• Franchise, definition of:
                  from: The Columbia Encyclopedia, Sixth Edition.  2001-05.

      In government, a right specifically conferred on a group or individual by a government, especially the privilege conferred by a municipality on a corporation of operating public utilities, such as electricity, telephone, and bus services. Franchises may not be revoked without the consent of the grantee unless so stipulated in the contract. They may, however, be forfeited by the grantee's violation of terms, and the government may take back granted rights by eminent domain proceedings with tender of just compensation. Franchise provisions usually include tenure; compensation to the grantor; the services, rates, and extensions; labor and strike regulations; capitalization; and reversion to the grantor.

     The term franchise also refers to a type of business in which a group or individual receives a license from a corporation to conduct a commercial enterprise. Corporate franchises enable a franchisee to market a well-known product or service in return for an initial fee and a percentage of gross receipts. The franchiser usually provides assistance with merchandising and advertising. Major franchise networks, which have grown rapidly in the United States since the 1960s, include fast-food restaurants, gasoline stations, motels, automobile dealerships, and real-estate agencies, and the system has expanded into many other fields.

     In politics, the franchise is the right conferred on an individual to vote. In the United States, the states, with some restrictions by the U.S. Constitution, govern the qualifications of voters. By the Fourteenth and Fifteenth amendments, states were forbidden to deny suffrage to male residents over 21 years of age "on account of race, color, or previous condition of servitude." The Nineteenth Amendment conferred suffrage upon women, and the Twenty-sixth Amendment lowered the voting age to 18 . See voting.

    See C. Williamson, American Suffrage from Property to Democracy, 1760–1860 (1960, repr. 1968); C. L. Vaughn, Franchising (1974).

http://www.franchise.org/

To keep up with the franchising world as it continues to flourish and adapt to the ever-evolving economic environment, the International Franchise Association has wealth of resources to keep you adequately equipped. Here you can learn about ways to become an active member of that community — a franchising community that's vital to the global economy. A recent PricewaterhouseCoopers study found that the franchising sector generates 18 million jobs in the United States alone and yields $1.53 trillion in economic output. If you're considering joining the ranks of those who own and operate more than 760,000 franchise establishments get ready to learn all about this exciting way of doing business. You've arrived at the most comprehensive one-stop-shop on the Internet to help guide you in your investigative process.

http://www.entrepreneur.com/magazine/entrepreneur/2007/january/172034.html

Ever wish you could sit down with the leading U.S. franchisors and simply ask, "What are you looking for in a franchisee?" Or better yet, "What do I need to succeed as a franchisee?" Wish no more. We got the answers for you by asking the franchisors who submitted applications for this year's Franchise 500® what they consider the keys to franchisee success.

The collected results of our exclusive survey offer a most interesting insight into the mind-sets of the people who run the nation's great franchise systems. If you can master the valuable skills and qualities they're looking for, you'll certainly have a leg up when you apply for a franchise.

http://www.entrepreneur.com/magazine/entrepreneur/2005/january/74994.html

You'll find many routes to owning a small business and several intriguing paths to participating in a franchise business. It's not "one size fits all"-not even close. If you think of franchising in one dimension, you'll limit your opportunities. There are so many ways to get into franchising beyond building and operating a new pizza restaurant. Keep your ears open for opportunity, and prepare to be flexible. With the right approach to franchising, you'll quickly find yourself on the road to career satisfaction and financial success.

http://en.wikipedia.org/wiki/Franchising

In the United States, franchising falls under the jurisdiction of a number of state and federal laws. Franchisors are required by the Federal Trade Commission to have a Uniform Franchise Offering Circular "UFOC" to disclose potential franchisees about their purchase. This disclosure must take place 10 business days prior to solicitation (franchisor agrees to offer the prospective franchisee a license). Each state may require the UFOC to contain specific requirements. This means that many franchisors have a unique UFOC for each state or sometimes are able to include all state specific requirements into one document.

There is no federal registry of franchising or any federal filing requirements for information, rather, states are the primary collectors of data on franchising companies, and enforce laws and regulations regarding their spread.

In Russia, under ch. 54 of the Civil Code (passed 1996), franchise agreements are invalid unless written and registered, and franchisors cannot set standards or limits on the prices of the franchisee's goods. Enforcement of laws and resolution of contractual disputes is a problem: Dunkin' Donuts chose to terminate its contract with Russian franchisees that were selling vodka and meat patties contrary to their contracts, rather than pursue legal remedies.[citation needed]

Because litigation is expensive, the majority of franchisors have inserted mandatory arbitration clauses into their agreements with their franchisees. Since 1980, the U.S. Supreme Court has dealt with cases involving direct franchisor/franchisee conflicts at least four times, and three of those cases involved a franchisee who was resisting the franchisor's motion to compel arbitration. Two of the latter cases involved large, well-known restaurant chains (Burger King and Subway); the third involved Southland Corporation, the parent of 7-Eleven.

http://www.franchise.co.nz/

The statistics for failed franchise relationships are rather better than for failed marriages. But problems do arise and, although there are usually problems on both sides, sometimes one party is at fault. So if you've got a problem, how do you fix it? Communication is the first step, court action is the last. In between there is mediation, of course, and there are several stories on this website that outline the process. But another option is to make a formal complaint to the Franchise Association of New Zealand, and that's why we've just added a new story on precisely that topic. It's another small contribution to help make franchising even better for everyone and I hope you find it helpful.