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Franchise Glossary

If you are thinking about taking the journey into franchising you should know all the common franchise terms. Learn all you need to know about franchising with our franchise glossary.

Acknowledgement of Receipt

Advertising Co-op
Definition of an Advertising Co-op in franchising.

Advertising (Marketing) Fee
Definition of an Advertising (Marketing) Fee in franchising

Angel Investor
Definition of an Angel Investor in franchising

Approved Advertising Materials
Definition of Approved Advertising Materials in franchising

Approved for Expansion
Definition of what Approved for Expansion means in franchising

Approved Products and Services
Definition of Approved Products and Services in franchising

Approved Site
Definition of an Approved Site in franchising

Arbitration
Definition of Arbitration in franchising

Area Franchise (multi-unit)
Definition of an Area Franchise (multi-unit) in franchising

Authorized/Designated Supplier
Definition of an Authorized/Designated Supplier in franchising

Brand (Advertising) Fund
Definition of a Brand (Advertising) Fund in franchising

Business Format Franchising (BFF)
Definition of Business Format Franchising (BFF)

Business Plan
Definition of a Business Plan in franchising

Capital Required
Definition of Capital Required in franchising

Certification
Definition of Certification in franchising

Churning
Definition of Churning in franchising

Common Franchising Terms
A glossary of generally accepted terms commonly used in franchising. These definitions are not meant as legal definitions, but rather a consumer guide.

Company-Owned Location
Definition of a Company-Owned Location in franchising

Continuous Training
Definition of Continuous Training in franchising

Conversion Franchising
Definition of Conversion Franchising

Copyright
Definition of Copyright in franchising

Culture of Compliance
Definition of a Culture of Compliance in franchising

Customer Information
Definition of Customer Information in franchising

Days
Definition of Days in franchising

Day-to-Day Management
Definition of Day-to-Day Management in franchising

Default
Definition of Default in franchising

Design
Definition of Design in franchising

Designated Supplier
Definition of a Designated Supplier in franchising

Disclosure Document
Definition of Disclosure Document in franchising

Discovery Day
Definition of a Discovery Day in franchising

Distributorships
Definition of Distributorships in franchising

Earnings Claims
Definition of Earnings Claims in franchising

Entrepreneur
Definition of an Entrepreneur in franchising

Exclusive or Protected Territory
Definition of an Exclusive or Protected Territory in franchising

Facility
Definition of a Facility in franchising

Feasibility Study (Threshold Analysis)
Definition of a Feasibility Study (Threshold Analysis) in franchising

Federal Trade Commission (FTC)
Definition of the Federal Trade Commission (FTC) as the agency relates to franchising

Field Representative
Definition of a Field Representative in franchising

Financial Performance Representation (FPR)
Definition of a Financial Performance Representation (FPR) in franchising

Footprint
Definition of a Footprint in franchising

Franchise
Definition of a Franchise

Franchise Agreement
Definition of a Franchise Agreement

Franchise Attorney
Definition of a Franchise Attorney

Franchise Broker
Definition of a Franchise Broker

Franchise Consultant
Definition of a Franchise Consultant

Franchise Disclosure Document (FDD)
Definition of a Franchise Disclosure Document (FDD)

Franchise Fee
Definition of a Franchise Fee

Franchisee
Definition of a Franchisee

Franchisee Advisory Council (FAC)
Definition of a Franchisee Advisory Council (FAC)

Franchisee Association (FA)
Definition of a Franchisee Association (FA)

Franchisee in Good Standing
Definition of a Franchisee in Good Standing

Franchising
Definition of Franchising

Franchisor
Definition of a Franchisor

Franchisor Information
Definition of Franchisor Information

FTC Rule
Definition of the FTC Rule regulating franchising at the federal level in the United States

Grey Marketing
Definition of Grey Marketing in franchising

Gross Sales
Definition of Gross Sales in franchising

Initial Investment
Definition of Initial Investment in franchising

Internet Sales
Definition of Internet Sales in franchising

Inquiry
Definition of an Inquiry in franchising

International Franchise Association (IFA)
Definition of the International Franchise Association (IFA)

Key Supplier or Vendor
Definition of a Key Supplier or Vendor in franchising

Lead
Definition of a Lead in franchising

Liquid Capital
Definition of Liquid Capital in franchising

Location
Definition of a Location in franchising

Manuals
Definition of Manuals in franchising

Market Introduction Program
Definition of a Market Introduction Program in franchising

Master Franchise
Definition of a Master Franchise

Multi-Unit Developer (Multi-Unit Franchisee)
Definition of a Multi-Unit Developer or Multi-Unit Franchisee

Net Worth
Definition of Net Worth in franchising

Non-Compete Clause
Definition of a Non-Compete Clause in franchising

Operating Principal
Definition of an Operating Principal in franchising

Personal Guaranty
Definition of Personal Guaranty in franchising

Private Label
Definition of Private Label in franchising

Product and Trade Name Franchising (Traditional Franchising)
Definition of Product and Trade Name Franchising (Traditional Franchising)

Pro Forma Financial Statement
Definition of Pro Forma Financial Statement in franchising

Prospect
Definition of a Prospect in franchising

Protected or Exclusive Territory
Definition of Protected or Exclusive Territory in franchising

Quality (Brand) Standards
Definition of Quality (Brand) Standards in franchising

Registration
Definition of Registration in franchising

Renewal Agreement
Definition of a Renewal Agreement in franchising

Retrofranchising or Refranchising
Definition of Retrofranchising or Refranchising

Right of First Refusal
Definition of the Right of First Refusal in franchising

Royalty Fee
Definition of a Royalty Fee in franchising

Service Mark
Definition of a Service Mark in franchising

Single-Unit Franchisee
Definition of a Single-Unit Franchisee

Start-Up Costs (Initial Investment)
Definition of Start-Up Costs (Initial Investment) in franchising

Success
Definition of Success in franchising

Successor Agreement
Definition of a Successor Agreement in franchising

System Brand Fund
Definition of a System Brand Fund in franchising

Trademark
Definition of Trademark as used in franchising

Turnkey
Definition of Turnkey as used in franchising

Uniform Franchise Offering Circular (UFOC)
Definition of a Uniform Franchise Offering Circular (UFOC)

Validation
Definition of Validation as used in franchising

Vicarious Liability
Definition of Vicarious Liability as used in franchising

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