Franchise
A licensed brand and operating system; the buyer purchases the franchisor’s approval to operate, not only the local assets.
Last updated September 5, 2026
A franchised business is bound by a franchise agreement that covers royalties, brand standards, territory, training, and transfer rules. Buying the local shop almost always requires franchisor approval, a transfer fee, and often training for the new owner. The Franchise Disclosure Document (FDD) is the primary disclosure package. Independent “lookalike” shops are not franchises unless a franchise agreement exists.