A franchise consists of a franchise agreement between the franchisor and the franchisee. Based on this agreement, the franchisor reserves the right to control the usage of their logo, trademark, service mark and operational know-how. The franchisee is required to carry out the sales of products and other business using this single image for which the trademark represents.
A franchise refers to the continuous business relationship between the franchisee and the franchisor where the former makes a payment to the latter for the use of the franchisor’s trademark as stipulated in the franchise agreement and is also responsible for covering all costs necessary to open and run the business, and where the franchisor in return provides support and advisory services to the franchisee to effectively operate the business.