|
|
Franchise Glossary |
|
#
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
|
- T - |
- Total Investment
The amount of money estimated for complete set up of a franchisee?s business, including the initial investment, the working capital, and subsequent additions to inventory and equipment deemed necessary for a fully operational and profitable enterprise.
- Trade Secret
(a.k.a. Proprietary product or service) Knowledge in the possession of the franchisor that is revealed to the franchisee by the franchise transaction. Trade secrets may take the form of construction or operating procedures, a formula for the mixing of ingredients to prepare food or the classical customer list. Appropriate legal provisions written into the franchise agreement, such as a covenant not to compete, are important in protecting these trade secrets.
- Trademark
The name associated with a product (see Service Mark). Prior to federal registration, the symbol "TM" or "SM" may be affixed near the word or words constituting the mark or symbol to inform the public that it is intended that the name be protected.
- Turnkey
The franchisor is responsible for fully developing a "turnkey" franchise until or after, the doors are open for business.
- Tying
Forcing a franchisee to purchase one product as a condition to the sale of another. Tying may be illegal if the products used in the franchise operation can be acquired from other sources at a more competitive price. The product must, however, be judged "equal to - or better than" the products specified by the franchisor in terms of quality.
|
|
|
