Franchising definition
Posted: Wed Apr 23, 2025 5:01 am
The first franchising network in Italy was born in 1970 and in all these years this commercial affiliation formula has ground out profit after profit, so much so that it is the preferred choice for those who wish to embark on an entrepreneurial adventure. But what is technically meant by the term franchising and who are its main players? Also because we are talking about a sector that records thousands of billions of euros in turnover every year and provides work to over 200,000 people.
Literally, the word franchising means privilege or franchise and mint data derives from the French franchise which means to grant license.
Franchising is a contract stipulated between 2 legal entities, through which a company, which we will call franchisor or franchisor , allows another, called franchisee or affiliate , to carry out a specific activity using distinctive signs, patents, complex technological and organizational knowledge of the grantor and under the control of the latter. The purpose of franchising is to create large distribution networks of consumer goods using a single commercial name: generally the contract includes exclusivity clauses.
Literally, the word franchising means privilege or franchise and mint data derives from the French franchise which means to grant license.
Franchising is a contract stipulated between 2 legal entities, through which a company, which we will call franchisor or franchisor , allows another, called franchisee or affiliate , to carry out a specific activity using distinctive signs, patents, complex technological and organizational knowledge of the grantor and under the control of the latter. The purpose of franchising is to create large distribution networks of consumer goods using a single commercial name: generally the contract includes exclusivity clauses.