Things have changed since 1913. A franchise is still everything the old Webster dictionary says it is, but its most common definition is now a type of
corporate structure.
Typically, a large corporation with a well-established public image (fast food restaurants are the most common example) will contract with an individual or small company to operate one of its retail outlets, or franchises.
This can be a very profitable arrangement for the corporation because the franchisee has greater autonomy, and potentially a much higher income than a regular, paid employee, and so tends to work harder and longer hours. In addition, the franchisee usually pays the corporation a substantial fee for the "privilege" of operating one of its outlets.
Franchise corporations, with their national marketing and recognized brand names, have a nasty habit of putting small, privately owned stores and restaurants out of business.