Vested Interest

A vested interest refers to a financial stake or ownership in a business that gives the holder the right to profit from the business’s success. In franchising, franchisees typically have a vested interest in the success of their franchise units, as they earn a return on their investment through profits and royalties. Franchisors also have a vested interest in the overall success of their franchisees, as it impacts the brand’s reputation and growth. This mutual interest aligns the goals of both parties and fosters a collaborative relationship.