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franchise

Franchise has different meanings under the law: 

• Franchise is commonly used to refer to a relationship wherein a business organization, called a franchiser , in exchange for a fee and with the franchisor's guidance, allows another business, called the franchisee , to operate under the franchiser's trade name and offer the franchiser's products or services.
• A franchise may refer to a right granted by the government to a corporation , to operate as a legal business entity or provide some service of a public nature in a certain geographic region.
  • Examples of such a right are taxi permits, bus routes, an airline's use of a public airport, a business license , or a corporate existence.

   

• The right to vote in a public election is also referred to as a franchise.
• In the context of petroleum marketing practices, 15 U.S.C § 2801 , defines franchise as “any contract between a refiner and distributor , a refiner and a retailer , a distributor and another distributor, or a distributor and retailer under which a retailer or distributor uses the trademark of an oil company in connection with the sale of motor fuel.”

[Last reviewed in March of 2022 by the Wex Definitions Team
]

Keywords

• llcs-corporations-partnerships

Wex

• COMMERCE

• commercial activities

• business law

• business organizations

• contracts

• corporations

• wex definitions

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• commercial transactions

• legal education and practice