Franchise
Franchise, in business, a grant, or authorization, for a firm to use something belonging to someone else. There are both government and private franchises.
Examples of government franchises—which may be granted by a local, state, or national government—are agreements permitting firms such as utility and transportation companies to provide service in the area under the jurisdiction of that government. Such services usually require the use of public property. A franchise tax is paid by the company for the privilege of doing business in that location.
A private franchise is the granting of permission by a person or firm holding the right to something to another person or firm to share in that right. The person or firm receiving the franchise is called the franchisee, and generally pays a fee and a royalty to sell a product under the brand name and with the methods of the franchiser. In return, the franchisee benefits from the franchiser's advertising, training, and advice, and the established reputation of the product. The franchiser reserves the right to withdraw the franchise if certain standards are not met. Common types of franchised businesses include fast-food restaurants, motels, auto-repair shops, and retail stores.