Here are some terms that are commonly used in the franchise business.
The attribute of a potential customer to be sold to is called a Potential Franchisee, and leads in marketing activities fall under this category.
This is the inflow channel for prospective customers = prospective franchisees = leads. These include inbound sales via trade shows/trade shows, websites, and advertising, and outbound sales via calls and faxes from purchased corporate lists.
Business guide with expertise in the franchising industry who provides advice on topics such as franchising operations, companies and relationships.
It refers to an inside sales person who responds to the contacts acquired through marketing activities, and some organizations position it as synonymous with an appointee for obtaining appointments.
It refers to the sales force and includes activities other than door-to-door sales, such as being a speaker at discovery day and seminars, and manning a booth at exhibitions and trade fairs. Depending on the organization, they may also be involved in store development. Since they are in charge of orders = contracts, they may also be in charge of following up with the owners after the opening.
Franchise Disclosure Document
A document that explains important information before signing a franchise agreement is generally called this. In some countries/regions, the Franchise Law requires notification to a designated agency.
A specific area in which the franchisee has been given the right to conduct or solicit business within by the franchisor.
There are various agreement types, with different obligations and rights for the contractor, depending on the franchisee's business plan etc.
Form of identification, such as a brand name or logo, legally associated with the franchise. Trademarks are protected by law and are distinguished by the symbol.
A franchise agreement that is concluded on a store (branch) basis. Sometimes referred to as a direct franchise or single unit.
This is a type of contract in which the company has the right to develop potential franchisees in a certain area without directly opening the stores itself.
This type of contract, sometimes called an area franchise, grants exclusive rights to open stores in a certain area. The franchisor and the franchisee commit to a business plan for the number of years and the number of stores to be opened.
This is a form of contract that gives you the right to open your own stores or develop sub-franchises as a franchisor in a certain area.
In this method, the sales proceeds are once credited to the franchisor, and the actual costs of purchases, royalties, etc. are deducted before being refunded to the owner.
Prevention of competition
This is a contractual clause that restricts you from conducting similar business after the contract ends.
This is the right fee, also known as the unit fee, and is basically non-refundable even if you terminate the contract.
This is a measure that allows the franchisor to reduce the risk of accounts receivable associated with the purchase and sale of goods, as the operation will be procuring various goods from the franchisor or an entity designated by the franchisor.
This is the price you pay for acquiring the know-how. Some franchisors include these fees in the franchise fee.
These fees are paid as compensation for continuous use of the trademark and management guidance. There are various types of fees, including variable fees based on sales and gross profit, and fixed fees regardless of sales.
In some cases, the franchisee is responsible for a portion of the franchisor's marketing costs, which may be called a marketing fee or a brand building fund.
System Usage Fee
In addition to royalties, there are cases where the franchisor collects monthly fees for the use of systems and other services developed or mediated by the franchisor.