noun

franchise

/ˈfrænˌtʃaɪz/ · say it: FRAN·chyz

a license to operate a business under an established brand

In Business & Marketing

In more detail

1. (noun) a business licensed by a larger company to operate under its name and brand in a particular area

2. (noun) the right or permission granted by a company to operate its business in a particular way

3. (noun) a sports team that is part of a major league

Examples

She owns a McDonald's franchise in downtown Chicago.
The company grants franchises to qualified entrepreneurs.
The franchise won the championship last year.

How to use franchise

Franchise commonly refers to the business model where a parent company grants rights to operate under its brand, used in commercial and sports contexts. It emphasizes the licensed nature of the operation and the relationship between the grantor and operator. In sports, it refers to the organization itself as a member of a league, often with historical continuity and value.

Common phrases

franchise owner
franchise agreement
open a franchise
franchise fee
franchise model
fast-food franchise

Synonyms

license · permit · charter · concession · branch

Word family

franchisee (noun) · franchisor (noun) · franchisable (adjective)

A common mistake

Learners sometimes confuse the franchisor (company granting the franchise) with the franchisee (operator of the individual franchise), or use 'franchise' to mean the physical location rather than the business right itself.

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