Franchise – The right or license granted to an individual or group to market
a company’s goods or services in a particular territory
Franchisee – The owner of a single or multiply units
Franchisor – The one who grants a franchise
Territory – An assigned geographic area in which a franchisee will operate
Start up cost – Initial costs that are needed to get your franchise operating
FDD – Franchise Disclosure Document
Operating costs – On going, regular costs of operating your franchise
Franchise Fee – An initial cost that gives you the right to operate a business
of the Franchisor and access to all of the Franchisor’s systems
Discovery Day – A day spent with the Franchisor to see how the franchise
is run. This is one of the last steps before you purchase a franchise
Franchise agreement – The legal document signed between franchisor and franchisee
Royalty Fee – The Franchisor’s share of the customer’s money generated by
each Franchisee using the Franchisor’s systems. This is usually based on gross sales.
Paid monthly.
Advertising & Marketing Fee – Used to build Brand presence to benefit all
members. Usually a portion of gross sales. Paid monthly.
If you would like to learn more about the franchising process including finding the right franchise, checking availability in your area, investment requirements, franchise fee, etc… Please contact TC Franchise Specialists & Tull Consulting at 248-569-2539
