Plain-English franchise glossary
Use this quick reference to keep commercial language from obscuring the underlying obligation.
- Franchisee
- The person or company granted the right to operate the franchised business.
- Franchisor
- The owner of the franchise system and brand rights.
- Initial fee
- The entry payment, which may cover licence, training and setup support.
- Royalty
- An ongoing fee, often based on revenue or charged as a fixed amount.
- Marketing levy
- A contribution toward shared brand or marketing activity.
- Territory
- The geographic or customer area associated with the franchise rights.
- Working capital
- Funds used to operate while receipts and costs do not yet align.
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