franchise

Vocabulary Word

Definition

'Franchise' is a legal and business relationship between the owner of a trademark, brand, or business model (the franchisor) and an individual or company (the franchisee) who is authorized to operate a business using the same brand or model.

Examples in Different Contexts

In retail, owning a 'franchise' can be a lucrative venture due to brand recognition. A retail consultant might say, 'Opting for a franchise model can expedite market penetration and brand establishment due to existing consumer trust in the franchisor’s brand.'

Practice Scenarios

Tech

Scenario:

Our application's success on domestic soil encourages us to think about overseas expansion. What are our options?

Response:

Franchising our software could allow us to penetrate international markets without losing control over our unique product.

Marketing

Scenario:

How can our product make a meaningful impact globally while maintaining its identity and unique value proposition?

Response:

As a franchise, our product can benefit from increased visibility and recognition, reinforcing its unique value proposition.