In a franchise agreement, what term refers to the firm that operates a business using the franchise name?

In a franchise agreement, the term that refers to the firm that operates a business using the franchise name is the franchisee. The franchisee is an individual or entity that purchases the rights to use the franchisor's brand, business model, and operational support in order to run their own business. This relationship allows the franchisee to benefit from the established reputation and resources of the franchisor while also adhering to the guidelines and standards set forth by the franchisor.

While the franchisor is the original business or company granting the license, and the distributor typically sells products from various producers, the key distinction is that the franchisee actively manages and operates the franchise location, making strategic decisions within the framework provided by the franchisor. The term operator is less specific and does not necessarily convey the franchising relationship clearly, making franchisee the most accurate choice in this context.