Franchise
A franchise is a legal and commercial relationship between the owner of a Trademark, service mark, or trade name (the franchisor) and an individual or company (the franchisee) that is authorized to carry on a business under that name. The franchisee pays a fee for the right to operate a business using the franchisor’s brand, Business Model, and support systems.
Examples of franchises include:
- McDonald’s: A global fast-food chain where franchisees operate restaurants under the McDonald’s brand.
- Subway: A sandwich shop franchise that allows individuals to own and operate their own Subway locations.
- Marriott Hotels: A hospitality franchise offering the opportunity for franchisees to run hotels under the Marriott name.
Cases involving franchises may include:
- California Franchise Law: Legal disputes regarding franchise disclosures and compliance with state regulations.
- Federal Trade Commission (FTC) Regulations: Issues concerning the franchisor’s obligation to provide accurate and complete disclosure to potential franchisees.