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Common FRANCHISE Terms

  • business format franchise

    This type of franchise includes not only a product,service and trademark, but also the complete method to conduct the business itself,such as the marketing plan and operations manuals

  • disclosure statement

    Also known as the BDM,or Franchise Disclosure Document, the disclosure document provides information about the franchisor and franchise system

  • BDM

    The Franchise Disclosure Document, BDM, is the format for the disclosure document which provides information about the franchisor and franchise system to the franchisee

  • franchise

    A license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support and control

  • franchise agreement

    The legal, written contract between the franchisor and franchisee which tells each party what each is supposed to do

  • franchisee

    The person or company that gets the right from the franchisor to do business under the franchisor's trademark or trade name

  • franchising

    A method of business expansion characterized by a trademark license, payment offees, and significant assistance and/or control

  • franchisor

    The person or company that grants the franchisee the right to do business under their trademark ortrade name

  • product distribution franchisee

    A franchise where the franchisee simply sells the franchisor's products without using the franchisor's method of conducting business

  • royalty

    The regular payment made by the franchisee to the franchisor, usually based on a percentage of the franchisee's gross sales

  • trademark

    The marks, brand name and logo that identify a franchisor which is licensed to the franchisee