What is franchising?
A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name or advertising symbol and an individual or group seeking the right to use that identification in a business. The franchise agreement governs the method for conducting business between the two parties. Although forms of franchising have been used since the Civil War, enormous growth has occurred more recently. Industries that rely on franchised businesses to distribute their products and services touch every aspect of life, from automobile sales and real estate to fast food and tax preparation. In its simplest form, a franchisor owns the right to a name or trademark and sells that right to a franchisee. This is known as product/trade name franchising. The franchisor can provide a full range of services, including: • Site selection • Training • Product supply • Marketing plans • Advertising • Financing Generally, a franchisee sells goods or services that are supplied by the franc
By definition, a franchise is a legal/commercial relationship between the owner of a brand name, proven method of business, trademark, or trademark and an individual seeking the right to use that those aspects in a business. The Franchise Agreement outlines the rules and regulations under which the two parties will conduct business.
A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name or advertising symbol and an individual or group seeking the right to use that identification in a business. The franchise agreement governs the method for conducting business between the two parties. Generally, a franchisee sells goods or services that are supplied by the franchisor or that meet the franchisor’s quality standards.
Franchise: A privilege or right officially granted to offer specific products or services under explicit guidelines at a certain location for a declared period of time. Franchisee: A person or entity to whom the right to conduct a business is granted by the franchisor or licensor. Franchisor: The company owning/controlling the rights to grant franchises to potential franchisees. Franchising is a long-term cooperative relationship between two individual companies – a franchisor and one or more franchisees – that is based on an agreement in which the franchisor provides a licensed privilege to the franchisee to do business. The franchisor grants the franchisee the right to use a developed concept, including trademarks and brand names, production, service and marketing methods and the entire business operation model, for a fee. The product, method or service being marketed is usually identified by the franchisor’s brand name, and the holder of the privilege (franchisee) is often given exc
