Glossary
Franchising Terminology - Simplified.
There is a lot to learn in the world of franchising. From systems and laws to terminology and jargon. Using this glossary, we aim to make at least one of those easier for you. This page contains a comprehensive list of all of the must-know phrases, acronyms, terms, and more that you need to navigate the franchise industry with confidence.
The franchise owner does not actively engage in day-to-day operations, and has minimal involvement in scaling the business.
The franchise owner hires a manager to oversee all facets of day-to-day operations and lead/manage all staff. The franchise owner will…
If the lights are on, doors are open, the franchise owner is working full-time within the business.
A company-owned unit refers to a business outlet within a franchise system that is owned and managed directly by the franchising company itself; therefore…
Typically found in multi-unit/multi-territory franchise agreements. The Development Schedule states the timing when each unit/territory…
A legally binding contract between the franchisor and franchisee that outlines all of the conditions, responsibilities, and important parts of the deal.