GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
50% - Moderately

Franchise


Synonyms:business franchise, business franchising, chain store, franchising
Filed Under: financial-banking, investments, legal-contracts
Tags: banking, contract, investment, legal
 

Definition of franchise

franchise
1. An contract between a company and another party in which the company gives the other party the right to use the company's name and to sell or rent its products. This right is usually purchased for cash in addition to a royalty fee or a percentage of all sales. Selling franchise rights is a popular method for expanding a business quickly with a minimum of capital.

Related Terms and Acronyms:

  • commercial banking   Commercial banking centres serve small to medium-sized businesses such as franchising, leasing and cash management services.
  • intangible property   Property that does not have value itself, but represents something else. Stocks, bonds and franchises are examples of intangible property. Business furniture and equipment are examples of tangible personal property.
  • International Chamber of Commerce (ICC)   A world business organization that brings business people and experts together to formulate policies in such areas as banking, taxation and the environment.
  • royalty income   Payment for the use and exploitation of certain kinds of property, such as artistic or literary works, patents and mineral rights.
  • tangible personal property (TPP)   Assets other than real estate that physically exist. Business equipment and vehicles are tangible personal property whereas stock certificates and franchises only represent value and are therefore intangible property.
  • wholesale insurance   A form of insurance used by small businesses to provide benefits for employees.

Search the Glossary

Mortgage Calculator
How does an adjustment in the size of your down payment change how much you'll end up paying for your new home? The difference can be staggering. Use our mortgage calculator and see how a simple change can save you tens of thousands of dollars.
Mortgage Calculator
 
Mortgage Rates
Check out how we stack up against our competition and compare our mortgage rates.
Mortgage Rates
 
Compare Today's Best Rates
We have nothing to hide and that's why we post all of Canada's current mortgage rates for you to compare. We strive to maintain our spot at the top of that list each and every day with the best mortgage rate available.
Compare Rates