A Resource of The Educated Franchisee

A Glossary of Franchise Terms

A Glossary of Franchise Terms

The  franchise terms and glossary of  has been meticulously constructed to be as accurate as possible. While some franchise terms are based on generally accepted definitions, other franchise terms may be subject to differing interpretations and uses. Franchising is an evolving and changing business format and, as such, the terminology used by its practitioners is similarly fluid. The intent of this glossary is to give the reader an introduction to some of the language used in franchising. It is not intended to be all inclusive but merely one tool to understanding this unique business format. Other useful resources include The FDD Exchange, a collection of Franchise Disclosure Documents and The Educated Franchisee, a site designed to enlighten those seeking more information on franchising.

From our friends at WIKIPEDIA: Franchising is the practice of using another firm’s successful business model. The word ‘franchise’ is of Anglo-French derivation – fromfranc – meaning free, and is used both as a noun and as a (transitive) verb. For the franchisor, the franchise is an alternative to building ‘chain stores’ to distribute goods that avoids the investments and liability of a chain. The franchisor’s success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.

We’ve endeavored to be as thorough and accurate as possible, however, as Franchising is an ever-eveolving business format, new franchising terms and terminology will undoubtably be introduced over time. If you  can’t find a clear definition to a Franchise Term in this Glossary, please Contact Us with the term and we’ll make every effort to update out Franchise Terms Glossary website.


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A Glossary of Franchise Terms

Our Glossary of Franchise Terms is available in PDF format, follow the link and download and save the file for future reference.

The FDD Exchange

Review Hundreds of FDD's Click Here to Visit Site

The Educated Franchisee

Become An Educated Consumer Click Here To Visit Site

Franchise Coach

Your Guide to the Right Franchise Click here To Visit Site