A franchise definition government, in a business sense, is the governing (or regulation) of the use of a defined license to do business using the trademark or the name of a company (the franchisor Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its bran…Franchising
What is the meaning of franchise in government?
franchise - a statutory right or privilege granted to a person or group by a government (especially the rights of citizenship and the right to vote) enfranchisement legal right - a right based in law
What is franchise in government?
franchise ( ˈfræntʃaɪz) n 1. (Government, Politics & Diplomacy) the franchise the right to vote, esp for representatives in a legislative body; suffrage 2. (Government, Politics & Diplomacy) any exemption, privilege, or right granted to an individual or group by a public authority, such as the right to use public property for a business 3.
What is a franchise definition?
A franchise is an established business that sells the rights to its company name, brand and trademark to a franchisee. Franchising happens when a franchisor provides a license to the franchisee. Franchising allows the franchisee to operate their business using the same business model and brand as the franchisor.
What is the legal definition of a franchise?
In legal terms, a franchise involves a business owner granting a license to another business owner. The licensed business becomes a franchise and falls under the terms and regulation of the license agreement. With the license, the franchisor will be allowing the new business to use its: Trade name. Operating system.
What is a franchise government?
What Is a Franchise?
What is the major characteristic of a product distribution franchise?
What were the laws in 1979 that protected franchisees from being scammed?
What is business format franchise?
Is Harry Potter a franchise?
What is a brand name license?
See 4 more
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What is meant by franchise government?
A franchise definition government, in a business sense, is the governing (or regulation) of the use of a defined license to do business using the trademark or the name of a company (the franchisor), or the regulation of a license that grants rights to an entity (the franchisee) to sell the products of a company within ...
Whats the meaning of a franchise?
A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand's trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.
What is an example of a government franchise?
franchise. 1) n. a right granted by the government to a person or corporation, such as a taxi permit, bus route, an airline's use of a public airport, business license, or corporate existence.
What does franchise mean voting?
Suffrage, political franchise, or simply franchise, is the right to vote in public, political elections and referendums (although the term is sometimes used for any right to vote).
How do franchise work?
In franchising, a franchise owner partners with a corporate brand to open a business under the brand's umbrella. The franchisee owns and operates that location using the franchisor's brand name, logo, products, services and other assets.
What are the 4 types of franchising?
The four types of franchise business you can invest inJob or operator franchise. These owner operator franchises are usually home based, which keeps overheads down to a minimum. ... Management franchise. ... Retail and fast food franchises. ... Investment franchise.
What are the two types of franchise in government?
TYPES OF FRANCHISE LIMITED OR RESTRICTED FRANCHISE.
What are advantages of franchising?
Advantages of buying a franchise You don't necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model. Franchises have a higher rate of success than start-up businesses. You may find it easier to secure finance for a franchise.
How do you get a franchise?
How to buy a franchise, step by stepBe sure about your reasoning. ... Research which franchises you may want to own. ... Begin the application process. ... Set up your “discovery day” meeting. ... Apply for financing. ... Review and return your franchise paperwork very carefully. ... Buy or rent a location. ... Get training and support.
What is a franchise citizen?
Definitions of franchise. a statutory right or privilege granted to a person or group by a government (especially the rights of citizenship and the right to vote) synonyms: enfranchisement. types: right to vote, suffrage, vote.
How is franchise related to democracy?
In a democracy every citizen is equal. Universal adult franchise guarantees that every person above the age of 18 has the right to vote. This is important to democracy because it is based on the principle of equality. It does not discriminate on the basis of social or economic backgrounds.
What is franchise in class 9 SST?
Solution. The meaning of Franchise is Right to vote.
Is McDonald's franchised?
McDonald's has been a franchising company since 1955 and has relied on its franchisees to play a major role in the system's success. Currently, about 95% of all U.S. restaurants are franchised to independent franchisees and about 5% are company-owned.
Is KFC a franchise?
KFC Franchise is owned by Yum! brands, global franchisor whose 3 restaurant brands, Pizza Hut, Taco Bell and KFC, are amongst the largest and most well-known franchises in the world. They are leaders in their respective industries - Pizza, Mexican and chicken. Yum!
