• Franchiser
• management services fee
• franchise agreement
• advertising fee
• franchisee
• format
• operations manual
• master franchisee
• franchise fee

Franchising can be defined as a business system in which a company (or (1)) sells an individual (or (2)) the right to operate a business using the franchiser’s established system or (3). The franchisee is thus able to take advantage of the franchiser’s brand names, reputation and experience. As part of the contract (or (4)) the franchisee pays an initial sum of money, known as a (5) to the franchiser and, in addition, agrees to pay (6) in exchange for continuing advice and assistance which is usually calculated as a percentage of annual turnover. In certain cases the franchisee may also pay an (7) to contribute to the franchiser’s annual advertising and marketing costs. It is important to understand that the franchisee also has to find the necessary capital to open the business. Once the contract has been agreed, the franchiser provides an (8) which is a document containing all the information that the franchisee requires in order to manage his or her business. In some cases a franchiser may appoint a (9) to supervise all aspects of the development of the business inside a territory.