Franchise Legal Meaning and Definition

Here is a simplified definition of the legal term Franchise.

Franchise (noun): A franchise refers to the legal and business arrangement granting specific rights, permissions, or privileges, such as using a brand name, to an individual or entity. This is usually done under special terms and conditions stipulated in an agreement, often in exchange for certain fees or considerations. For example, the operation of a branded fast food chain by a local business owner under the umbrella of the established brand.