Franchising agreement

Agreement under which the franchisor makes a business concept available to the franchisee, with the franchisee becoming part of the franchisor’s marketing structure and acting vis-à-vis third parties as representative of a sales or distribution chain. In this regard, the franchisee normally remains legally and financially independent and compensates the franchisor with a franchise fee in exchange for the marketing tools, intellectual property rights, and know-how provided by the latter.