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The Franchise Glossary
Master the nomenclature of the franchise industry.
5 terms
Area Developer
A person or entity with the right to open multiple franchise units in a specific geographic area within a set timeframe.
Ad Fund
A fee paid by franchisees (usually 1-4% of gross sales) to a collective pool for national or regional marketing and brand building.
Absentee Ownership
A business model where the owner does not participate in the day-to-day operations, instead hiring managers to run the units.
Acknowledgment of Receipt
The last page of the FDD that the prospect must sign to prove they received the document on a specific date.
Approved Supplier
Vendors specifically vetted and mandated by the franchisor for purchasing inventory, equipment, or services.
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