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

  • Boundary less organization
    Another contemporary organizational design is the boundary less organization, which is ...
  • Simple organizational structure
    Structure in which there is an owner and a few employees and where the arrangement of ...
  • Management
    Management is a term that involves coordinating and overseeing the work activities of ...
  • Management functions
    Management functions means the five broad activities that managers perform to achieve ...
  • Plans
    Plans are documents that outline how goals are going to be met. They usually include resource ...