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Franchise refers to a contractual association between a manufacturer, wholesaler, or service organization (a franchisor) and independent business people (franchisees) who buy the right to own and operate one or more units in the franchise system.

Franchise systems are normally based on some unique product or service; a method of doing business; or the trade name, good will, or patent that the franchisor has developed. Franchising has been prominent in fast-food restaurants, motels, health and fitness centers, auto sales and service, and real estate.

Franchise means the independent owner of a franchise outlet who enters into an agreement with a franchisor.

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