Economic Definition of franchising. Defined.
Offline Version: PDF
Term franchising Definition: A special type of vertical integration where one firm (the franchisor) sells a proven method of doing business or authorizes the right to carry the brand name to an individual or to another firm (the franchisee). Depending on the contract to conduct this subsidiary business, the franchisee usually operates under the supervision of the franchisor in exchange of a fee.
« fractional-reserve banking | free enterprise »
Permalink: https://glossary.econguru.com/economic-term/franchising