In the context of the Cost Cutters Family Hair Salon franchise arrangement, what does the 'Participant' own and operate?

According to the 2024 Cost Cutters Family Hair Salon Franchise Disclosure Document, the 'FRANCHISEE' (or participant) acquires the right to use the Marks and the Business System and to own and operate a Cost Cutters Family Hair Salon business. This right is subject to the terms and conditions outlined in the franchise agreement. The franchisee is granted the right to open a single Cost Cutters Family Hair Salon business and may operate additional locations within a designated area, provided they adhere to Cost Cutters Family Hair Salon's uniformity requirements and quality standards.

Cost Cutters Family Hair Salon provides the franchisee with marketing, advertising, technology, operational, and other business information, experience, and "know-how" developed over time. The franchisee acknowledges the substantial capital and human resources required to develop a similar business independently, which is why they seek to acquire the rights to use Cost Cutters Family Hair Salon's established system and brand.

The franchisee operates their Cost Cutters Family Hair Salon business in accordance with the standards and guidelines set by Cost Cutters Family Hair Salon, as detailed in the confidential Operations Manual. The franchisee has the right to sell approved products and services at prices and terms they deem appropriate, but only at the franchised location and not through other locations or the Internet. The franchisee must also adhere to customer service standards prescribed by Cost Cutters Family Hair Salon and maintain the brand's image as a provider of reasonably priced hair care services and products.