Buyer’s Glossary
The terms and questions every first-time buyer runs into.
Franchise fee, royalty, territory, FDD — the vocabulary gets thrown around fast. Here’s what it actually means, with sources.
Glossary
Franchise Glossary: Key Terms Every First-Time Buyer Should Know
Franchise Fee, Royalty, Territory, FDD, Item 19 — the vocabulary gets thrown around fast. Here's what each term actually means before you're in a conversation with a franchisor.
Costs & Fees
Franchise Fee vs. Royalty Fee: What's the Difference?
These two terms get confused constantly, and they represent two completely different kinds of payments. Here's how each one actually works.
Terminology
What Does 'Territory' Mean When You Buy a Franchise?
Not every franchise territory works the same way — and whether yours is exclusive can matter more than the franchise fee itself. Here's what to actually look for.
Legal Basics
Franchise vs. License: What's the Actual Legal Difference?
Some business opportunities are marketed as a 'license' specifically to avoid franchise regulation. The FTC doesn't care what it's called — here's the actual legal test.
Terminology
Single-Unit vs. Multi-Unit vs. Master Franchise: What's the Difference?
Franchise ownership isn't one-size-fits-all — you can buy the rights to one location, several, or an entire region. Here's how the three main structures differ.