How does franchising organize relationships between franchisors and franchisees?

"Franchise agreement: A contract setting out the terms of a franchising arrangement, including the rules for running the franchise, the services provided by the franchisor, and the financial terms. Under the contract, the franchisee is allowed to use the franchisor’s business name, trademark, and logo. Franchisee: In a franchising arrangement, the individual or company that sells the goods or services of the franchisor in a certain geographic area. Franchising: A form of business organization based on a business arrangement between a franchisor, which supplies the product or service concept, and the franchisee, who sells the goods or services of the franchisor in a certain geographic area. Franchisor: In a franchising arrangement, the company that supplies the product or service concept to the franchisee."