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A franchise is the agreement or license between two legally independent parties which gives: â¢ a person or group of people (franchisee) the right to market a product or service using the trademark or trade name of another business (franchisor) â¢ the franchisee the right to market a product or service using the operating methods of the franchisor â¢ the franchisee the obligation to pay the franchisor fees for these rights â¢ the franchisor the obligation to provide rights and support to ...
The minimum guarantee is the most frequent deal breaker in brand. licensing negotiations. While the licensee tries to minimize risk and. future financial obligations, the licensorâs intention is to secure as. much of his (unsecure) future revenues from the deal as possible.