Sub-franchisee

A sub-franchisee is an individual or company that operates a franchise business under the rights granted by a primary franchisee, rather than directly from the original franchisor. Essentially, the primary franchisee acts as a mini-franchisor, owning the rights to open and manage additional franchise units in specific locations. The sub-franchisee pays fees and follows the franchise’s established systems, but the relationship is between them and the primary franchisee, not directly with the original franchisor. This structure allows the franchise network to expand efficiently through multiple layers of franchise operators.