Franchise

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Franchise is a right granted by a business or government to produce or sell goods in a specific geographic region. Examples are Burger King and Holiday Inn.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Franchise. A right granted by a business or government to produce or sell goods in a specific geographic region. Examples are Burger King and Holiday Inn.

According to the Corporate Strategy by Lynch (4th edition),

Franchise. A form of co-operative strategy in which a firm (the franchisor) develops a business concept and then offers this to others (the franchisees) in the form of a contractual relationship to use the business concept. Typically, the franchisee obtains a tried-and-tested business formula in return for paying a percentage of its sales and agreeing to tight controls from the franchisor over the product range, pricing, etc.

Related concepts

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