Franchise language


FRANCHISE 101

Before you investigate the benefits to opening your own franchise, it helps to know the terminology. We put together this cheat sheet of the most common—and most important—words you’ll need to understand.

FRANCHISEE: An individual who purchases the right to operate a business under the franchisor’s name and system.

FRANCHISOR: The parent company that allows individuals to start and run a business using its trademarks, products and processes, usually for a fee.

FRANCHISE DISCLOSURE DOCUMENT (FDD): All franchisors are required by the U.S. Federal Trade Commission to provide this legal document to prospective franchisees. FDDs are updated annually and consist of 23 items that explain the company history, the fees and costs, contractual obligations, unit data and more. Don’t make a move without reviewing it.

FRANCHISE FEE: The initial fee one pays to a franchisor to become a franchisee, outlined in Item 5 of the FDD. For some franchises, this is a flat, one-size-fits-all fee; for others, it varies based on territory size, experience or other factors. Many franchisors offer franchise fee discounts for veterans, minorities or existing franchisees.

STARTUP COST/INITIAL INVESTMENT: The total amount required to open the franchise, outlined in Item 7 of the FDD (includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses and working capital).

ROYALTY FEE: Most franchisors require franchisees to pay a fee on a regular basis (weekly, monthly or yearly). This is usually a percentage of sales; sometimes it’s a flat fee. Some franchisors also require a separate royalty fee to cover advertising costs.

FRANCHISE AGREEMENT: The written contract, usually included in the FDD, which outlines the responsibilities of both the franchisor and the franchisee.

TERM OF AGREEMENT: This spells out the length of time that your franchise agreement is valid—usually anywhere from five to 20 years. At the end of your term, if you are a franchisee in good standing, most franchisors will allow you to renew your agreement for a percentage of the then-current franchise fee.

COMPANY-OWNED UNITS: These are locations that are owned and run by the parent company (the franchisor), rather than by franchisees.

CONVERSION: Some franchisors offer entrepreneurs the opportunity to convert their existing independent business to a franchise.

REGISTRATION STATES: Fifteen states require franchisors to register their FDDs with a state agency before they are legally allowed to sell franchises within that state. Find a list at FTC.gov.

IN-HOUSE FINANCING: Financing offered by the franchisor to franchisees to help with expenses, which can include the initial franchise fee, startup costs, equipment and inventory as well as day-to-day expenses such as payroll.

THIRD-PARTY FINANCING: Financing provided by a source other than the franchisor. Many franchisors have relationships with banks or are registered with the SBA in order to expedite the loan process for their franchisees.

ABSENTEE OWNERSHIP: An option offered by some franchisors that allows a person to own a franchise without being actively involved in its day-to-day operations.

MASTER FRANCHISE: A master franchise serves as a sub-franchisor for a certain territory. Master franchisees can issue FDDs, sign up new franchisees, provide logistical support and receive a cut of the territory’s royalties.

AREA DEVELOPER: An area developer agrees to open a certain number of units within a large territory within a specified time period. They may open and operate the units themselves or recruit other franchisees to open them.

—TRACY STAPP HEROLD

hTC is back with a bashing smartphone hTC M8


Originally posted on Ultimate GADGET Lovers:

HTC-M8-Smartphone

hTC made a re-entry in the world of smartphones and this time it’s bigger two with a new concept of a dual camera. But a predecessor that failed to turn warm reception into good sales is adding more weight on its shoulders.
The good looks of the HTC One (M8) are backed by the most powerful hardware available on the market today, while the screen has grown at the expense of the capacitive keys thus keeping the body size in check. The software has received a boost too – the new HTC One runs the latest Android version, dressed in a brand new edition of Sense UI.

The front of smartphone is dominated by a 5 inches full HD (1920X1080) Super LCD3 capacitive touchscreen with a pixel density of 441ppi. For the protection of this part, it is equipped with corning gorilla glass 3.
If we talk about the memory…

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Introducing the amazing, HTC One M8


Originally posted on GOOS3D:

2014-03-31 12.22.12

HTC One M8

I have finally gotten my hands on the HTC One (M8), though it was for far too brief a spell. I wasn’t too upset at how far away my upgrade was until today. This phone is a world beater.

