Franchise

A right that someone buys from a company to sell its goods or services, especially in a particular area. In its simplest terms, a franchise is a licence from an owner of a trademark or trade name permitting another to sell a product or service under that mark or name. More broadly stated, a franchise has evolved into an elaborate agreement under which the franchisee undertakes to conduct a business or sell a product or service in accordance with methods and procedures prescribed by the franchisor, and the franchisor undertakes to assist the franchisee through the advertising, promotion and other advisory services.