Tooltips Archive - Page 20 of 32 - The Franchise Trainer
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December 21, 2019
Franchise Support Package

A package of services including such items as advertising and marketing materials, training, equipment, stationery, and signage etc., supplied by the franchisor to the franchisee, to establish and operate the business within a specified geographical territory.

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December 21, 2019
Franchise Revenue Sources

Multiple income streams which can be earned by the franchisor through a set of fees to be paid by the franchisees including initial franchise fees, royalties, marketing contribution, rebates, or administrative fees for the supply of proprietary products and services. These fees are meant to cover the cost of granting the franchise and supporting franchisees […]

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December 21, 2019
Franchise Prospectus

A franchise promotional brochure/folder which includes information to help the prospective franchisee to understand the franchisor’s business concept and franchise model, and obtain facts about the investment levels, benefits to franchisees, business unique selling points, training & support, initial & ongoing fee structure and steps for obtaining the franchise.

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December 21, 2019
Franchise Model

The granting or licensing of certain defined intellectual property rights and access to certain tangible and intangible benefits in return for specific payments on a regular basis.

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December 21, 2019
Franchise Marketing

The process by which a franchisor promotes its franchise opportunity to prospective franchisees by using a mix of print and online marketing tools in addition to exhibiting at franchise shows.

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December 21, 2019
Franchise Market Value

The estimated amount of upfront franchise fees to be paid by the country/area developer or master franchisee to the franchisor based on the number of units to be developed in the franchised territory over an agreed period.

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December 21, 2019
Franchise in Box™

Or alternatively used as “Plug & Play” are terms coined by Sary Hamway for an initiative to encourage companies to  build a franchise system to support small businesses and young entrepreneurs by creating and granting a low-investment, turn-key, smaller model of their retail units using their infra-structure to provide all-inclusive support to franchisees.

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December 21, 2019
Franchise Format

Types of franchises that can be categorized according to various parameters such as nature of business, operational structure, franchisor’s expansion strategy, level of involvement and control systems by the franchisor, investment level, marketing, and franchisor/franchise relationship patterns.

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December 21, 2019
Franchise Fee

An initial fee paid by the franchisee to the franchisor for the right to use trademarks and provision of the franchise support package and associated rights.

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December 21, 2019
Franchise Earnings Claims

Information provided by the franchisor under section 19 of the FDD “Financial Performance Representation” regarding the past or projected financial performance to allow prospective franchisee to predict the earnings or revenue that can be generated from the franchise business. It is worth noting that sharing such information via other means than section 19 disclosure is […]

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