Franchising is a special type of vertical relationship between two companies by which a franchiser grants a franchisee the right to use its trademark or tradename including certain business systems and processes, to produce and market a goods or services that is based on a marketing concept which can be adopted by an organisation as a strategy for business expansion.
Reference Definition by Entrepreneur.com: Franchising is a continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration. Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees).
Related Definitions in the Project: The Commercial Definitions; Business Organisation
