Franchise Glossary / Dictionary of Business Opportunities

Franchise definition
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Franchising Terms / Service Opportunity

Acknowledgement Of Receipt definition
Acknowledgement Of Receipt definition, Acknowledgement of receipt which is the last page of an Offering Circular indicates the receipt of the documents on a certain date.This when signed and returned acts as a proof of the date one received the documents. - Frachise terms / Learn about Franchising Opportunities

Advertising Fee definition
Advertising Fee definition, Advertising Fee is the annual fee that is paid by the franchisee to the franchisor as his share of the corporate advertising expenditures. This advertising fee is charged by few franchisors only. - Frachise terms / Learn about Franchising Opportunities

Agent definition
Agent definition, An agent is an individual appointed who can act on behalf of the person or entity.The corporation is legally bound by the actions of the agent. - Frachise terms / Learn about Franchising Opportunities

Agreement definition
Agreement definition, Agreement is the "contract" that signifies a franchise. - Frachise terms / Learn about Franchising Opportunities

Approved Products definition
Approved Products definition, Approved Products are those products which a franchisee must buy from the franchisor.It also includes products which must be bought from approved suppliers.This is done by the franchisor in order to maintain quality across all franchisees. - Frachise terms / Learn about Franchising Opportunities

Arbitration definition
Arbitration definition, Arbitration is a way of resolving disputes by referring it to a third party which is selected by the parties. - Frachise terms / Learn about Franchising Opportunities

Area Development Rights definition
Area Development Rights definition, Area Development Rights are the rights alloted to a franchisee to operate a number of franchises within a specified geographic area. - Frachise terms / Learn about Franchising Opportunities

Area Franchise definition
Area Franchise definition, Area Franchise is a franchise licensed to develop a particular area.This Area Franchisee sometimes includes performance targets and schedules.It can also include franchise sales rights. - Frachise terms / Learn about Franchising Opportunities

Assignment Fees definition
Assignment Fees definition, Assignment Fees is the monthly fees paid by the franchisee to the franchise company for expenses incurred by the company like corporate marketing and advertising. - Frachise terms / Learn about Franchising Opportunities

Broker definition
Broker definition, A broker is a intermediary between the buyer and the seller. He can represent either the buyer or the seller, and in some cases even both the parties. - Frachise terms / Learn about Franchising Opportunities

Business Format Franchise definition
"Business Format Franchise definition, In Business Format Franchise the franchisor gives the permission to the franchisee for use of product, service and trademark. The entire business format is also taught to the franchisee including marketing, selling, inventory, accounting and personnel pro

Buy Sell Agreement definition
Buy Sell Agreement definition, A buy sell agreement states the legal provisions under which a business can be sold. - Frachise terms / Learn about Franchising Opportunities

Capital Required definition
Capital Required definition, Capital Required is the amount of cash one is required to have available. - Frachise terms / Learn about Franchising Opportunities

Company Owned Outlet definition
Company Owned Outlet definition, Company-owned stores or offices that in appearance are identical to the franchised outlets are also established by certain franchisors. - Frachise terms / Learn about Franchising Opportunities

Conversion Franchise definition
Conversion Franchise definition, Conversion Franchise is a franchise system permitting existing businesses to join a national franchise system to be able to use its name, trademark and operating system. - Frachise terms / Learn about Franchising Opportunities

Copyright definition
Copyright definition, Copyright is the exclusive right of reproduction and sale of any literary or artistic work.Copyright is granted by law for a specific number of years. - Frachise terms / Learn about Franchising Opportunities

Default definition
Default definition, Default is the failure to perform as was agreed upon by the parties. - Frachise terms / Learn about Franchising Opportunities

Designated Supplier definition
Designated Supplier definition, Designated Supplier or suppliers are the suppliers approved by the franchisor in order to maintain a standard. - Frachise terms / Learn about Franchising Opportunities

Disclosure definition
Disclosure definition, Disclosure refers to revealing facts to others. In a franchise these facts may be complimentary to the franchisor, such as disclosing a prior bankruptcy or litigation. - Frachise terms / Learn about Franchising Opportunities

