The right to use a specific business' name and sell its products or services in a given territory is a Franchising agreement.
A franchise is the right to use a specific business's name and sell its products or services in a given territory. Franchises are one of the two special forms of business ownership that are additions to the three major forms of business ownership.
Some people, uncomfortable with the idea of starting their own business from scratch, would rather join a business with a proven track record through a franchise agreement.
A franchise agreement is an arrangement whereby someone with a good idea for a business (the franchisor) sells the rights to use the business name and sell a product or service (the franchise) to others (the franchisees) in a given territory. A franchise can be formed as a sole proprietorship, a partnership, or a corporation. Franchises provide distinct advantages of starting and managing a small business, but there are potential drawbacks as well.
Therefore, we can conclude that Franchising agreement is the right to use a specific business' name and sell its products or services in a given territory.
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