franchisee

  

Definition

One who purchases a franchise. The franchisee then runs that location of the purchased business. He or she is responsible for certain decisions, but many other decisions (such as the look, name, and products) are already determined by the franchisor and must be kept the same by the franchisee. The franchisee will pay the franchisor under the terms of the agreement, usually either a flat fee or a percentage of the revenues or profits, from the sales transacted at that location.

Use franchisee in a sentence

  • The franchisee saw a large amount of success largely due to the standards he demanded of his employees as well as his business location.

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  • When you are thinking about expanding your product you can look for a franchisee to open up another branch for you.

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  • I was the franchisee and could now do what I wanted with the team and it made me feel like I had a lot of power.

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