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
product distribution franchise franchisor's method of conducting business
a franchise where the franchisee simply sells the franchisor's products without using the
franchise
a license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support and control
franchising
a method of business expansion characterized by a trademark license, payment of fees, and significant assistance and/or control
disclosure statement
also known as the UFOC, or Uniform Franchise Offering Circular, the disclosure document provides information about the franchisor and franchise system
UFOC
the Uniform Franchise Offering Circular, UFOC, is one format for the disclosure document which provides information about the franchisor and franchise system to the prospective franchisee
trademark
the franchisor's identifying marks, brand name and logo that are licensed to the franchisee
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
franchisor
the person or company that grants the franchisee the right to do business under their trademark or trade name
royalty
the regular payment made by the franchisee to the franchisor, usually based on a percentage of the franchisee's gross sales