What are 2 advantages of a franchise?
Advantages of buying a franchise You don't necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model. Franchises have a higher rate of success than start-up businesses. You may find it easier to secure finance for a franchise.
Is Starbucks a franchise?
Starbucks Coffee doesn't franchise. Even though franchising is a classic, successful growth strategy for myriad beloved, familiar brands, Starbucks does not grant franchises. It's not because franchising isn't a time-tested model for growth. Many companies offer franchises.
Government Franchises legal definition of Government Franchises
Franchise. A special privilege to do certain things that is conferred by government on an individual or a corporation and which does not belong to citizens generally of common right, e.g., a right granted to offer Cable Television service.. A privilege granted or sold, such as to use a name or to sell products or services.
What Is a Franchise, and How Does It Work? - Investopedia
Franchise: A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchiser) proprietary knowledge, processes, and trademarks in ...
Franchise - Definition, Meaning & Synonyms | Vocabulary.com
franchise: 1 n a statutory right or privilege granted to a person or group by a government (especially the rights of citizenship and the right to vote) Synonyms: enfranchisement Types: right to vote , suffrage , vote a legal right guaranteed by the 15th amendment to the US Constitution; guaranteed to women by the 19th amendment universal ...
Franchise Definition & Meaning - Merriam-Webster
franchise: [noun] freedom or immunity from some burden or restriction vested in a person or group.
Franchise Definition & Meaning | Dictionary.com
Franchise definition, a privilege of a public nature conferred on an individual, group, or company by a government: a franchise to operate a bus system. See more.
What is a franchise?
Franchise. A special privilege to do certain things that is conferred by government on an individual or a corporation and which does not belong to citizens generally of common right, e.g., a right granted to offer Cable Television service. A privilege granted or sold, such as to use a name or to sell products or services.
What is franchise in business?
franchise. 1) n. a right granted by the government to a person or corporation, such as a taxi permit , bus route, an airline's use of a public airport, business license, or corporate existence. 2) n. the right to vote in a public election.
Why are franchisees being victimized?
In states without "good cause" laws, franchisees claim that they are being victimized by franchisors who want to reclaim outlets that have proven to be highly profitable. They allege that the franchisor imposes impossible or ridiculous demands that cannot be met to harass the franchisee into selling the store back to the franchisor at a fraction of its value. Company-owned outlets yield a greater profit to the franchisor than the royalty payments received from the franchisee. Other franchisees claim that their licenses have been revoked or not renewed upon expiration because they complained to various state and federal agencies of the ways in which the franchisors operate. Such controversies usually are resolved in the courtroom.
How long do franchisors have to disclose background?
A franchisor must disclose the background of the company—including the business experience of its high-level executives—for the previous five years; and whether any of its executives, within the last seven years, have been convicted of a felony, have pleaded nolo contendere to Fraud, have been held liable in a civil action for fraud, are subject to any currently effective court order or Administrative Agencyruling concerning the franchise business or fraud, or have been involved in any proceedings for bankruptcy or corporate reorganization for insolvency during the previous seven years.
What is a corporation charter?
The charter of a corporation is also called its general franchise. A franchise tax is a tax imposed by the state on the right and privilege of conducting business as a corporation for the purposes for which it was created and in the conditions that surround it. Power to Grant The power to grant franchises is vested in the legislative department ...
What is the purpose of a franchise?
The primary objective of all grants of franchises is to benefit the public ; the rights or interests of the grantee, the franchisee, are secondary. A corporation is a franchise, and the various powers conferred on it are also franchises, such as the power of an insurance corporation to issue an insurance policy.Various types of business—such as water companies, gas and electric companies, bridge and tunnel authorities, taxi companies, along with all types of corporations—operate under franchises.
What is the purpose of a government franchise?
The consideration that is given by a person or corporation in order to receive a franchise from the government can be an agreement to pay money, to bear some burden, or to perform a public duty. The primary objective of all grants of franchises is to benefit the public; the rights or interests of the grantee, the franchisee, ...
What is a franchise?
noun. a statutory right or privilege granted to a person or group by a government (especially the rights of citizenship and the right to vote) synonyms: enfranchisement. see more. see less.
