Introduction:

A franchisee is an independent small business owner who operates a third-party retail outlet called a franchise. In doing so, the franchisee has purchased the right to use an existing business's trademarks, associated brands, and other proprietary knowledge to market and sell the same brand, and uphold the same standards as the first business.

Benefits:

Operating a franchise could be an ideal venture for some entrepreneurs with little experience because:

The costs of opening a franchise are often lower compared to starting a company from the ground up, so franchisees require very little capital to start; Consumers may already have brand recognition for the franchise and benefit from their advertising campaigns; and Franchisees typically get a lot of help, as franchisors will tend to supervise their new franchisees closely.

Responsibilities:

A franchisee must follow the proven business model that is already in place, as it helps to provide a consistent state of operations within all companies under the same brand name. The franchisee is responsible for growing the franchise via the usual means of advertising and marketing within its exclusive area of operation.

Can it be Removed:

Yes, if the franchisee breaks the terms or covenants in the franchise agreement they may be terminated with cause. A termination that is seen as not for cause can be litigated as wrongful termination of the franchise in court.