franchising

Definition from Wiktionary, the free dictionary Jump to: navigation, search

Verb

franchising

1. Present participle of franchise.

Noun

franchising (uncountable)

1. The establishment, granting, or use of a franchise.

Finnish

Noun

franchising

1. franchising

Declension

Declension of franchising (type risti) singular plural nominative franchising franchisingit genitive franchisingin franchisingien partitive franchisingia franchisingeja accusative franchising franchisingin franchisingit inessive franchisingissa franchisingeissa elative franchisingista franchisingeista illative franchisingiin franchisingeihin adessive franchisingilla franchisingeilla ablative franchisingilta franchisingeilta allative franchisingille franchisingeille essive franchisingina franchisingeina translative franchisingiksi franchisingeiksi instructive – franchisingein abessive franchisingitta franchisingeitta comitative – franchisingeineen

Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-french derivation - from franc- meaning free, and is used both as a noun and as a (transitive) verb.

For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods and avoid investment and liability over a chain. The franchisor's success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.

However, except in the US, and now in China (2007) where there are explicit Federal (and in the US, State) laws covering franchise, most of the world recognizes 'franchise' but rarely makes legal provisions for it. Only Australia, France and Brazil have significant Disclosure laws but Brazil regulates franchises more closely.

Where there is no specific law, franchise is considered a distribution system, whose laws apply, with the trademark (of the franchise system) covered by specific covenants.