What is a franchise vs franchisee?

FAQs: December 19, 2019

What is a franchise vs a franchisee

What is a franchise?

A Franchise is a trademarked business formula owned by a company (Franchisor) and is available to individuals to purchase the rights to operate a small business (Franchisee) for a set period of time.

Franchisees are in effect, small business operators located in metro, suburban, regional and rural areas.

When you buy the rights to open a Franchise, you’re buying the rights to use a proven business system, with proven prices, products, and marketing techniques. You’re also buying the rights to a brand: You get full access to the company’s trademarked materials including logos, slogans, and signage—essentially anything that has to do with the brand.

What is a franchisee?

The Franchisor is the provider of the Franchise System and the Franchisee is the purchaser of the franchise business.

A Franchisee is a person who want to own their own business however would prefer to work within a tried and tested framework.  Rather than and are prepared to pay a Franchisee fee to be allowed to operate using someone else’s business system.

Got more questions?

Leisha Fontana from our Franchising Team would be happy to help. Get in touch today. 


0408 927 750