Franchise & business advising services

Definitions surrounding franchising

Franchise – The right or license granted to an individual or group to market a company’s goods or services in a particular territory

Franchisee – The owner of a single or multiply units

Franchisor – The one who grants a franchise

Territory – An assigned geographic area in which a franchisee will operate

Start up cost – Initial costs that are needed to get your franchise operating

FDD – Franchise Disclosure Document

Operating costs – On going, regular costs of operating your franchise

Franchise Fee – An initial cost that gives you the right to operate a business of the Franchisor and access to all of the Franchisor’s systems

Discovery Day – A day spent with the Franchisor to see how the franchise is run. This is one of the last steps before you purchase a franchise

Franchise agreement – The legal document signed between franchisor and franchisee

Royalty Fee – The Franchisor’s share of the customer’s money generated by each Franchisee using the Franchisor’s systems. This is usually based on gross sales. Paid monthly.

Advertising & Marketing Fee – Used to build Brand presence to benefit all members. Usually a portion of gross sales. Paid monthly.