- An contract between a company and another party in which the company gives the other party the right to use the company's name and to sell or rent its products. This right is usually purchased for cash in addition to a royalty fee or a percentage of all sales. Selling franchise rights is a popular method for expanding a business quickly with a minimum of capital.
business franchise, business franchising, chain store, franchising
Related Terms and Acronyms
- Commercial Banking — Definition,
- Commercial banking centres serve small to medium-sized businesses such as franchising, leasing and cash management services.
- Intangible Property — Definition,
- Property that does not have value itself, but represents something else. Stocks, bonds and franchises are examples of intangible property. Business furniture and equipment are examples of tangible personal property.
- International Chamber of Commerce (ICC) — Acronym,
- A world business organization that brings business people and experts together to formulate policies in such areas as banking, taxation and the environment.
- Royalty Income — Definition,
- Payment for the use and exploitation of certain kinds of property, such as artistic or literary works, patents and mineral rights.
- Tangible Personal Property (TPP) — Acronym,
- Assets other than real estate that physically exist. Business equipment and vehicles are tangible personal property whereas stock certificates and franchises only represent value and are therefore intangible property.
- Wholesale Insurance — Definition,
- A form of insurance used by small businesses to provide benefits for employees.