Franchise definition Wikipedia Franchise definition Wikipedia refers to the methods of practicing and using another person's philosophy of business. The franchisor grants the independent operator the right to distribute its products, techniques, and trademarks for a percentage of gross monthly sales and a royalty fee. Various tangibles and intangibles such as national or international marketing, training, and other support services are commonly made available by the franchisor. Agreements typically last five to twenty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees. The term "franchising" is used to describe business systems which may or may not fall into the legal definition provided above. For example, a vending machine operator may receive a franchise for a particular kind of vending machine, including a trademark and a royalty, but no method of doing business. This is called "product franchising" or "trade name franchising". A franchise agreement will usually specify the given territory the franchise definition Wikipedia retains exclusive control over, as well as the extent to which the franchisee will be supported by the franchisor the franchisor typically earns royalties on the gross sales of the franchisee. In such cases, franchisees must pay royalties whether or not they are realizing profits from their franchised business. Cancellations or terminations of franchise agreements before the completion of the contract have serious consequences for franchisees. Franchise agreement terms typically result in a loss of the sunk costs of the first-owner franchisees who build out the branded physical units and who lease the branded name, marks, and business plan from the franchisors if the franchise is canceled or terminated for any reason before the expiration of the entire term of the contract.[citation needed] (Item 15 of the Rule of the Federal Trade Commission requires disclosure of terms that cover termination of the franchise agreement and the terms substantiate this statement) Franchise Definition Franchising refers to the methods of practicing and using another person's philosophy of business. The franchisor grants the independent operator... Franchising Ideas Here are your top 10 most requested business franchise definition Wikipedia ideas according to citizens in Toledo... Other related Articles: 4 Important Franchise Question to ask Before Investing Feb 26, 2010 These are the 4 most important questions to ask before you invest in a franchise... Small Business to Franchise Owner Jan 30, 2010 6 months into her small business, Bev Halisky wanted to expand her "Driving Miss Daisy" transportation service for seniors and the disabled into a franchise. ...