Dictionary of Marketing Terms: brand franchise
brand franchise
- arrangement between a brand name manufacturer and a wholesaler or retailer that gives the wholesaler or retailer the exclusive right to sell the brand manufacturer's product in a specific territory. This arrangement is usually done by contractual agreement over a period of time. A brand franchise allows the wholesaler or retailer to sell the product in a noncompetitive market and therefore to set price limitations as the traffic will bear.
- loyalty toward a brand by consumers. See also brand loyalty.
