Resources

Glossary

Plain definitions of the words you will hear in every franchise conversation.

Right/obligation to open multiple outlets in a defined region over a schedule.

Mandatory look, service, product, and process rules set by the franchisor.

Company Owned, Company Operated outlet — run by the brand.

Geographic protection from same-brand competition — only as defined in the contract.

Franchise Owned, Company Operated — franchisee invests; brand operates.

Franchise Owned, Franchise Operated — the classic hands-on model.

Core contract granting rights and setting fees, term, obligations, and exit rules.

Initial fee for joining the system; often non-refundable.

Pool funded by franchisees for brand or co-op advertising.

Rights over a large territory, often including ability to sub-franchise.

Restriction on running a competing business during or after the term.

Ongoing fee to the franchisor, usually sales-based or fixed.

Area in which the franchisee may operate, with or without exclusivity.

Profitability math of a single outlet after all costs and fees.

Cash needed to run operations until the business generates enough inflow.

Next steps

Continue

Educational only. Full disclaimer.