Final answer:
A franchisee is an individual or company that purchases the right to use a brand name and business model from the franchisor, paying fees for the privilege and gaining benefits such as training and brand recognition.
Step-by-step explanation:
The correct answer to the question is a franchisee. A franchisee is an individual or company that purchases the rights to use a franchisor's brand name and business model for a certain period of time. This allows the franchisee to start a business using a well-established brand and receive various forms of support such as training, supply chain management, and operational setup assistance. In return for these benefits, the franchisee agrees to pay an initial franchise fee as well as ongoing royalty fees.
For instance, when someone opens a new fast-food restaurant under a popular brand, they are operating as a franchisee and must adhere to the franchisor's guidelines while benefiting from the brand's recognition, like the well-known trademarks of Chiquita bananas or the Nike "swoosh." Trademarks are important here, as they are legally registered symbols or names that identify the goods of a specific company and distinguish them in the market.