Studied by 7 peoplebusiness format franchise
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
product distribution franchise
a franchise where the franchisee simply sells the franchisor's products without using the franchisor's method of conducting business
manufacturing franchise
franchise which is licensed by the parent company to produce and distribute its products, using supplies bought from the franchiser
UFOC
Uniform Franchise Offering Circular, a format for the disclosure which provides information about the franchiser and franchise system to the prospective franchisee
disclosure statement
the disclosure document which provides information about franchiser and franchise system
franchise
a license that describes the relationship between the franchiser and franchisee including use of trademarks, fees, support and control
franchise agreement
the legal, written contract between the franchiser and franchisee which tells each side what to do
franchisee
the person or company that gets the right from the franchiser to do business under the franchiser's trademark or trade name
franchising
a method of business expansion characterized by a trademark license, payment of fees and significant assistance and/or control
franchiser
the person or company that grants the franchisee the right to do business under their trademark or trade name
royalty
the regular payment made by the franchisee to the franchiser, usually based on a percentage of the franchisee's gross sales
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
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
breakaway franchisee
a franchisee who has unilaterally terminated their franchise agreement
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
to solicit
to contact possible customers (e.g. franchisees) in order to sell something (e.g. franchise)
rental
the amount of money paid for renting something
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
franchise fee
one-time payment to the franchiser when you sign up to become a franchisee
bulk buying
buying in large amounts, often at a reduced price
kicker
a hidden and disadvantageous factor, such as a clause in a contract
rebate
an amount of money that is taken away from the cost of something, before you pay for it; a discount
trunk
the large main stem from which the branches grow
bark
the tough material that covers the outside of a tree
legwork
active physical work (as in gathering information) that forms the basis of more creative or mentally exacting work (such as writing a book)
proliferation
a rapid and often excessive spread or increase
rebuttal
a refusal to accept that something is true
terms of a contract
the conditions that are part of the contract
breach of contract
an action that your contract does not allow
daunting
discouraging; dismaying; unnerving
lessor
a person who owns something such as a house or piece of land and leases it to a lessee
assigner
a person who assign (= transfers/conveys) something or some right (usually a contract right) to an assignee
emerging markets
markets of countries that are just starting to have influence in trade
linkage
connecting systems to work together, the action of linking or the state of being linked
conglomerate
a large organization consisting of several different companies joined by contract
extractive industry
industry that obtains its materials by drilling, mining etc. from underground
intermediate goods
goods that are partially processed but are not finished
cross-border
adjective used for organizations in two or more countries
green-field investment
direct investment in new facilities involving a big financial risk
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
vertical FDI
FDI with an industry abroad that provides inputs/distribution/further processing for the product of buyers domestic business
horizontal FDI
FDI with a company abroad that does the same business as the buyer
downstream operation
operation on which the other operations depend or that happened before other operations
upstream operation
operation that happens after another operation
book profit
a profit as shown in a company's accounts
paper profit
an increase in the value of an investment, which is not an actual amount of money unless the investment is sold
distributable profit
the amount of a company's profit that is available to pay dividends to shareholders in a particular period
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
consolidated profit
in a group of companies, the total profit from all the companies in the group for a particular period of time
operating profit
profit relating to company's normal activities of providing goods and services
gain
the financial profit that a person or company makes
windfall
a profit gained from an unexpected or unusual event
proceeds
all the money that you get from selling something
return
the total profit that you get as a result of putting your money to a bank, company etc
surplus
the amount of money that remains after a company has paid all its costs, wages etc.
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)
debt burden
amount of debt that a country has, seen as a problem
debt service
making repayments on a debt
debt justice
the idea that people should be treated fairly and equitably
debt restructuring
process wehre lenders agree that a debt can be repaid in a different way or at a different time
debt forgiveness
situation when lenders agree that a debts do not need to be repaid
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
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
Treasury
the government department responsible for a country's financial matters
secured debt
debt that is supported by particular assets of the borrower
bad debt
a sum of money that has been lent but is not likely to be repaid
outstanding debt
not yet paid debt
toxic debt
loan and other types of debt that have a low chance of being repaid with interest
revolving debt
credit that you can continuosly draw on as long as your accounts are open and you haven't hit you limit
installment debt
debt which you typically repay in regular monthly installments featuring a fixed amount
external debt
money that a country owes to lenders abroad
public debt
money owned by a local or national government
corporate debt
money owed by businesses, rather than governments or individuals
import tariff
tariff on goods coming into a country from abroad, often used as a way of reducing imports and protecting local industries
ad valorem tariff
a tariff that varies depending on the value of goods
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
multiple tariff
a tariff with different rates that depend on a country the goods are coming from
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
protective tariff
the tariff aimed at controlling the amount of foreign goods entering a country, protecting home producers from foreign competition
patent cliff
sharp decline in revenue or profitability when a firm's patents expire, opening them up to competition
conglomeration
two companies that have a common business areas
premium
an additional amount of money above standard amount or rate reduction
consolidation
reduction in companies in a sector through merger increase
streamlining
increase in efficiency often resulting in cost savings
market capitalization
the total value of all shared on a stock market at a particular time
vertical integration
joining of a customer and company or a supplier and company
forward integration
a merger with the acquisition of one's marketing outlets
backward integration
a merger with the acquisition of one's suppliers
stock swap
a merger that only involves the exchange of company's shares
market-extension merger
two companies that sell the same product in different markets
junk bond
a bond that has high rate of interest but a high risk of not being repaid
outstanding shares
all of company's shares that currently exists and are held by shareholders
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
product-extension merger
two companies selling different but related products in the same market
horizontal merger
two companies that are in direct competition and share te same product lines and markets
raid
buying another company's shares on the stock exchange, hoping to persuade enough other shareholders to sell to take control of the company
synergy
term used to describe that combined production is greater than the sum of the separate parts
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
target company
a company that is the subject of an attempted acquisition by a potential buyer
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
Note
Flashcard