What is Franchising?

Legal Definition
Franchising is the practice of the right to use a firm's business model and brand for a prescribed period of time. The word "franchise" is of Anglo-French derivation—from franc, meaning free—and is used both as a noun and as a (transitive) verb. For the franchisor, the franchise is an alternative to building "chain stores" to distribute goods that avoids the investments and liability of a chain. The franchisor's success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because they have a direct stake in the business.

Thirty-three countries—including the United States and Australia—have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect impact on franchising. Franchising is also used as a foreign market entry mode.
-- Wikipedia
Legal Definition
Contractual selling or renting of a business model around specific products and/or services at specific locations under specific arrangements. The franchiser contractually gives the franchisee use of a brand name or trademark or trade-name, and certain business systems and processes. The process are how to specifically produce and market franchise goods or services. A one-time franchise fee plus a percentage of sales revenue as royalty earns the franchise. The franchiser achieves rapid business and earnings expansion at minimum capital outlay. It includes (1) immediate brand recognition, (2)marketable, profitable products, (3) standard building layout and decorations (4) details for running and promoting business, (5)employee hiring and training, and (6) ongoing help in promoting and upgrading of the products.