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The parties involvedSingle-unit franchisee
A partner operating a single outlet — the most common form and the starting point for most systems.
Where this sits
A franchise system involves several distinct roles. Naming each role precisely avoids misunderstandings about rights and obligations in the agreement.
In practice
This section summarises United States federal regulation (16 CFR Part 436) as published by the Federal Trade Commission. Rules change and differ by country — check the source before acting. For reference only; not legal advice.
The single-unit franchise is where most systems start, and it is the form where the operator's own working hours are part of the model. US disclosure documents address this head-on in Item 15, which requires the franchisor to state the franchisee's obligation to participate personally in the direct operation of the business, and whether the franchisor recommends such participation.
Read Item 15 before you budget for a manager. If the agreement requires personal on-site participation, an absentee plan is not merely expensive — it may be a breach.
Source: 16 CFR § 436.5(o) — Item 15: Obligation to Participate in the Actual Operation · Reviewed: 2026-09-02