NationMaster - Encyclopedia: Franchise agreement

Franchise agreement. An arrangement whereby someone with a good idea for a business sells the rights to use the businesses name and sell a product or service to others in a given territory. Usually arranged by contract.

A franchise agreement will usually specify the given territory the franchisee can use as well as the extent to which the franchisee will be supported by the central company. Support usually coming through marketing campaigns.

A franchise agreement can apply to a certain national region, nation, or geographical region.

Best known franchises

McDonalds
Holiday Inn
7-Eleven
Weight Watchers

Franchising - Wikipedia, the free encyclopedia (872 words)
	Franchising (from the French for free) is a method of doing business wherein a franchisor licenses trademarks and methods of doing business to a franchisee in exchange for a recurring royalty fee.
	A franchise agreement will usually specify the given territory the franchisee can use, as well as the extent to which the franchisee will be supported by the franchisor, such as through training and marketing campaigns.
	As practiced in retailing, franchising offers franchisees the advantage of starting up a new business quickly based on a proven trademark and formula of doing business, as opposed to having to build a new business and brand from scratch (often in the face of aggressive competition from franchise operators).

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Best known franchises

See also