A franchisee is an individual or business that purchases the rights to operate a franchise from a larger company, known as the franchisor. This arrangement allows the franchisee to use the franchisor's brand, products, and business model in exchange for fees or royalties. Franchisees benefit from the established reputation and support of the franchisor, which can include 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 recognized brand in the marketplace.