Franchising

upright=1.35|thumb|right|A McDonald's franchise in [[Moncton, New Brunswick, Canada]] Franchising is a business practice where a company licenses its business model to another company, or more precisely, where the franchisor licenses some or all of its knowhow, procedures, intellectual property and other rights to sell its branded products and services to a franchisee. In return, the franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a franchise agreement.

legal, binding contract between a franchisor and franchisee