Brief Glossary Of Franchise Terms
Franchise – a licence granted to a franchisee to offer specific branded products or services within a certain location, for a declared period of time.
Franchise Agreement – a legal document between the franchisor and franchisee outlining the expectations and requirements for both parties, including information covering territorial rights, showroom requirements and general operating procedures.
Franchisee / Franchise Owner – the operator or owner of a franchise, to whom the rights to conduct a trademarked business have been granted by the franchisor.
Franchisor – the parent company or brand owner that controls the right to grant franchisees the right to use its name and systems of operation, for a fee and other considerations.
Franchise Territory – an exclusive geographical area and specific location, where the franchisee is given the right to conduct business, without encroachment from franchisees of the same brand.