Franchising

Franchising is when an organization gives another organization the right to use its name and operating methods.

Definition

According to Management by Robbins and Coulter (14th edition),

Franchising. An organization gives another organization the right to use its name and operating methods.

According to the Strategic Management by David and David (15th edition),

Franchising. An effective means of implementing forward integration whereby a franchisee purchases the right to own one or more stores/restaurants of a chain firm.

According to the HRBoK Guide,

Franchising. A business model that involves licensing. Selling a license for the use of a trademark, product, or service in order to do business a certain way and receiving ongoing payment for the license.