A commercial agreement between a party that owns a trade name or trademark and a party that sells or distributes goods or services using that trade name or trademark is known as a .

Question

Quizplus · Accepted Answer

A franchise relationship is a commercial agreement between a party that owns a trade name or trademark (franchisor) and a party that sells or distributes goods or services using that trade name or trademark (franchisee). The franchisor grants the franchisee the right to use their intellectual property, marketing materials, and business know-how in exchange for ongoing fees and royalties. This allows the franchisee to benefit from an established brand and business model, while the franchisor expands their reach and revenue through licensing their trademark.

A Commercial Agreement Between a Party That Owns a Trade