Franchise Definition Business Examples

By the book a franchise is a method of parceling out goods or service.

Franchise definition business examples. The owner holds the right to a name or trademark which is then sold or licensed to franchisees. A franchise is a license that a party franchisee purchases that allows them access to use a business s franchisor proprietary knowledge processes and trademarks to sell products or provide. Franchising is a well known marketing strategy for business expansion. A franchise is the license to make or sell a product under certain conditions granted by the owner of these rights.

In other words a franchise is the right to produce a licensed product by the owner of the license. Franchising is an arrangement in which the franchisor gives the franchisee the right to distribute and sell the franchisor s goods or services and use its business name and business model for a specified period and possibly covering a geographical area. The franchisor and franchisee have an ongoing relationship in which the franchisor provides services. A contractual agreement takes place between franchisor and franchisee.

In this contact the franchisee pays the franchiser for the right to use the licensed material. Franchises typically fall into one of two business models. There are a wide range of franchise examples from restaurants to business services and almost everything in between. The franchisor is the owner of the business that provides the product service while the franchisee is the person who receives the rights.

Franchising is an arrangement where franchisor one party grants or licenses some rights and authorities to franchisee another party. Franchisor authorizes franchisee to sell their products goods services and give rights to use their trademark and.