What is a grant or right to sell a parent company's product within a specific area called?

The concept of a franchise involves a legal and commercial relationship between the owner of a trademark, trade name, or business model (the franchisor) and an individual or business (the franchisee) who is granted the right to sell the franchisor's products or services within a specific geographic area. This agreement typically includes the rights to use the franchisor's branding, operational methods, and support systems, alongside the responsibility for adhering to established guidelines set forth by the franchisor.

In this context, a franchise allows the franchisee to operate under the established name and business model of the parent company, which can significantly reduce the risks associated with starting a new business due to the recognition and marketing benefits of an established brand. This makes it distinct from other business arrangements such as dealer agreements, licenses, or agency agreements, which do not provide the same comprehensive rights and support typically afforded by a franchise.