Final answer:
A franchise grants the right to use a brand, including its associated trademarks, allowing franchisees to operate businesses under an established brand and receive support from the franchisor.
Step-by-step explanation:
A franchise is an organization that permits others to use its brand name, products, and processes. This arrangement allows organizations to start businesses following a model designed by the franchisor. In the world of trademarks, a franchise can benefit from trademarks that are legal identifications of a product recognized by consumers, such as the Nike "swoosh" or Chiquita bananas.
Typically, the franchisee pays a franchise fee along with royalty fees for the rights to operate under the franchisor's established brand name. The franchisor also often provides support such as training, supply chain assistance, and help in setting up operations. It's important to remember that trademarks are granted based on the distinctiveness of form and style rather than the idea itself, and they can be renewed indefinitely as long as they are in active use.