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Contract & Commercial Law vocabulary · Commercial Agreements

Franchise

Meaning in contract & commercial law, with examples

/ˈfræntʃaɪz/nounCommon term

In contract & commercial law, franchise means: A business arrangement in which the owner of a brand and business system lets others run outlets using its name, methods and support in return for fees.

In Turkish: franchise, franchising, franşiz

How it is used

The brand owner is the franchisor and the operator is the franchisee. A franchise agreement covers the initial fee, ongoing royalties, the operations manual, quality controls and the territory. Cafés, hotels and retail chains commonly use franchising.

Example sentences

  1. She opened the café as a franchise of an international coffee chain.

  2. The franchise agreement requires all staff to complete the brand's training programme.

Common collocations

  • franchise agreement
  • franchise fee
  • buy a franchise
  • master franchise
  • licensePermission from the owner of a right, such as a patent, trademark or software, allowing someone else to use it under agreed conditions, often in return for payment.
  • royaltyA payment made to the owner of a right, such as a patent, brand, book or song, usually calculated as a percentage of sales or a fee per unit sold.
  • trademarkA sign such as a name, logo or slogan that identifies the goods or services of one business and distinguishes them from those of others.
  • distribution agreementA contract under which a distributor buys products from a manufacturer and resells them in its own name in an agreed territory.

More terms: Commercial Agreements

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This page explains English vocabulary for learners. It is not legal advice.