Conversion Franchise Law and Legal Definition

Conversion franchise is a franchise system in which the already existing independent businesses are converted into franchises. Hence it allows an independent business to use a national franchise systems name, trademark and operating system. In a conversion franchise, instead of recruiting a franchisee and establishing him/her up in a newly established business, the franchisor recruits an established operator into the network. Conversion franchising is usual with real estate franchises, travel agencies, hotel and motel businesses and the automotive after market.