Chapter 7: Select a Type of Ownership

Front

Franchise

Back

A business model that allows one to operate a business under an established brand and business system.

Front

Initial Franchise Fee

Back

The upfront fee paid to a franchisor to join a franchise system.

Front

Startup Costs

Back

Expenses incurred during the process of creating a new business.

Front

Royalty Fees

Back

Ongoing payments made by the franchisee to the franchisor, usually as a percentage of sales.

Front

Advertising Fees

Back

Fees paid by franchisees to support the franchisor’s advertising and marketing efforts.

Front

Franchise Disclosure Document

Back

A legal document that provides prospective franchisees with information about the franchisor and the franchise system.

Front

Goodwill

Back

The established reputation of a business, regarded as a quantifiable asset.

Front

Customer Loyalty

Back

The likelihood that existing customers will continue to buy from a specific business.

Front

Federal Trade Commission

Back

A U.S. government agency responsible for protecting consumers and ensuring a strong, competitive market.

Front

Sole Proprietorship

Back

A business owned and operated by one person.