The franchisee has full rights to use the franchisor's product, service and trademark. The franchisor also teaches the franchisee the entire business format including marketing, selling, inventory, accounting and personnel procedures. Furthermore, the franchisor provides support via training and communications for the duration of their business relationship. Restaurants, retail and many service businesses are business format franchisors.
An arrangement in which the franchisee receives assistance on site location, quality control, accounting systems, startup practices, management training, and responding to problems -- besides the right to sell goods and services.
The business format franchise is a grant of a licence by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name or the franchisor and to make use of an entire package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis' (How to franchise your business-Martin Mendlesohn).
A license to operate a business using a franchisor's product, service and trademark under certain guidelines for a specified time.
An arrangement whereby the originator of the franchise, known as the franchisor, grants others, known as franchisees, the right to conduct business under the franchiseâ€(tm)s name using proprietary products, systems and procedures. The franchisee is required to make a significant investment into the business and conduct operations in accordance with the franchisorâ€(tm)s guidelines. The franchisor is obliged to provide substantial initial and ongoing support to franchisees and has the right to enforce adherence to agreed standards.