the type of franchise which includes not only a product, service and trademark, but also the complete method to conduct the business itself, such as the marketing plan and operations manuals
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product distribution franchise
a franchise where the franchisee simply sells the franchisor's products without using the franchisor's method of conducting business
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manufacturing franchise
franchise which is licensed by the parent company to produce and distribute its products, using supplies bought from the franchiser
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UFOC
Uniform Franchise Offering Circular, a format for the disclosure which provides information about the franchiser and franchise system to the prospective franchisee
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disclosure statement
the disclosure document which provides information about franchiser and franchise system
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franchise
a license that describes the relationship between the franchiser and franchisee including use of trademarks, fees, support and control
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franchise agreement
the legal, written contract between the franchiser and franchisee which tells each side what to do
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franchisee
the person or company that gets the right from the franchiser to do business under the franchiser's trademark or trade name
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franchising
a method of business expansion characterized by a trademark license, payment of fees and significant assistance and/or control
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franchiser
the person or company that grants the franchisee the right to do business under their trademark or trade name
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royalty
the regular payment made by the franchisee to the franchiser, usually based on a percentage of the franchisee's gross sales
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area franchise
the type of relationship which allows the franchisee to open multiple locations, usually in a defined territory within a pre-agreed upon timeline
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encroachment
term describing a situation where any franchisee or the franchiser attempting to sell products or services within an area of territory that has been assigned to another owner
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breakaway franchisee
a franchisee who has unilaterally terminated their franchise agreement
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conversion franchising
the process by which existing independent businesses or dealers within an industry become franchisees when they assume the trade name and trade dress of the franchiser
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to solicit
to contact possible customers (e.g. franchisees) in order to sell something (e.g. franchise)
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rental
the amount of money paid for renting something
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fixtures
items that are permanently attached to the land, a home, or a commercial building an are considered the property of the land, home or building owner
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franchise fee
one-time payment to the franchiser when you sign up to become a franchisee
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bulk buying
buying in large amounts, often at a reduced price
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kicker
a hidden and disadvantageous factor, such as a clause in a contract
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rebate
an amount of money that is taken away from the cost of something, before you pay for it; a discount
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trunk
the large main stem from which the branches grow
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bark
the tough material that covers the outside of a tree
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legwork
active physical work (as in gathering information) that forms the basis of more creative or mentally exacting work (such as writing a book)
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proliferation
a rapid and often excessive spread or increase
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rebuttal
a refusal to accept that something is true
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terms of a contract
the conditions that are part of the contract
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breach of contract
an action that your contract does not allow
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daunting
discouraging; dismaying; unnerving
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lessor
a person who owns something such as a house or piece of land and leases it to a lessee
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assigner
a person who assign (\= transfers/conveys) something or some right (usually a contract right) to an assignee
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emerging markets
markets of countries that are just starting to have influence in trade
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linkage
connecting systems to work together, the action of linking or the state of being linked
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conglomerate
a large organization consisting of several different companies joined by contract
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extractive industry
industry that obtains its materials by drilling, mining etc. from underground
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intermediate goods
goods that are partially processed but are not finished
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cross-border
adjective used for organizations in two or more countries
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green-field investment
direct investment in new facilities involving a big financial risk
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foreign direct investment
long term investment by a foreign investor in an enterprise residing in an economy other than the one in which the foreign direct investor is based
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vertical FDI
FDI with an industry abroad that provides inputs/distribution/further processing for the product of buyers domestic business
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horizontal FDI
FDI with a company abroad that does the same business as the buyer
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downstream operation
operation on which the other operations depend or that happened before other operations
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upstream operation
operation that happens after another operation
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book profit
a profit as shown in a company's accounts
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paper profit
an increase in the value of an investment, which is not an actual amount of money unless the investment is sold
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distributable profit
the amount of a company's profit that is available to pay dividends to shareholders in a particular period
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attributable profit
a company's profit for a particular period that is owned to shareholders and is either paid as dividends or kept as reserves
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consolidated profit
in a group of companies, the total profit from all the companies in the group for a particular period of time
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operating profit
profit relating to company's normal activities of providing goods and services
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gain
the financial profit that a person or company makes
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windfall
a profit gained from an unexpected or unusual event
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proceeds
all the money that you get from selling something
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return
the total profit that you get as a result of putting your money to a bank, company etc
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surplus
the amount of money that remains after a company has paid all its costs, wages etc.
