Some franchising terms that you should be aware of
If you’ve been looking into buying a franchise then you may have stumbled upon a few terms which you haven’t heard of before.
However, if you’re planning on getting involved with franchising opportunities you should get accustomed to a few key terms.
If you are already clear on the basics of franchising, then knowing the meaning of these definitions may be a little easier.
Service mark: A service mark is quite similar to a trade mark. This is where franchisers grant the franchisee use of copyrighted materials- which is usually a product or service.
Business format franchise: When the franchiser puts forth a guideline for the way a business must run, then this is known as the business format franchise.
Lease franchise: This is where the franchiser rents out premises or property to a franchisee.
Joint venture: This venture is when a franchiser takes his franchise to another country. Under this technique, the franchiser partners himself with another individual in that country, where they share costs. However, sometimes the partnerships are not equal and one party ends up buying out the other.
There are many terms you will come across as you go about exploring franchise opportunities, and keeping yourself up to date with this kind of information will definitely be beneficial.