Definition: A business arrangement in which one party grants another rights to operate using its brand and business system under an agreement, commonly involving fees and operating standards.
Example
An independently owned brokerage operates under a national franchise brand and pays agreed fees.
Keep the distinction clear
The franchise agreement does not replace state brokerage licensure or the supervising broker's duties. Brand affiliation and legal ownership are separate questions.
Related terms
Real Estate Brokerage ยท Trade Name
Keep studying
References: FTC: buying a franchise
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