Word

franchise

noun C1

/ˈfɹænt͡ʃaɪ̯z/

Meanings

noun

A business that is licensed to use another company’s brand, products, and operating system.

noun

A large entertainment brand that includes multiple related films, games, books, or other products.

Definition

A franchise is a business that operates under another company’s brand and system in exchange for fees and ongoing payments.

A franchise is a way of running a business using a well-known company’s name, products, and operating methods. The local owner (the franchisee) pays an initial fee and usually ongoing royalties to the parent company (the franchisor). In return, they get brand recognition, training, and support, but they must follow strict rules and standards.

Examples

I’m considering buying a franchise because I value a proven model over inventing everything from scratch.
You can often spot a franchise by how consistent the menu and store layout are from one city to the next.
He expanded his career by managing a franchise while finishing an MBA in the evenings.
She built a loyal local customer base, even though the franchise required her to follow strict branding rules.
They chose a franchise after comparing the training support, supply chain reliability, and ongoing fees.

Common mistake

Learners often confuse franchise (a licensed business or brand) with branch (a location owned directly by the same company).