Where authorisation is granted to a distributor to sell a company’s goods. A franchise may be granted to an individual or group to market a company’s goods or services. An individual who purchases and implements a franchise is called a “franchisee.” The franchisee buys a franchise from the “franchisor”. The franchisee is obliged to concur with various guidelines previously established by the franchisor and commonly the franchisee has to pay a reoccurring franchise royalty fee, non inclusive of the original singular franchise fee.

See also:
Distribution
Market development