What is a franchise? According to the International Franchise Association, the industry’s lobby group, “A franchise is the agreement or license between two legally independent parties which gives:
• A person or group of people (franchisee) the right to market a product or service using the trademark or trade name of another business (franchisor)
• The franchisee the right to market a product or service using the operating methods of the franchisor
• The franchisee the obligation to pay the franchisor fees for these rights
• The franchisor the obligation to provide rights and support to franchisees1
Franchising is a commercial relationship between two entities in which one of the entities, the franchisor, grants the other entity, ...