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yield
the exact amount of profit that you get as a result of lending money to a company, government etc. (the rate of income an investor receives from a security)
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debt burden
amount of debt that a country has, seen as a problem
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debt service
making repayments on a debt
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debt justice
the idea that people should be treated fairly and equitably
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debt restructuring
process wehre lenders agree that a debt can be repaid in a different way or at a different time
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debt forgiveness
situation when lenders agree that a debts do not need to be repaid
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debt collection
the activity of making individuals and business pay debts, usually ones that they have not paid on time or that they are refusing to pay
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debt consolidation
the process of taking out a new loan (often secured on one's property) in order to pay off a number of existing debts
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Treasury
the government department responsible for a country's financial matters
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secured debt
debt that is supported by particular assets of the borrower
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bad debt
a sum of money that has been lent but is not likely to be repaid
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outstanding debt
not yet paid debt
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toxic debt
loan and other types of debt that have a low chance of being repaid with interest
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revolving debt
credit that you can continuosly draw on as long as your accounts are open and you haven't hit you limit
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installment debt
debt which you typically repay in regular monthly installments featuring a fixed amount
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external debt
money that a country owes to lenders abroad
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public debt
money owned by a local or national government
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corporate debt
money owed by businesses, rather than governments or individuals
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import tariff
tariff on goods coming into a country from abroad, often used as a way of reducing imports and protecting local industries
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ad valorem tariff
a tariff that varies depending on the value of goods
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punitive tariff
an extra tariff charged on goods going into or out of a country introduced because a country has done business in an illegal way
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multiple tariff
a tariff with different rates that depend on a country the goods are coming from
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compound tariff
a tariff with two parts that depends on the parts, one that depends on the value, and one that is a fixed amount
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protective tariff
the tariff aimed at controlling the amount of foreign goods entering a country, protecting home producers from foreign competition
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patent cliff
sharp decline in revenue or profitability when a firm's patents expire, opening them up to competition
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conglomeration
two companies that have a common business areas
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premium
an additional amount of money above standard amount or rate reduction
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consolidation
reduction in companies in a sector through merger increase
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streamlining
increase in efficiency often resulting in cost savings
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market capitalization
the total value of all shared on a stock market at a particular time
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vertical integration
joining of a customer and company or a supplier and company
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forward integration
a merger with the acquisition of one's marketing outlets
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backward integration
a merger with the acquisition of one's suppliers
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stock swap
a merger that only involves the exchange of company's shares
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market-extension merger
two companies that sell the same product in different markets
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junk bond
a bond that has high rate of interest but a high risk of not being repaid
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outstanding shares
all of company's shares that currently exists and are held by shareholders
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due diligence
when a company thinking of buying another looks carefully at its accounts as it must do by law before the deal can be agreed
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product-extension merger
two companies selling different but related products in the same market
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horizontal merger
two companies that are in direct competition and share te same product lines and markets
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raid
buying another company's shares on the stock exchange, hoping to persuade enough other shareholders to sell to take control of the company
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synergy
term used to describe that combined production is greater than the sum of the separate parts
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takeover bid
a public offer to a company's shareholders to buy their shares, at a particular price during a particular period, so as to acquire a company
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target company
a company that is the subject of an attempted acquisition by a potential buyer
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tender offer
situation when an acquiring company offers to by stocks from shareholders at a premium over the market price with the intention of purchasing enough shares to control equity interest in the target company