| A | B |
|---|
| advertising fees | fees paid to support television, magazine, or other advertising of the franchise as a whole |
| board of directors | group of people who meet several times a year to make important decisions affecting the company |
| business broker | a person who sells businesses for a living |
| corporation | a business with the legal rights of a person and which may be owned by many people |
| dividends | distributions of profits to shareholders by corporations |
| franchise | a legal agreement that gives an individual the right to market a company's products and services in a particular area |
| incorporate | to set up a business as a corporation |
| initial franchise fee | fee the franchise owner pays in return for the right to run the franchise |
| liability | the amounts owed to others |
| partnership | a business owned by two or more people |
| royalty fees | weekly or monthly payments made by the owner of a franchise to the seller of the franchise |
| sole proprietorship | a business owned exclusively by one person |
| start-up costs | costs associated with beginning a business |
| share of stock | a unit of ownership in a corporation |
| S corporation | corporation organized under subchapter S of the internal revenue code whose income is taxed as a partnership |
| valuator | an expert on determining the value of a business |
