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Franchise Glossary

Franchise Direct franchise glossary is a comprehensive alphabetical list of all terms relevant to franchising and business operations, with detailed information given on each term within the glossary. Start researching the franchise industry by firstly defining key terms associated with franchising.

Trademark

August 20, 2007 / FRANCHISE ARTICLE Franchise Glossary
A franchise trademark is a form of identification such as a brand name or logo, which is associated with the franchise. Read more.

Supplier

August 20, 2007 / FRANCHISE ARTICLE Franchise Glossary
A supplier is the authorized individual or company who has been approved by the franchisor, to supply products or services to the franchisee. Read more.

Royalty Fee

August 20, 2007 / FRANCHISE ARTICLE Franchise Glossary
Also referred to as the “management service fee”, these fees are the continuous payments the franchisee gives the franchisor to stay part of the franchise system. Read more.

Pro Forma

August 20, 2007 / FRANCHISE ARTICLE Franchise Glossary
The Pro forma document is a description of financial statements which rely on historical data to assume levels of revenue, expenditure, assets, liabilities, and net worth. Read more.

Operations Manual

August 20, 2007 / FRANCHISE ARTICLE Franchise Glossary
The manual contains instructions advising a franchisee how to operate the franchise. Read more.

Multi-unit franchisee

August 20, 2007 / FRANCHISE ARTICLE Franchise Glossary
A multi-unit franchisee is one that owns and operates more than one unit of the franchise, but does not have the rights to a defined territory. Read more.

Master Franchisee

August 20, 2007 / FRANCHISE ARTICLE Franchise Glossary
A Master franchisee is the individual who negotiates the franchise rights for a defined territory (usually a country), and assumes the rights and obligations of the franchisor in that particular territory. Read more.

Initial Investment

August 20, 2007 / FRANCHISE ARTICLE Franchise Glossary
The total investment is the capital required to start the franchised business. Read more.

Initial Franchise Fee

August 20, 2007 / FRANCHISE ARTICLE Franchise Glossary
The initial fee is a once off lump sum, paid by the franchisee to the franchisor, upon signing the franchise agreement. Read more.

Franchise Unit

August 20, 2007 / FRANCHISE ARTICLE Franchise Glossary
A franchise unit refers to each individual outlet, whether company owned or franchised. Read more.
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