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.
Ownership of a business without active involvement in its daily operations.
A legally binding contract between the franchisor and franchisee that outlines all of the conditions, responsibilities, and important parts of the deal.
A legal document that franchisors must provide to potential franchisees which includes detailed information about the franchisor, their financials, fees, and the opportunity.
The costs and billable items that are required to start and operate a franchise business.
An individual, business, or entity that enters an agreement with a franchisor to operate a business that uses the franchisor’s brand, products, services, business model, and systems.