Entrepreneurship Unit 2 Vocabulary Flashcards

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franchise

Back

A legal agreement that gives an individual the right to market a company's products or services in a particular area.

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initial franchise fee

Back

The amount the local franchise owner pays in return for the right to run the franchise.

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startup costs

Back

The costs associated with beginning a business, including the costs of renting a facility, equipping the outlet, and purchasing inventory.

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royalty fees

Back

Weekly or monthly payments made by the local owner to the franchise company; these payments usually are a percentage of a franchise’s income.

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advertising fees

Back

Fees paid to a franchise company to support television, magazine, or other advertising of the franchise as a whole.

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Franchise Disclosure Document

Back

A regulatory document describing a franchise opportunity that prospective franchisees must receive before they sign a contract.

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sole proprietorship

Back

A business that is owned exclusively by one person.

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partnership

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A business owned by two or more people.

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corporation

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A business that has the legal rights of a person but is independent of its owners.

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share of stock

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A unit of ownership in a corporation.