A franchisee is an individual or business that purchases the rights to operate a branch of a larger company, known as a franchisor. This arrangement allows the franchisee to use the franchisor's brand, products, and business model in exchange for fees or a percentage of sales. Franchisees benefit from established brand recognition and support from the franchisor, which often includes training, marketing, and operational assistance. This relationship helps franchisees reduce some of the risks associated with starting a new business, as they are leveraging a proven system and customer base.