C1noun 2K

Franchise

UK /["/ˈfræntʃaɪz/"]/ US /["/ˈfræntʃaɪz/"]/ Pronunciation

Definition

formal permission given by a company to somebody who wants to sell its goods or services in a particular area; formal permission given by a government to somebody who wants to operate a public service as a business

Listen to definition

In simple words: A business model where a person can sell a company's products or services.

Examples

• The fast-food chain offers a franchise to aspiring entrepreneurs.
• She bought a franchise to sell that popular brand's products in her city.
• The team has held the basketball franchise for over two decades.
• Owning a sports franchise can be a lucrative business investment.
• Consumers are demanding more transparency in franchise agreements.
• The government granted the company a franchise to operate the railway.
• The movie studio expanded its franchise by producing sequels and merchandise.
• He exercised his right to vote, exercising his franchise with pride.
• The video game franchise has fans all over the world.

Usage notes

Used when discussing business opportunities. Generally appropriate in formal and casual contexts, but may not be understood in non-business discussions.

Grammar pattern

franchise + object

Memory hint

Sounds like 'French eyes' - picture French chefs in a restaurant chain.

Collocations

• fast-food
• rail
• sports
• have
• hold
• own
• system
• business
• company
• franchise for
• on a franchise basis
• fast-food
• rail
• sports
• have
• hold
• own
• system
• business
• company
• franchise for
• on a franchise basis
• democratic
• universal
• limited
• qualify for
• exercise
• extend

Synonyms

• chain
• license
• branch
• dealership

Antonyms

• independence
• solo business

Common mistakes

• Confused with 'franchising' which is the process of opening a franchise.
• Using the term to refer only to fast-food chains when it can apply to other businesses too.
• Mixing up 'franchise' with 'patent' as both relate to business rights.