• An individual who purchases the right to operate a business under the franchisor's name and system.
• 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.
• The franchisee is licensed to use both the trademark and the operating system according to the terms and
   conditions set forth in the franchise agreement.


Paying Franchise Fees – Franchisees are required to pay a franchise fee in order to obtain the right to establish a franchised business location as well as a percentage of gross revenues and a fee for advertising costs.
Management of Franchise Location – Franchisees take the franchisor's business systems, training and know-how and put it into practice in their location. Franchisees essentially have a framework for making their franchise location a success, but control the day-to-day operations independently.


• Being a franchisee is that the franchisor provides all the information that is needed for running the
   business (such as, training and suppliers).
• Higher chance of success due to tried and tested business model. They get the benefit of owning a proven
   business formula that has been tested and shown to work well in other locations
• There are lower start-up costs since the business idea was already developed.
• Being part of a wider franchise network you have the opportunity to talk to other people who are running
  the same services as you. You can discuss techniques, what works for them and learn from the experiences
  of franchisees in different areas to your own.
• Buying an existing and already established brand can provide security for you as a franchisee, as
  customers already know what to expect which can go a long way towards building your own reputation
• Your services and products will already be known to your potential customers because you are becoming a
  part of an already established brand.
• Your systems and methods of operation have already been proven by the success of the franchisor and
  previous franchisees.
• You will not only get training for yourself and your staff from the franchisor, you will also receive ongoing
  support from the parent company.
• You will have an exclusive territory of operation guaranteed by the franchisor.