A person or business buying the franchise.

• A. Franchise
• B. Franchiser
• C. Royalty Fee
• D. Franchisee

Answer: (D)

The key idea is understanding franchising roles. In a franchise arrangement, the person or business that buys the rights to operate under the brand and use the business system is called the franchisee. They are the buyer who pays to use the brand, receive training and support, and follow the franchiser’s methods. The franchiser is the company that owns the brand and licenses it to others. The franchise is the whole business concept and system being sold, and the royalty fee is the ongoing payment the franchisee makes to the franchiser for using the system. So the buyer of the franchise is the franchisee.