Franchises Law & Legal Definition
A franchise has different meanings under the law. A franchise may refer to a right granted by the government to a person or corporation, such as a taxi permit, bus route, an airline's use of a public airport, business license or corporate existence. The right to vote in a public election is also referred to as a franchise. Franchise is also commonly used to redfer to a grant of the right to operate and share in the profits of a business or sell goods or services under a brand or chain name. Franchise may mean the right one has to operate a store or sell goods or services under a franchise agreement. In a franchise business relationship, the owner (the franchisor) licenses others (the franchisees) to operate outlets using business concepts, property, trademarks and tradenames owned by the franchisor.
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