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franchise

Definition

A form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee. Some of the most popular franchises in the United States include Subway, McDonalds, and 7-Eleven.

Identifying and Profiting off Companies Emerging from BankruptcyOnce a company emerges from bankruptcy, holders of the company's debt usually don't get paid off in cash (the company usually doesn't have much cash), but rather mostly newly issued bonds or common st ... Read more