| A | B |
|---|
| Advertising Fee | A fee paid by the franchisee to the franchisor advertising expenditures. |
| Approved Products | Products that a franchisee must purchase from the franchisor and approved suppliers. |
| Cash Liquidity | how quickly and cheaply an asset can be converted into cash |
| Entrepreneur | a person who organizes and runs a business |
| Exclusive Territory | The franchisor cannot sell other franchises within that territory. |
| Franchise | A business in which the owner of a product, service or method obtains distribution through affiliated dealers |
| Franchise Agreement | A written contract between the franchisor and the franchisee |
| Franchise Fee | The initial fee paid by the franchisee to the franchisor to obtain the franchise rights. |
| Franchisee | A person or entity to whom the right to conduct a business is granted by the franchisor. |
| Franchisor | A person or entity issuing or granting a franchise or license. |
| Initial Investment | The initial franchise fee and the total investment amount including working capital necessary to open a franchise. |
| Net Worth | TOTAL ASSETS – TOTAL LIABILITIES |
| Renewal | the resigning or extension of a Franchise Agreement after the initial terms of the franchise agreement expires |
| Royalty | The percentage of gross sales or some fixed fees paid to the franchisor on a periodic basis. |
| Total Investment | The total amount of money estimated for the start up of a franchise |
| Trademark | Knowledge in the possession of a company or entity that is commercially valuable, not generally known or readily ascertainable |
