Brand Franchise Definition

An agreement between a wholesaler or retailer and the holder of a brand for the distributor to use that brand exclusively in an area.

Brand franchise definition. 1 the franchisee will obtain the right to operate a business that is identified or associated with the franchisor s trademark or to offer sell or distribute. A brand is a name term design symbol or any other feature that identifies one seller s good or service as distinct from those of other sellers. The cost in establishing the brand and also the value in not destroying it is a fuzzy guarantee placed into the public by the vendor. A franchise is a licence granted by a party franchisor which owns the brand to an individual or a corporate franchisee to have access to their business proprietary knowledge process trademarks and to sell products or provide services under their name within a territory or a region.

This helps the wholesaler or retailer boost its sales because it can tap into customers brand loyalty. Arrangement between a brand name manufacturer and a wholesaler or retailer that gives the wholesaler or retailer the exclusive right to sell the brand manufacturer s product in a specific territory. A franchisee is a small business owner that purchases the right to use an existing business s trademarks associated brands and other proprietary knowledge. So in a sense a brand franchise becomes a contract between the buyer and the vendor.

A franchise comes with market tested products and services and in many cases established brand recognition. A brand franchise is an arrangement between a corporation and a local retailer or wholesaler to function as the exclusive seller for the corporation s products within a defined sales territory. If you re a mcdonald s franchisee decisions about what products to sell how to layout. Brands are used in business marketing and advertising for recognition and importantly to create and store value as brand equity for the object identified to the benefit of the brand s customers its owners and shareholders.

A franchise means any continuing commercial relationship or arrangement whatever it may be called in which the terms of the offer or contract specify or the franchise seller promises or represents orally or in writing that. Barrons dictionary definition for. A right to sell a company s products in a particular area using the company s name. That is the wholesaler or retailer is the only company permitted to sell that brand product within certain boundaries.