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SBM - Chapter 4
SBM Chapter 4 vocab
Question | Answer |
---|---|
Franchise | The right to sell the licensing company’s goods or services in a particular area |
Franchising | A process for expanding a business and distributing goods and services through a licensing relationship |
Franchisor | The party in a franchise contract that specifies the methods to be followed and the terms to be met by the other party. |
Franchisee | The party in a franchise contract that is granted a license to do business under a particular trademark and trade name by the franchisor. |
Product and trade name franchising | A franchise agreement granting the right to use a widely recognized product or trademark |
Business format franchising | A franchise arrangement whereby the franchisee obtains an entire marketing, management, and supply system geared to entrepreneurs |
Franchise contract | The legal agreement between franchisor and franchisee. The contract spells out your relationship and obligations to each other |
Master licensee | An independent firm or individual acting as a middleman or sales agent with the responsibility of finding new franchisees within a specified territory |
Multiple-unit ownership | Ownership by a single franchisee of more than one unit of the franchised company |
Area developers | Individuals or firms that obtain the legal right to open several franchised outlets in a given area |
Piggyback franchising | The operation of a retail franchised outlet within the physical facilities of a host store |
Multibrand franchising | The operation of several franchised businesses within a single corporate structure |
Co-branding | Bringing two or more franchise brands together within a single enterprise |
Churning | Actions by franchisors to void the contracts of franchisees in order to sell the franchise to someone else and collect an additional fee |
Encroachment | To sell another franchise location within the market area of an existing franchisee |
Franchise Rule | A rule that requires the franchisor to disclose certain information to prospective franchisees |
Franchise Disclosure Document | A detailed statement providing information about the franchisor that satisfies the franchise disclosure requirements of the F T C. |
sharing economy | a free market system in which assets or services are shared between private individual either free or for a free |
gig economcy | a free market system in which businesses hire independent contractors to perform individual jobs, called gigs |
independent contractor | an individual that agrees to complete an assignment but retains control over the actual work to be done |