franchising Definition
- 1the practice of using the name, brand, and business model of an existing successful business to operate a new branch or location
- 2a type of business relationship in which a company (the franchisor) grants the right to use its trademark or trade-name as well as certain business systems and processes to another company (the franchisee) for an initial fee and ongoing royalties
Using franchising: Examples
Take a moment to familiarize yourself with how "franchising" can be used in various situations through the following examples!
Example
McDonald's is one of the most successful franchises in the world.
Example
The company is planning to expand through franchising.
Example
Franchising allows entrepreneurs to start their own businesses with the support of an established brand.
franchising Synonyms and Antonyms
Synonyms for franchising
Phrases with franchising
a type of franchising in which the franchisor grants the right to sub-franchise within a specified territory
Example
The company decided to use master franchising to expand into new markets.
a legal contract between the franchisor and franchisee that outlines the terms and conditions of the franchise relationship
Example
Before signing the franchise agreement, it's important to carefully review all the terms and conditions.
an initial fee paid by the franchisee to the franchisor for the right to use the franchisor's trademark and business systems
Example
The franchise fee for this business is $50,000.
Summary: franchising in Brief
Franchising [ˈfræn.tʃaɪz.ɪŋ] is a business model that allows entrepreneurs to use the name, brand, and business systems of an established company (the franchisor) to operate a new branch or location. This relationship is governed by a franchise agreement, which outlines the terms and conditions of the franchise. Franchising can be a way to start a business with the support of an established brand, and it often involves paying an initial fee and ongoing royalties.
