The
Definition Of

Franchisee

Franchisee refers to an individual or firm that enters into a franchise agreement and pays an initial fee and an ongoing royalty to an franchisor in exchange for using the franchisor’s trademark and method of doing business.


Franchisee is the individual or business firm purchasing a franchise.

Share it:  Cite

More from this Section

  • Anticipatory purchasing
    Anticipatory purchasing is a purchasing agent stockpiles an extremely large supply, well in advance of need, anticipating future problems.
  • Venture-leasing Firms
    Venture-leasing firms- firms that act as brokers, bringing the parties involved in a lease together. These firms are acquainted with the producers of specialized equipment...
  • Focus Group
    A focus group is a gathering of six to ten people who are invited to spend few hours with a skilled moderator in order to discuss a product, service...
  • Active corps of executives (ACE)
    Active corps of executives (ACE) is a volunteer organization of active managers who supplement SCORE’s services with the most current expertise and techniques for small-business owners.
  • Forecasts
    Forecasts are an estimate of a firm’s future income and expenses, based on its past performance, its current circumstances, and its future plans.
  • Brainstorming
    A common way to generate new business ideas is through brainstorming. In general, brainstorming is simply the process of generating several ideas about a specific topic.
  • Liability of newness
    Liability of newness refers to the fact that companies often falter because the people who start them aren’t able to adjust quickly enough to their new roles...