Definition

Franchising

A special form of licensing is franchising, which allows the franchisee to sell highly publicized product or service, using the parents brand name or trademark, carefully developed procedures, and marketing strategies. In exchange, the franchisee pays a fee to the parent company, typically based on the volume of sales of the franchisor in its defined market area. The franchise is operated by the local investor who must adhere to the strict policies of the parent.


Franchising is the contractual business arrangement between a manufacturer or other supplier, and a dealer such as a restaurant operator or retailer.

Webster Dictionary Meaning

1. Franchising
- of Franchise
Share it:  Cite

More from this Section

  • Laissez-faire style
    Laissez-faire style described a leader who lets the group make decisions and complete ...
  • Project structure
    An organizational structure in which employees continuously work on projects. All work ...
  • Adjourning stage
    Adjourning stage is the final stage of group development for temporary groups, during ...
  • Leader's Principles
    A leader’s fundamental personal standards that guide her sense of honesty, integrity ...
  • Functional authority
    Functional authority is the authority to make decisions on specific activities that are ...