Disclosure Document definition
"Disclosure Document definition, A Disclosure document is an "Offering

Distributorship definition
Distributorship definition, Distributorship is the right granted by a manufacturer or a wholesaler for distribution or sale of products. Distributorship does not generally qualify as a franchisee. However certain franchisees can qualify as a distributorship. - Frachise terms / Learn about Franchising Opportunities

Earnings Claims definition
Earnings Claims definition, Earning Claims are assertions made by franchise companies of specific acquired sales levels or profitability levels. - Frachise terms / Learn about Franchising Opportunities

Entrepreneur definition
Entrepreneur definition, An entrepreneur is the person who assumes the responsibility for organizing and operating the business. He also assumes the risk including the financial risk for a business venture. - Frachise terms / Learn about Franchising Opportunities

Exclusive Territory definition
Exclusive Territory definition, Exclusive territory gives the right of the territory to the franchisee preventing the franchisor from appointing any other franchisee for the territory or carrying on business himself in the territory. - Frachise terms / Learn about Franchising Opportunities

Federal Trade Commission FTC definition
Federal Trade Commission FTC definition, FTC is the U.S. government agency that regulates franchising. It is based in Washington, D.C., and regulates a variety of trade practices. - Frachise terms / Learn about Franchising Opportunities

Frachise Business Plan definition
Frachise Business Plan definition, A business plan is a strategic plan that lays down the company's objectives and the specific steps that need to be taken to achieve those objectives. The Business Plan is usually prepared by company management. - Frachise terms / Learn about Franchising Opportunities

Franchice Renewal definition
Franchice Renewal definition, Renewal refers to the signing of a new franchisee agreement upon the expiration of the existing one. - Frachise terms / Learn about Franchising Opportunities

Franchise definition
"Franchise definition, Franchise is a permission given by a person or entity permitting the distribution of goods or services under his trademark, service mark or tradename by an agreement to another person or entity.During this period the grantor retains control over the fran

Franchise Agreement definition
"Franchise Agreement definition, Franchise Agreement sets the nature of the business explaining the expectations of the franchisor. It includes information about territorial rights of the franchisee, location requirements, training schedule, fees, general obligations of the franchisee, g

Franchisee definition
Franchisee definition, Franchisee is the person or the entity which has acquired the rights of conducting the business from the franchisor or licencor. - Frachise terms / Learn about Franchising Opportunities

Franchise Feasibility Studies definition
Franchise Feasibility Studies definition, Franchise feasibility study is conducted to determine the degree to which a company can become a successful franchisor. - Frachise terms / Learn about Franchising Opportunities

Franchise Fee definition
Franchise Fee definition, Franchise Fee is the fee paid by the franchisee to the franchisor initially to acquire the franchise. - Frachise terms / Learn about Franchising Opportunities

Franchise Registration definition
Franchise Registration definition, In several states specific information needs to be submitted and approved before a franchise is granted. This contains more information than the Disclosure. - Frachise terms / Learn about Franchising Opportunities

Franchise Venture Capital definition
Franchise Venture Capital definition, Venture Capital is the money invested in new businesses which show chances of above average growth. - Frachise terms / Learn about Franchising Opportunities

Franchising definition
Franchising definition, Franchising is a mode of doing business where two parties are involved, the franchisor and the franchisee and the contract binding them is franchise. - Frachise terms / Learn about Franchising Opportunities

Franchisor definition
Franchisor definition, The entity or person owning the rights or license of the business. Franchisor is the person who grants the license or permission to the various franchisees. - Frachise terms / Learn about Franchising Opportunities

Ftc Rule 436 definition
Ftc Rule 436 definition, FTC Rule 36 was passed in 1979,to regulate the franchise industry by setting forth "disclosure" requirements and prohibiting franchisors from making earnings claims. - Frachise terms / Learn about Franchising Opportunities

Furniture Fixtures and Equipment FFE definition
Furniture Fixtures and Equipment FFE definition, Furniture, Fixtures, and Equipment is the movable property used in the business. - Frachise terms / Learn about Franchising Opportunities

