Definition: Affiliation to a franchising chain

General concept

A franchising chain gathers retailers linked to suppliers (producers or wholesalers) by a contract in compliance with the European charter of franchising. In return for a financial contribution, the retailer benefits from technical aid and from the supply of goods generally distributed in a limited fashion. The franchisee cannot take part in the strategic decisions of the franchiser.

Several types of franchise can be distinguished according to their object: industrial franchise concerns the manufacturing of goods, distribution franchise concerns the sale of goods, and service franchise concerns the supply of services.