FRANCHISEE: person who signs a franchise agreement and agrees to manage his store under specific rules and contract agreement licenses

FRANCHISOR: an entrepreneur or a well-established retail company. A franchisor offers a franchisee his know-how, trade exclusive right, assistance and the goods that will be sold. A franchisor is in charge of management and coordination.

DISTRIBUTION FRANCHISING: Type of contract presupposing that a franchisor has created and proved his know-how (or commercial techniques) that he will give to his franchisee.

SERVICES FRANCHISING: when a franchisee does not sell products, however he offers services created and proved by a franchisor.

INDUSTRIAL FRANCHISING: both franchisee and franchisor are organizations.

INITIAL FEE: money paid by a franchisee to a franchisor as contribution to the franchise implementation costs

KNOW-HOW: knowledge about how something works or how something is made

MARKETING: the activity of trying to sell a company's products by advertising, using attractive packages etc.

MARKETING MIX: range of different marketing techniques which a company uses in relation to pricing and products policy to customers targeting.

MASTER FRANCHISEE: An individual or organization who has been appointed in a target country as master franchisee to develop the name's brand via sub-franchising with an exclusive right.

ROYALTY: money paid by a franchisee to a franchisor for the right to use his brand

PACKAGE DEAL: is the "dowry" the franchisor brings to the franchisee, including staff training and update, arrangement of the shop, financial assistance, management and marketing consulting.