brand glossary: franchise

A franchise is a legal, contractual relationship between a brand and one or more independent owner/operators, most typically retailers. It is a license a franchisee (owner/operator) acquires, which allows them access to a brand’s proprietary knowledge and trademarks, and to sell a product or service under the brand’s name and identity. The franchisee gains an established brand name, and marketing and operating assistance, while the franchiser (brand) gains market reach and presence, as well as income.