What is Franchise?

A definition of Franchise

“A franchise is a business model that allows an individual or group to operate a business using the branding, operational model, and support of an established company or brand.”

Franchise in Business Glossary - What is a Franchise?

Business Glossary > What is Franchise?


Examples of Franchise in a Sentence:

The restaurant everyone loves is now available for you to franchise.

My friend decided to open a franchise of a popular coffee brand.

Running a franchise requires adherence to the franchisor’s guidelines.

Why is Franchise Important in Business?

Understanding franchises is crucial for both entrepreneurs and investors as they offer a way to expand business reach with lower risks compared to starting independently. Recognizing the benefits and obligations of a franchise agreement is vital to success.

Know Your Niche Inside Out by Tomorrow: Learn everything you need to know about a niche from a report rushed to you in 24 hours, (or spend the next 3 weeks researching).

Associated Terms

Here are some associated business terms and synonyms for “Franchise”:

  • Licensing
  • Chain Store
  • Business Model

Subway Franchise

Subway is one of the largest franchise systems in the world, having expanded globally through this model since its inception. Franchisees benefit from Subway’s global brand recognition and established operational guidelines.

Final Notes on Franchise

Franchising provides a structured business opportunity with reduced risks, but potential franchisees need to understand contractual obligations and the need for compliance with the franchisor’s rules and standards.


This has been a definition of Franchise meaning.

Explore more from our Business Term Glossary for Entrepreneurs