Someone who purchases the right to operate a retail outlet using a previously developed and supported name and format is called a .

The term for someone who purchases the right to operate a retail outlet using a previously developed and supported name and format is called a franchisee. A franchisee enters into a legal agreement with a franchisor, who owns the overall rights to a trademark or a trade name and the business system associated with it. This arrangement allows the franchisee to benefit from the established brand reputation, marketing strategies, and operational support provided by the franchisor. In return, the franchisee typically must pay initial fees and ongoing royalties based on sales. This business model is advantageous for both parties; the franchisor gains wider market presence and revenue, while the franchisee receives the support needed to run a business with a proven track record.