Gross Sales definition
Gross Sales definition, Gross Sales is the total of all sales for any period of time before any deductions. - Frachise terms / Learn about Franchising Opportunities

Housemark definition
"Housemark definition, Housemark is a trademark which is used to identify the operations of an organisation. This may in certain cases also be the company name. This trademark is used to identify one or more products and at times is used in combination with other trademarks or

Identify Items definition
"Identify Items definition, Identify Items are the items that can be identified with the franchisor as they display the registered trademarks of the franchisor. Items such as paper products, uniforms, point of sale materials or exterior signs are usually the identify items used in a

Industry definition
Industry definition, The category of business that a franchise belongs to. It is an all-encompassing area of business that can incorporate several different sectors. - Frachise terms / Learn about Franchising Opportunities

Initial Investment definition
Initial Investment definition, Initial Investment is the investment incurred by a franchisee at the beginning of a franchise. It includes start up expenses, franchise fees and other such expenses. - Frachise terms / Learn about Franchising Opportunities

Initial Ongoing Training definition
Initial Ongoing Training definition, This is the training and the support that a franchisor gives to the franchisee for the running of the franchise according to the standards set by the franchisor. - Frachise terms / Learn about Franchising Opportunities

International Franchise Association IFA definition
International Franchise Association IFA definition, International Franchise Association, based in Washington, D.C is a trade association for franchisors. - Frachise terms / Learn about Franchising Opportunities

Liquid Capital definition
Liquid Capital definition, Cash or assets which can be readily converted into cash. Liquid Capital is also known as liquid assets, quick assets, and realizable assets. - Frachise terms / Learn about Franchising Opportunities

Marketing Plan definition
"Marketing Plan definition, Marketing Plan is the detailed plan setting the marketing activities of the organisation. In a franchise marketing plan is the technique using which franchises are sold. It includes all the relevant details like the number of sales anticipated within a se

Master Franchisee definition
Master Franchisee definition, Master Franchise is an individual or a company which owns the exclusive rights to develop a particular continent. - Frachise terms / Learn about Franchising Opportunities

Master Region definition
Master Region definition, The territory under a master franchisee. Normally the franchisee subdivides it and resells individual franchisee locations. - Frachise terms / Learn about Franchising Opportunities

National Alliance Of Franchisees NAF definition
National Alliance Of Franchisees NAF definition, NAF having its national headquarters in Washington, DC. is a national coalition which was organized in 1977 to represent and protect the interests and rights of franchisees. - Frachise terms / Learn about Franchising Opportunities

Net Worth definition
Net Worth definition, The Net worth of an orginastion is its total assets minus the liabilities. - Frachise terms / Learn about Franchising Opportunities

Non Compete Clause definition
Non Compete Clause definition, The franchisor cannot compete with the franchised company upon termination, non-renewal, or other sale or transfer. - Frachise terms / Learn about Franchising Opportunities

Offer definition
Offer definition, An offer is a proposal to sell a franchise.It can be either written or oral. - Frachise terms / Learn about Franchising Opportunities

Offering Circular definition
"Offering Circular definition, The Offering Circular provides background information from over 20 different categories. It also contains a copy of the proposed franchise agreement. The Offering Circular is also known as Disclosure Document and Uniform Franchise Offering Circular (UFOC)

Operations Manual definition
Operations Manual definition, The Operations Manual covers all the aspects of the business and consists of guidelines for the franchisee on how to operate the franchised business. - Frachise terms / Learn about Franchising Opportunities

Product Format Franchise definition
Product Format Franchise definition, Product Format Franchise is one where the franchised product or service does not constitute the majority of the products or services on offer by the franchisee. - Frachise terms / Learn about Franchising Opportunities

Pro Forma definition
Pro Forma definition, Pro forma statements are statements issued by the franchisor to the franchisee based on actual operating results of the franchisor's units or franchise establishments. It can be in the form of any statement which measures profits and expenses. - Frachise terms / Learn about Franchising Opportunities

