What is a franchisee?

A franchisee is an independent small business owner that operates a franchise business that trades under the franchisors established brand name in order to provide goods or services to their clients as the franchisee has purchased the rights to use the businesses brand name, trademarks & other knowledge in their market to sell their goods or services and also agrees to maintain the same standards the franchisor has set throughout the franchise network.


What does a franchisee do?

Now you know what a franchisee is, you might be wondering what a franchisee does? We will list a few duties you are expected to fulfill as a franchisee when you sign the franchise agreement and pay off your initial franchise fees to open your franchise business doors to the public.


  • You must follow the proven system

When you become a franchisee, you will be expected by your franchisor to follow the proven system they provide. The reason for this is simply because it is a tried and tested system that has been successful with many other new franchisees before you, so you will be expected to follow the same pattern.


  • Maintain the franchisors standards

As a franchisee, you will be expected to maintain the high standards set by your franchisor. This is because even though you might think you are just a franchisee in a single franchise location, maintaining high standards is still crucial in order to continue operating your chosen franchise business. As if standards drop, that can damage the franchisors brand name, and if you continue with low standards, the franchisor might even terminate your franchise agreement, as they are entitled to do this if they feel it is damaging their brand name, but this is a last resort for the franchisor if the franchisee does not improve.


  • Run the day-to-day operations

Many people think franchisees have an easy path to business success, and some may not even consider franchisees as entrepreneurs. This could not be further from the truth since, as a franchisee, you will still need to work hard to make your franchise business a success, and franchisors will expect to see your dedication to their brand early on to ensure you are capable of running the franchise location.


  • Manage the local marketing of their franchise business

Although the franchisor will run the marketing of their brand name on a national or international scale, depending on which franchise business you decide to open, most franchisees are expected to manage their own marketing campaigns to get their franchise business off the ground.


Some franchisors may even offer their own marketing services, which will allow you to gain access to an already tried and tested marketing strategy, but this can sometimes come with an additional fee.


What are the benefits of becoming a franchisee?

Now you know some of the primary duties a franchisee is expected to perform while running the day-to-day operations of their franchise business, we will now share some of the benefits that come with buying a franchise. This should help you understand why opening a franchise is unique compared to other business opportunities that are available right now.


  • Better work-life balance

Becoming a franchisee allows you to have a better work-life balance, especially if you are transitioning from an employee to a franchisee for the first time. Of course, this does not come without responsibilities, but having a healthy work-life balance can go a long way to the success of your franchise business.


  • Easier access to financing options

Another perk of becoming a franchisee would be the financing options that are available when you are interested in purchasing a franchise. Remember, banks are much more likely to lend money to someone investing in a proven system rather than starting up their own business from scratch. This saves you from having to go through a long and tedious process to access capital to open your franchise business as a new franchisee.


  • Training and ongoing support

When you become a franchisee, you will receive training and ongoing support. This kind of support and advice from day one is invaluable, particularly if you are a first-time entrepreneur in need of help before or shortly after opening your franchise.


  • Access to a trusted brand name

This is by far the biggest benefit of becoming a franchisee, as building a trusted brand name can take years for small businesses to achieve when you buy a franchise, you will be trusted by your local community from day one, especially if you are trading under a brand that has been operating for many years nationally or even internationally.



We hope this article has helped you understand the full definition and meaning of a franchisee. However, suppose you would like to learn more about other key franchising terms. In that case, we recommend you check out our franchise dictionary, listing some of franchisings most important terms explained in detail to help you learn more about how franchising works.

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