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The word franchise comes from an old French dialect and means privilege, liberty, or freedom. From a business perspective, the concept can be defined in several ways. First, it can be defined as a form of business organization in which an entity that has a successful product or service (franchisor) licenses its trademark and method of doing business to another entity (franchisee) in return for an initial fee and ongoing royalty payments. The concept may also be defined as a business strategy that allows one party (the franchisee) to use the logo, trademarks, and operating systems of another business entity (the franchisor) in exchange for initiation and continuing fees. Franchise may also be defined as a business system in which semi-independent business owners (franchisees) under ...

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