Basically a contract to distribute and sell a parent company’s goods and/or services, usually in a specific geographic area. This is a right or license granted to another to use the recognized trademark and trade name, and the proprietary procedures, of the franchisor, in connection with the sale of a service or good. The franchisor typically dictates to the franchisee to a certain extent the procedures that the franchisee must follow in the operation of the franchised business.