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Franchises and Franchising Law

Franchise law, also termed franchising law, pertains to the permittance or license that allows an individual or entity to market the goods or services of a company in a specific region or territory under the company’s brand name or trademark. Franchising allows the licensing parent company (franchisor) to expand more quickly while passing along the expense to the persons or entities who license the business franchise rights (franchisees).

Franchise is also commonly used to refer to a grant of the right to operate and share in the profits of a business or sell goods or services under a brand or chain name. Franchise may mean the right one has to operate a store or sell goods or services under a franchise agreement. In a franchise business relationship, the owner (the franchisor) licenses others (the franchisees) to operate outlets using business concepts, intellectual property (such as trademarks and tradenames owned by the franchisor), and corporate goodwill to another company or individual.