Franchise agreement

 

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Franchise agreement

Contract by which a domestic company (franchisor) licenses its trade name and/or business system and practices for a fee to an independent company (franchisee) in a foreign market.



Franchise agreement

Similar Matches

Enfranchisement

Enfranchisement

The granting of voting rights to holders of non-voting shares in a company. Non-voting shares are much more common in Continental European markets than they are in the London market, where most shares have voting rights.


Franchise

Franchise

(1) A statutory right which could not be exercised in the absence of the statute, such as the statutes enabling persons to form a corporation. Since a corporation is created by the statute, it could not be formed except by the grant of the legislature. (2) A combination of individual ownership and central control. One may own a fast food restaurant, hotel, hardware store, etc., yet use the name of a national company. Each individual owner pays for the name use, advertising, and may be required to make certain purchases (napkins, buns, etc.) from the national company. The real estate brokerage business was slow to use the franchise method, but now has many companies operating in this manner.


Franchise

Franchise

A licence, granted by one company (franchisor) to another company or person (franchisee), entitling the franchisee to produce or market a product or service in a specific area. The licence is usually reviewed periodically, typically every 6 months or annually.




 
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