A franchisee is an entrepreneur who has been granted a franchise, i.e. received a license to use an existing business concept, from a franchisor. The franchisee is an autonomous and independent entrepreneur from a legal point of view.

In other words it can be defined as follows: A franchisee is an independent and autonomous entrepreneur who operates under the brand, system and business models established by a franchisor , in exchange for an agreement to use the brand, know-how and other resources of the franchisor. The franchisee usually pays a certain percentage of revenue or a fixed fee for the right to use these resources and to benefit from the franchisor's support and assistance in running its business.


Practically, any person accepted by a franchisor can become a franchisee, and our advice is that, before entering into a collaboration with a franchise system, do some necessary due diligence, designed to make it easier for you work and protect you from inappropriate partnerships. Thus, you should inform yourself well in advance, because în
as a partner îin a franchise system you will be an independent entrepreneur – with all rights and obligations. Îin addition, you should choose îin which domain you want to activate.
There are many ways to find the right franchise system: online portals, mass media or social media, recommendations, the fact that you have used the services or tested the products of that franchise system, etc.


If you are thinking of self-employment, you should definitely consider franchising, as this form of entrepreneurship offers many advantages that a start-up does not. In addition, the failure rate of a business is approx. 90% or even higher in the first 5 years after establishment, while the success rate of a franchise
is over 85%.

Depending on the specifics of each franchise, the franchisor can get involved in:

Location Search
The franchisor can support the franchisee in finding a suitable location, which is vital for image and sales.
This help provided by the franchisor is often a standard service, which is contractually stipulated and is usually paid for by the entrance fee.
Assistance in opening the business.
The layout and sometimes the furniture are often provided by the franchisor, who also monitors the compliance of the exterior and interior design.
Visual identity is of utmost importance to the appearance and brand preservation of the system, as it significantly promotes customer recognition value.
Favorable purchase conditions
Due to its position in the market, the franchisor can negotiate better terms of sale from suppliers, for raw materials or other important aspects. Some systems also offer a CRM type of goods or services management system.
Advertising aims to market the system's product or service and increase the level of recognition by the clientele. The franchisor undertakes the development of the advertising concept, the advertising materials to be used, which reinforce the uniform appearance of the system on the market. The fee of
advertising to be paid by the franchisee for this service is usually established in the franchise agreement.
The advertising fee can be managed by the franchisor in a national advertising fund or the franchisee takes over the regional advertising himself and implements the existing concept on a site.
Training and support
Full training of the franchisee usually begins after the contract is signed, when the potential franchisee is familiar with the system. These initial training courses ensure a successful start in business. Many systems have their own training centers where franchise partners receive additional training. During
contract duration, regular training courses contribute to the franchisee's long-term success.
IT system
Many franchise networks have a specially adapted IT system that is made available to the franchisee. This allows system-specific tasks to be processed and facilitates the franchisee to successfully fulfill his tasks in organization, accounting, control and other areas.
Financial aid
As a rule, the franchisor presents its financing plan has, liquidity and profitability of the franchisee, as a basis for calculation. Based on these predictions, the franchisee can go to the bank for possible financial help. There are financing options from the franchisor such as: îloans, rent subsidies, supplier / commodity credits and installments of entry tax or other taxes.
Insurance policies
Some systems require franchisees to draw up insurances that refer to situations regarding incidents such as floods, fires, work accidents, incidents caused by the illness of customers (in HoReCa, the beauty field) or employees (in case of illness or serious traffic accidents).

What advantages does a FRANCHISEE have?

Any potential franchisee wonders if entering a franchise network makes sense, and the main concern is the question of possible earnings. An important question, because after all it's not enough to be your own boss, you have to be able to make a good living at it. How well depends largely on the choice of system, location, industry, pricing, and last but not least, your own qualifications. So it should be calculated accurately and realistically. One thing is certain: the franchise partnership must be as useful for both the franchisor and the franchisee.

Benefits of belonging to a franchise system:

  1. The existing concept allows quick entry into the market, being already known and appreciated.
  2. The business idea has already been tested and validated, and the risk is reduced, if you comply with the franchisor's requirements and instructions
  3. A unified marketing strategy is provided
  4. Franchising systems usually offer special conditions and advantages that benefit all franchisees.
  5. The business idea is mature and already tried and tested, which improves the negotiating position in financing matters as well

The franchisee can focus on his core competencies, customer contact. The franchisor deals with the development, marketing and continuous improvement of the product and/or service offering.


When deciding on a franchise system, you should have a detailed discussion with the franchisor and, if necessary, request the Information Disclosure Document (data on its form can be found in Law 179/2019) .
The most important questions refer, among others, to financial aspects (estimated forecasts), to the franchise package, to services or products, location, pecuniary matters such as investment level, royalties, marketing fees, etc.
Among the questions to which you should know the answers after discussions with the franchisor, but also after receiving the DDI, you should also find those regarding the advantages / strengths of the system in the market, in sales and purchases?
Are the figures correct?
What is the franchisor's current situation?
Is the franchise package “enough”?
What specifications must the location have?
Is there funding?
Other important contractual points.


Franchisees have the right:

  1. to belonging to a tested system, which enjoys a positive image and confers clear competitive advantages.
  2. to receive franchise manuals from the franchisor. They contain the knowledge and all the information necessary for operational management.
  3. to sustained support and qualified advice from the franchisor.
  4. to long-term education and training.
  5. to benefit from marketing campaigns and advertising and promotional activities.
Franchisees have the duty to:
  1. to comply with the principles of the franchise system, as established in the manuals.
  2. to participate in seminars and training courses.
  3. to pay the franchise fees.
  4. compile a report on the daily activity and inform the franchisor about the developments of the franchised company.
  5. to promote the brand identity and not alter it.
  6. not to undertake actions that could harm the brand and the brand.
What support does the FRANCHISOR offer?

Îfrom the start, franchisees benefit from support and support from the franchisor, a fact likely to bring many benefits to ensure the success of each member of the franchise network chain link. The franchisee is continuously supported by the franchisor.