Legal Dictionary: Franchising

DEFINITION

• A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol (the franchisor) and someone who seeks to use that identification in a business (the franchisee).

• In the usual franchise relationship, the franchisee pays the franchise fee and is given a format or system developed by the franchisor, the right to use the franchisor's name for a limited time, and assistance. The franchisee may sell goods or services supplied by the franchisor, or that meet the franchisor's quality standards.

FIND A FRANCHISING ATTORNEY IN YOUR AREA.

Learn more about PURCHASING A FRANCHISE.

OTHER BUZZWORDS

• Franchise Fee
• Royalties

For definitions of legal terms, visit FindLaw Intellectual Property Law Glossary.

RELATED PRACTICE AREAS

Intellectual Property Law
Business & Commercial Law