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A vertical relationship is a relationship that is a hierarchal relationship. Therefore, a vertical relationship is a relationship that goes from the top down. In business terms, a vertical relationship is where one business relies upon another business in order to continue operating. These relationships are often described as "B2B," meaning business to business.
The relationship between a franchisee and franchisor varies from one business franchise setup to the next. A franchise is a right given to a person or entity to operate a business or sell goods and services under a trademarked name. In some franchises, the relationship remains strong between the franchisor (granter of rights) and the franchisee (buyer). In others, the two have little contact after the initial franchise agreement is in place.
