What Is a Franchise?
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- An authorization to sell a company's goods or services in a particular place
- A business established or operated under an authorization to sell or distribute a company's
goods or services in a particular area
- According to industry statistics, a new franchise opens somewhere in the US every 17 minutes.
Some of the major advantages: reduces risk of failure, turnkey operation, pretested a standardized
product/service.
- A business arrangement in which knowledge, expertise and often a trade mark or trade name are
licensed to an operator, generally for an initial fee and a yearly payment.
- A license or similar legal authority to provide service at retail in a given geographic area. An exclusive franchise
is a monopoly to provide service in that area.
- An agreement enabling a third party to sell or provide products or services owned by a manufacturer or supplier. The
franchise is regulated by a franchise contract, or franchise agreement, that specifies the terms and conditions of
the franchise.
- An organization that grants a license to a group of merchants to market a company's goods or services in a particular
territory.
- The authorization to conduct a business using the name and operating methods of another. In lending on an income
property, a franchise may have value as an additional security, and may be assigned to the lender.
- A business that has been licensed to sell the product of a manufacturer or to offer a particular service in a given area.
- A right granted to a person (the franchise) to carry on a certain line of business (controlled by the franchiser)
in a defined geopgrahical area.
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