01:22
01:22
DEFINITION of 'Franchise'
A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchiser) proprietary knowledge, processes and trademarks in order to allow the party to sell a product or provide a service under the business's name. In exchange for gaining the franchise, the franchisee usually pays the franchisor initial start-up and annual licensing fees.
Read more: Franchise Definition | Investopedia http://www.investopedia.com/terms/f/franchise.asp#ixzz3zMkQhdWr
Follow us: Investopedia on Facebook