Legal Definitions - franchisee

Definition: A franchisee is a person or company that is granted the right to operate a business using the trademark, products, and services of a franchisor. The franchisee is one of the parties to the franchise agreement, which outlines the terms and conditions of the franchise relationship.

Example: McDonald's is a well-known franchisor that grants franchises to franchisees who operate their own McDonald's restaurants. The franchisee pays an initial fee and ongoing royalties to the franchisor in exchange for the right to use the McDonald's brand, products, and services. The franchisee is responsible for managing the day-to-day operations of the restaurant, including hiring employees, ordering supplies, and marketing the business.

Explanation: The example illustrates how a franchisee operates a business using the trademark, products, and services of a franchisor. The franchisee pays a fee to the franchisor for the right to use their brand and receives support and training from the franchisor to help them run their business. The franchisee is responsible for the day-to-day operations of the business, but must follow the guidelines and standards set by the franchisor to maintain the consistency and quality of the brand.