The franchise is sold to an individual. This is the franchisee. The contract establishes a continuing association between the two. The franchisee is guaranteed the right to use the parent company's name and product. In turn, the franchisee pays a certain percentage of the profits to the franchisor.
Specific procedures vary from company to company.
However, the franchise is based on a contract listing the rights of and restrictions on both parties. Certain advantages of the sole proprietorship are rather obvious. As the boss, you have freedom of action and operation. As long as you don't break the law or violate the rights of others, you can run the business in any manner you choose. You are free to make your own mistakes and to enjoy your own successes.