What does "concession" mean?
see more. see less. type of: concession, grant. a contract granting the right to operate a subsidiary business. noun. a business established or operated under an authorization to sell or distribute a company's goods or services in a particular area.
What is a franchise?
Franchise. A special privilege to do certain things that is conferred by government on an individual or a corporation and which does not belong to citizens generally of common right, e.g., a right granted to offer Cable Television service. A privilege granted or sold, such as to use a name or to sell products or services.
What is a franchise in business?
In its simplest terms, a franchise is a license from the owner of a trademark or Trade Name permitting another to sell a product or service under that name or mark.
Why are franchisees being victimized?
In states without "good cause" laws, franchisees claim that they are being victimized by franchisors who want to reclaim outlets that have proven to be highly profitable. They allege that the franchisor imposes impossible or ridiculous demands that cannot be met to harass the franchisee into selling the store back to the franchisor at a fraction of its value. Company-owned outlets yield a greater profit to the franchisor than the royalty payments received from the franchisee. Other franchisees claim that their licenses have been revoked or not renewed upon expiration because they complained to various state and federal agencies of the ways in which the franchisors operate. Such controversies usually are resolved in the courtroom.
How long do franchisors have to disclose background?
A franchisor must disclose the background of the company—including the business experience of its high-level executives—for the previous five years; and whether any of its executives, within the last seven years, have been convicted of a felony, have pleaded nolo contendere to Fraud, have been held liable in a civil action for fraud, are subject to any currently effective court order or Administrative Agencyruling concerning the franchise business or fraud, or have been involved in any proceedings for bankruptcy or corporate reorganization for insolvency during the previous seven years.
What is the purpose of a government franchise?
The consideration that is given by a person or corporation in order to receive a franchise from the government can be an agreement to pay money, to bear some burden, or to perform a public duty. The primary objective of all grants of franchises is to benefit the public; the rights or interests of the grantee, the franchisee, ...
How do franchises get derived?
A franchise can be derived indirectly from the state through the agency that has been duly designated for that purpose, such as the local transportation agency that can grant a franchise for bus routes. Franchises are usually conferred on corporations, but natural persons can also acquire them.
When did franchisors have to disclose their franchises?
In late 1978, it issued regulations, effective October 21, 1979, that require franchisors and their representatives to disclose material facts necessary to make an informed decision about the proposed purchase of a franchise and that establish certain practices to be observed in the franchisor-franchisee relationship.
What is a government franchise?
2. A right granted to another party by a government to engage in certain types of business. For example, a firm may obtain a government franchise to supply certain public services within a limited geographic region.
What is franchising in business?
Franchises are a form of co-partnership, offering mutual benefits. They allow the franchisor to expand sales rapidly and widely, sometimes on a global basis, without having to raise large amounts of capital, by building on the efforts of a highly motivated team of entrepreneurs. Individual franchisees are usually required to contribute the bulk of the investment in physical assets and hence have a personal interest in the success of the venture. For his part, the franchisee obtains access to an innovative product or novel selling method, with the franchisor providing back-up, technical assistance, specialized equipment and advertising and promotion. See VERTICAL MARKETING SYSTEM, BUSINESS STRATEGY, EXTERNAL GROWTH, BUSINESS FORMAT FRANCHISING.
What is franchise in real estate?
Real estate franchises include Century 21, RE/MAX, and ERA . (2) A government grant of some privilege, such as the ability to operate as a corporation or the ability to sell drinks and sandwiches in the county courthouse.
What is a franchise agreement?
1. An agreement between a firm and another party in which the firm provides the other party with the right to use the firm's name and to sell or rent its products. Selling franchise rights is a method of expanding a business quickly with a minimum of capital. See also franchisee, franchisor.
What is a franchise right?
1 a (1) : the right or license granted to an individual or group to market a company's goods or services in a particular territory also : a business granted such a right or license just opened a new fast-food franchise down the street. (2) : the territory involved in such a right.
What is a right granted to a public utility company?
b : a right granted to a public utility company to provide services and to use public land for that purpose.
What is government franchise?
n. 1. A privilege or right granted by law, especially the right to vote in the election of public officials. 2. A special privilege given by government to a...
