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JFA's Definition of Franchise

Definition of Franchise by Japan Franchise Association

A Franchise is a continuing relationship between one business concern (called a Franchisor) and another business concern (called a Franchisee) where a Franchiser and a Franchisee enter into a contractual agreement, the Franchiser granting the Franchisee the right to use the signs representing the Franchisor’s business, which signs include the Franchisor’s logo, service mark, trade name and others as well as the Franchisor’s management know-how, and to conduct the product sales and other businesses which bear the same image as the Franchisor’s; the Franchisee paying the consideration to the Franchisor in return, providing the fund required for the business, and operating the business under the Franchisor’s guidance and assistance.

 

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