Definition: a marketing system revolving around a two-party legal agreement, whereby the franchisee conducts business according to terms specified by the franchisor. Popular means for entrepreneur to start and operate a business with great odds of success. Tim hortons, pizzaville, keg restaurant, montana"s cookhouse, first choice haircutters, kwik-copy printing, Franchisee: an entrepreneur whose power is limited by a contractual relationship with a franchising organization. Franchisor: the party in a franchise contract who specifies the methods to be followed and the terms to be met by the other party. A franchise relationship granting the right to use a widely recognized product or name. An agreement whereby the franchisee obtains a entire marketing system and ongoing guidance from the franchisor a situation in which a franchisee owns more than one franchise from the same company e. g. second cup, country style donuts, booster juice.