What is a franchise?
1. a privilege conferred on an individual, group, or company by a government: a franchise to operate a bus system.
What does "suffrage" mean?
1. (Government, Politics & Diplomacy) the franchise the right to vote, esp for representatives in a legislative body; suffrage
What is the definition of a privilege?
1. A privilege or right granted by law, especially the right to vote in the election of public officials.
What is a "authorization"?
a. Authorization granted to someone to sell or distribute a company's goods or services in a certain area.
Where does the word "franchisen" come from?
From Middle English franchisen, fraunchisen, from Old French franchir (stem franchiss-, “to set free”), from franc (“free”). More at frank.
What does "citizenship" mean?
The membership of a corporation or state; citizenship.
Is Dairy Queen a franchise?
The Dairy Queen that is opened with permission by the Dairy Queen company is an example of a franchise.
What is franchise part of?
Individual franchises are part of a brand’s ecosystem, a network that is a pooling of resources and capabilities.
What is franchising in business?
Franchising is a form of marketing and distribution in which the owner of a business system (the franchisor) grants to an individual or group of individuals (the franchisee) the right to run a business selling a product or providing a service using the franchisor's business system.
What are the different types of franchises?
There are three main types of franchises. • Most franchises fall under the business format type where the franchisor licenses a business format, operating system, and trademark rights to its franchisees. • The second type of franchise is product distribution, which is more of a supplier-dealer setup.
How long do franchise fees stay collected?
In addition, fees are collected regularly for as long as the franchisee owns the franchise. In exchange for these payments, the franchisee will receive continued support such as marketing assistance and ongoing training opportunities.
How did franchises help the United States?
Car manufacturers who had been spending enormous amounts of capital tooling their assembly lines found they could develop retail distribution networks using capital provided by independent dealers. Oil companies such as Standard Oil and Texaco also started granting franchises to convenience stores and repair mechanics across the U.S. to efficiently expand their reach.
When purchasing a franchise, is the franchisee required to comply with strict guidelines and rules regarding the operation of the business?
When the purchase of a franchise is made, the franchisee is required to comply with strict guidelines and rules regarding the operation of the business. These guidelines are in place to maintain brand consistency.
Is franchising a success?
No business method or industry sector can guarantee success, and franchising is no exception. If a franchise system has a proven product or service with a well-recognized brand combined with hard-working, well-financed franchisees, the chances of success are very high — but never a 100 percent given. If, on the other hand, the franchise system is under-funded with an ill-conceived business plan that has not been tested properly, and franchisees have been poorly recruited or trained, failure is likely.
What is a franchise government?
A franchise definition government, in a business sense, is the governing (or regulation) of the use of a defined license to do business using the trademark or the name of a company (the franchisor), or the regulation of a license that grants rights to an entity (the franchisee) to sell the products of a company within the provisions defined by the license.
What Is a Franchise?
A franchise is a license or right given to an entity by a body of authority, such as a government or another corporate entity . Some examples of a franchise are:
What is the major characteristic of a product distribution franchise?
The major characteristic of the product distribution franchises is that the franchisor manufactures the product. Another attribute that differentiates the product distribution franchise from the business format franchise is that the product distribution franchisor licenses its trademark and logo to the franchisee. However, the franchisor doesn't provide the franchisee the complete system necessary to run the business successfully.
What were the laws in 1979 that protected franchisees from being scammed?
The laws, referred to as “franchise disclosure laws, ” stated that entities offering the sale of franchises in the state should disclose material facts to help the intending franchisee make an informed decision. These material facts included:
What is business format franchise?
In the business format franchise, the franchisor provides the total system for successfully running the business. In the United States, the majority of franchises are the business format type.
Is Harry Potter a franchise?
Recently, the word “ franchise ” has been extended to cover intellectual products as well, especially with books and movie series; for instance, the “Harry Potter" franchise. The franchise concept has developed into a well-thought-out agreement in which the franchisee (the person granted the franchise) undertakes to do business in compliance with the procedures and methods defined by the franchisor (the body of authority that granted the franchise). In addition, the franchisor pledges to help the franchisee through:
What is a brand name license?
The license to operate a business under a brand name.
