The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

FRANCHISING Definition & Legal Meaning

Definition & Citations:

Contractual selling or renting of a business model around specific products and/or services at specific locations under specific arrangements. The franchiser contractually gives the franchisee use of a brand name or trademark or trade-name, and certain business systems and processes. The process are how to specifically produce and market franchise goods or services. A one-time franchise fee plus a percentage of sales revenue as royalty earns the franchise. The franchiser achieves rapid business and earnings expansion at minimum capital outlay. It includes (1) immediate brand recognition, (2)marketable, profitable products, (3) standard building layout and decorations (4) details for running and promoting business, (5)employee hiring and training, and (6) ongoing help in promoting and upgrading of the products.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.