Who receives the profit in a franchise?

In a franchise, the profit is primarily received by the franchisee, who operates the individual franchise location. The franchisor may also receive a percentage of the franchisee's revenue through royalty fees and other payments outlined in the franchise agreement. Additionally, the franchisor may benefit from overall brand growth and increased market presence, which can enhance the value of their business. Ultimately, the distribution of profits is governed by the terms of the franchise agreement.