Straight away the 8-bit dot case is an innovative and eye catching approach to the humble phone case. While the interactive phone case is not an entirely new idea, with the S-View case being Samsung’s attempt, the Dot View Case is simply magnificent looking. A tap on the case brings up the time and either message notifications, seen below.

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Dot View case displaying a message notification

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Dot View case displaying weather updates

The M8’s predecessor, the One, had a phenomenal build quality, and this is only improved upon with the new handset. The slightly bigger screen (5.0 inches as opposed to 4.7 inches) doesn’t make the handset noticeably…

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Top Power packed news, tools, videos and resources this week


Originally posted on Life passions:

Top Power packed news, tools, videos and resources this week

Each day is riddled with queries, doubts, surprises, shocks, fear, joy and so many more things that make up the 24 hours. Here are few links that inspite of the rigid routine, really made me pause and read or go through them during this week:

CONTENTS:

1. The riddle of experience vs. memory - Daniel Kahneman

2. Brainswarming: A Better Way to Generate Ideas - by Tony McCaffrey

3.  The Daily Routines of Geniuses - by Sarah Green

4. YOUR MONEY More: The Motley Fool Personal  - Finance: One-Sentence Financial Rules

5. How Fast Do You Read? Simple quiz by The WALL STREET JOURNAL

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1. The riddle of experience vs. memory - Daniel Kahneman:

The riddle of experience vs. memory Daniel Kahneman TED talks

TED Daniel Kahneman

Everybody talks about happiness these days. I had somebody count the number of books with “happiness” in the title published in the last five years and they gave up after about 40, and…

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Self-Promotion for Professionals from Countries Where Bragging Is Bad


Originally posted on HBR Blog Network - Harvard Business Review:

In India, it’s crabs in a bucket — the one who tries to escape is pulled down by his compatriots. In Australia, it’s tall poppies — and the tallest one gets its head whacked off. In Japan, the nail that sticks out gets hammered down. Almost every culture has its own metaphor about what happens to people who are judged by their peers to be overreaching.

In the U.S., known for its embrace of assertive self-confidence, it’s a different story, however. Personal branding is seen as a positive way to differentiate oneself in the American workplace. But for foreign professionals who grew up with a vastly different set of cultural mores and who now need to succeed in the United States or other contexts where personal branding is important, this can be quite a difficult adjustment.

In our travels as professors and speakers, we’ve often heard the same refrain. “I…

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How To Say “This Is Crap” In Different Cultures


Originally posted on HBR Blog Network - Harvard Business Review:

I had been holed up for six hours in a dark conference room with 12 managers. It was a group-coaching day and each executive had 30 minutes to describe in detail a cross-cultural challenge she was experiencing at work and to get feedback and suggestions from the others at the table.

It was Willem’s turn, one of the Dutch participants, who recounted an uncomfortable snafu when working with Asian clients.  “How can I fix this relationship?” Willem asked his group of international peers.

Maarten, the other Dutch participant who knew Willem well, jumped in with his perspective. “You are inflexible and can be socially ill-at-ease. That makes it difficult for you to communicate with your team,” he asserted. As Willem listened, I could see his ears turning red (with embarrassment or anger? I wasn’t sure) but that didn’t seem to bother Maarten, who calmly continued to assess Willem’s weaknesses in…

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Leadership Lessons You Won’t Learn in a Book


Originally posted on Georgia State University's Small Business Development Center:

Leadership Lessons You Won't Learn in a Book

Image Credit: Shutterstock and Entrepreneur.com

BY: Jake Gibson

When I look back at the first three years of bootstrapping our startup NerdWallet, the lesson I wish I had figured out earlier is you can’t read your way out of a problem.

When we first launched our company and needed advice, our tendency was to grab a book and go off in the corner to figure out how to scale our operations, hire amazing talent or motivate employees, among other queries. While these books did provide great insight, we soon learned a half-hour conversation with an expert of mentor provided invaluable leadership information we couldn’t get in a book. Not only did this person offer firsthand experience and great words of wisdom but they also provided a connection.

Here are leadership lessons for entrepreneurs that we wish we would have known right off the bat.

Start leadership development early. Realize…

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