The Contractual Aspect of Franchising

From the public’s point, franchises seem to be like any other chain of branded businesses, they are very different. In a franchise system, the owner of the brand cannot manage and rule over the locations that serve consumers their products and services on a daily basis. Putting forth service for the consumer is the role and responsibility of the franchisee.

Franchising is a contractual relationship existing between a franchisor and a franchisee that enables the business owner to utilize the licensor’s brand and process of doing business to pass on the products or services to consumers. Even if every franchise is a license, not every license is a one considered as a franchise by the law.

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