FRANCHISE
franchise (fran-chIz), n.1. The right to vote. — Also termed elective franchise. [Cases:
Elections 1. C.J.S. Elections §§ 1(1, 10), 2.] 2. The right conferred by the government to engage
in a specific business or to exercise corporate powers. — Also termed corporate franchise; general
franchise. [Cases: Franchises 1.] “When referring to government grants (other than patents, trademarks, and copyrights), the
term ‘franchise’ is often used to connote more substantial rights, whereas the term ‘license’
connotes lesser rights. Thus, the rights necessary for public utility companies to carry on their
operations are generally designated as franchise rights. On the other hand, the rights to construct
or to repair, the rights to practice certain professions, and the rights to use or to operate
automobiles are generally referred to as licenses.” 1 Eckstrom’s Licensing in Foreign and
Domestic Operations § 1.02 [3], at 1-10 to 1-11 (David M. Epstein ed., 1998).
“In a violent conceptual collision, some franchisors maintain that a franchise is merely an
embellished license and therefore revocable at will. Franchisees contend that a franchise is a
license coupled with an interest, not subject to unlimited control by franchisors. As a result of this
disagreement, legislative draftsmen have had difficulty defining ‘franchise.’ ” 1 Harold Brown,
Franchising Realities and Remedies§ 1.03 [1], at 1-17 (1998).
franchise appurtenant to land.Rare. A franchise that is used in connection with real property
and thus is sometimes characterized as real property.
general franchise.A corporation’s charter.
special franchise.A right conferred by the government, esp. to a public utility, to use property
for a public use but for private profit. [Cases: Franchises 1.]
- The sole right granted by the owner of a trademark or tradename to engage in business or
to sell a good or service in a certain area. 4. The business or territory controlled by the person or
entity that has been granted such a right.
commercial franchise.A franchise using local capital and management by contracting with
third parties to operate a facility identified as offering a particular brand of goods or services.
sports franchise. 1. A franchise granted by a professional sports league to field a team in that
league. 2. The team itself.
trial franchise.A franchise having an initial term of limited duration, such as one year.
franchise,vb. To grant (to another) the sole right of engaging in a certain business or in a
business using a particular trademark in a certain area.[Blacks Law 8th]