Facts
Etymology
- The word comes from 'franchise,' which means freedom or privilege, originating from the Old French word 'franchir.'
- The term has been used in English since the 15th century to refer to rights granted by a ruler.
Business
- There are over 770,000 franchise establishments in the United States, contributing about $674 billion to the economy.
- Franchising allows individuals to start a business with an existing brand, reducing the risks associated with starting from scratch.
Pop Culture
- Popular franchises like McDonald's and Subway use the franchise model to grow their brand globally.
- Many famous restaurants and retail chains operate as franchises, allowing local owners to run businesses under their brand.
Legal Aspects
- Franchise agreements are legally binding documents that outline the rights and responsibilities of both the franchisor and franchisee.
- Some countries have strict laws governing franchises, requiring detailed disclosures to protect franchisees.
Education
- Many business schools offer courses on franchising, teaching future entrepreneurs how to successfully operate as a franchisee.
- Understanding the franchise model is crucial for aspiring business owners who want to partner with established companies.
Translations
Translations of the word "franchisee" in other languages:
🇵🇹 franqueado
🇮🇳 फ्रैंचाइजी लेने वाला
🇩🇪 Franchisenehmer
🇮🇩 penerima waralaba
🇺🇦 франчайзі
🇵🇱 franczyzobiorca
🇯🇵 フランチャイジー
🇫🇷 franchisé
🇪🇸 franquiciado
🇹🇷 franchise alan
🇰🇷 프랜차이즈 가맹점
🇸🇦 امتياز
🇨🇿 franšízant
🇸🇰 franšízant
🇨🇳 特许经营者
🇸🇮 franšizojemalec
🇮🇸 franchísa
🇰🇿 франшиза алушы
🇬🇪 ფრანჩაიზი
🇦🇿 franşiz alan
🇲🇽 franquiciado