What is a Franchise?
A franchise has multiple types of definitions that describes its market. It is a privilege that is sold to use a name or to sell your products and services. It’s a license from the owner of a “trademark” that gives another person the ability to sell under that name. It can be defined as a special privilege to have the ability to do things that has been conferred by the government on an individual, or a company/corporation that doesn’t belong to the citizen’s common right. It can be a franchise of a professional sports association, which defines itself as a privilege to field a team in a certain area under the auspices of the league that issued it.
Are there different types of Franchise?
Yes, there are three different types such as a business format franchise, product distribution and management franchise. A business format franchise is a type of franchise that is defined as a typical franchise. It’s when a person gives the rights to their trademark to sell a product for a fee and is the most popular type of franchise system used. The next is a product distribution franchise that is almost the same as a supplier and distributor relationship. This means that the franchiser is supposed to supply the product that the distributor can sell. The last is the management franchise is when the franchise just focuses on the franchisee managing the franchise.
What forms are used for Franchises?
The most popular forms are Sample Letter for Franchise Proposal, Franchise Agreement – Single Location, with Form of Personal Guaranty and Collateral Assignment of Lease, Unit Franchise Agreement, Master Franchise Agreement, and Asset Purchase – Letter of Intent.