What does a franchise agreement allow a buyer to do?

A franchise agreement allows a buyer to use the franchisor's brand and methods. This type of agreement enables the franchisee to operate under the established name and reputation of the franchisor while following specific operational guidelines set forth in the agreement. The franchisor typically provides training, marketing support, and a proven business model, which helps the franchisee to succeed within the framework of the larger brand.

In contrast, opening a completely independent business does not involve any use of the franchisor's brand or operational support, which is fundamental to a franchise relationship. Similarly, operating without any supervision misrepresents the nature of franchising, as franchisees usually adhere to the franchisor’s established procedures and oversight to maintain brand consistency. Starting an entirely new product line does not align with the purpose of a franchise, as franchise agreements are specific to the brand and products that the franchisor has already developed.