WHAT IS A FRANCHISE?

Concept of Franchise; It is a type of commercial relationship established through contracts between businesses. Businesses are constantly searching to survive. In order to maintain its existence and sell the goods and services it produces, sales personnel, sales representatives, dealers, regional distributors and agencies are considered as options. In addition, the franchising distribution system, which was first implemented by the Singer company in the United States, emerged and developed rapidly. Franchising has made a name for itself with the expansion and growth of McDonald's company and its implementation worldwide. Franchising is an English dictionary, its Turkish equivalent is privilege.
It means freedom and privilege in taxation and customs affairs and is derived from the French word 'afffranchir'. According to the definition of the National Franchising Association (UFRAD), franchising; It is the whole of a long-term and continuous business relationship that arises from the privilege that the party holding the concession right of a product or service gives to the second party to carry out commercial business, by providing information and support regarding the management and organization of the business within a certain period of conditions and limitations.
Franchising is a contractual relationship between two independent parties. Franchising is a marketing and distribution method in which a well-known brand, an established image, is made available to an independent investor for a certain price, within certain standards, in a certain region, for a certain period of time, and the franchisor company provides assistance in management, organization, training and supply issues. The document that creates franchising is the contract between the franchisor and the franchisee.

The franchise agreement is a legal document that is binding and imposes mutual rights and obligations on both parties. It is a normal and ordinary practice for this contract to be written in great detail and to cover almost every issue. Although jurists and various scientists and organizations define it in different ways, essentially all definitions and the meaning they express are almost the same. The concept of franchising will be better understood when the concepts related to franchising are specified.