Protected Territory definition
Protected Territory definition, Protected Territory is the territory allotted to a franchisee where the franchisor has promised not to franchise to another franchisee or open a company owned business. - Frachise terms / Learn about Franchising Opportunities

Public Figure Involvement definition
Public Figure Involvement definition, When a Public Figure is endorsing a franchised product then the nature of the agreement between the public figure and the franchisor must be disclosed - Frachise terms / Learn about Franchising Opportunities

Qualification Questionnaire definition
"Qualification Questionnaire definition, Qualification Questionnaire is a document prepared by the franchisor to seek information from a prospective franchise. A Qualification Questionnaire provides initial information to the franchisor and assists him in determining whether or not the prospect

Quality Control definition
Quality Control definition, Quality Control is the method used by the franchisor to enforce the rules set in the operating manuals. Quality control involves regional coordinators visiting each franchisee. - Frachise terms / Learn about Franchising Opportunities

Royalty definition
Royalty definition, The franchisee is required to pay to the franchisor a percentage of the gross sales on monthly basis. This is referred to as Royalty. - Frachise terms / Learn about Franchising Opportunities

Sector definition
Sector definition, Sector refers to the categories included within a broader scope of franchise opportunities. It is also known as the Industry. - Frachise terms / Learn about Franchising Opportunities

Slick definition
Slick definition, Slick is a pre-prepared piece of advertising material which the franchisor gives to the franchisee for use in local print media. It can be used without any significant additional cost to franchisees for composition or makeup. - Frachise terms / Learn about Franchising Opportunities

Start Up Costs definition
Start Up Costs definition, Start up costs is the investment required to be made by the franchisee at tha start of the franchise. - Frachise terms / Learn about Franchising Opportunities

Total Investment definition
Total Investment definition, Total Investment consists of initial investment, the working capital, and subsequent additions to inventory and equipment which will be necessary for a fully operational and profitable enterprise. - Frachise terms / Learn about Franchising Opportunities

Trade Secret definition
Trade Secret definition, Trade Secrets of the franchisor is revealed to the franchisee by the franchise transaction. These are knowledge centric to the operation of the business. Appropriate legal provisions are in the franchise agreement to protect these trade secrets. - Frachise terms / Learn about Franchising Opportunities

Turnkey definition
Turnkey definition, The franchisor is expected to provide the platform to run the business to the franchisee, even without any input from the franchisee. - Frachise terms / Learn about Franchising Opportunities

Tying definition
Tying definition, Tying means selling of a product as a franchise together in combination with another product. This is illegal unless the second product is equal to or better than the first product. - Frachise terms / Learn about Franchising Opportunities

Uniform Franchise Offering Circular UFOC definition
"Uniform Franchise Offering Circular UFOC definition, The Uniform Franchise Offering Circular (UFOC) provides background information from over 20 different categories. It also contains a copy of the proposed franchise agreement. The Uniform Franchise Offering Circular is also known as Disclosure Document an

Variable Cost definition
Variable Cost definition, Costs which vary with the level of Production are known as Variable Costs. - Frachise terms / Learn about Franchising Opportunities

Vertical And Horizontal Competition definition
Vertical And Horizontal Competition definition, Horizontal competitors are those competitors who offer a franchise or franchise product for the same price, whereas vertical competitors are those who offer the same product but for a different price. - Frachise terms / Learn about Franchising Opportunities

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Franchises / Business Opportunities



Franchisors are available in every industry / sector to work with entrepreneurs (the Franchisee) to help them develop successful business opportunities (franchises). The franchisor typically provides marketing, sales assistance and lends corporate credibility.

Franchising options / services (For Franchisors): Franchisors must furnish potential franchisees with written disclosures providing important information about the franchisor, the franchised business and the franchise relationship, and give them at least ten business days to review it before investing.
Franchising Rule is designed to enable potential franchisees to protect themselves before investing by providing them with information essential to an assessment of the potential risks and benefits, to meaningful comparisons with other investments, and to further investigation of the franchise opportunity.

Franchise Glossary - Definitions for Entrepreneurs of Business Opportunities / Franchising - 2004-2005 HJ Ventures International, Inc.