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F

Franchise

A type of license that allows a business owner to have access to a larger business’s secret sauce (processes, trademarks, and marketing) in order to carry out a subsidiary product or provide a service under the business’s name. The best example here is fast food: if you open a Pinkberry franchise, you are getting a license to run your Pinkberry with the larger company’s support in exchange for paying initial start- up and annual licensing fees (and agreeing to play by their rules).

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