A fund held by the franchisor where franchisee advertising dollars are pooled together for national and/or regional advertising.

The right to use the trademarks, know-how and business systems of the franchisor, and to promote and market products and/or services using such trademarks, know-how and systems.

The company or person who contracts with the franchisor for the right to operate the franchise in return for payment of an initial fee and/or an ongoing royalty.

A way of doing business in which the franchisor gives the franchisee the right to offer, sell or distribute goods or services identified by the franchisor's trademark.

A system of marketing and distribution in which an independent businessperson, for a fee, is granted the right to market the goods or services of the franchisor according to the established standards and practices of the franchisor.

A one-time fee paid by the franchisee to the franchisor in payment for the right to operate a franchised business

(also known as an Initial, Up-Front, or Licence Fee).

A business model that has in place policies and procedures to create consistency from one franchise location to the other.

An ongoing fee paid by the franchisee to the franchisor often calculated as a percentage of sales.