Who is typically responsible for the investment in a franchise model?

In a franchise model, the franchisee is typically responsible for the investment. This is because the franchisee, who is an independent business owner, is required to cover various costs associated with starting and running the franchise. These costs can include the franchise fee, equipment, inventory, marketing expenses, and working capital.

The franchisee invests in the business because they are purchasing the right to operate under the franchiser's brand and business model. This investment is essential for gaining access to the franchiser’s established name, operational support, training, and ongoing assistance. In essence, the franchisee is taking a significant financial risk, aiming to build a profitable business using the franchisor's system and brand recognition.

Contrastingly, the franchiser usually provides the business model and brand recognition but does not typically invest in the individual franchisee's operations. Other options such as government involvement are limited to regulatory aspects rather than direct financial investment, and customers do not engage in the funding of the franchise itself. Therefore, in the context of who is responsible for the financial investment, the franchisee is the clear answer.