franchisee

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Franchising is the practice of the right to use a firm's business model and brand for a prescribed period of time. The word "franchise" is of Anglo-French derivation—from franc, meaning free—and is used both as a noun and as a (transitive) verb. For the franchisor, the franchise is an alternative to building "chain stores" to distribute goods that avoids the investments and liability of a chain. The franchisor's success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because they have a direct stake in the business.
Thirty-three countries—including the United States and Australia—have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect impact on franchising.
Franchising is also used as a foreign market entry mode.

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  1. Z

    ACT Security bond on bankrupt

    Hi everyone! My friend is now operating a small retail shop as a franchisee. He has paid 20k as security bond to franchisor making sure that he is not using third party suppliers. He got receipt and confirmation letter from the franchisor but the issue is that the bond was not paid to the...
  2. R

    VIC Can a franchisor double dip?

    Can a franchisor double dip on merchandise they provide to the franchisee by selling the merchandise to the franchisee at a profit to their wholesale cost, and then also take royalties when the franchisee sells said merchandise?