Capital expenditure (CAPEX):
The investment required to set up a business and its infrastructure.
Also known as a secrecy agreement, this is a formal legal document designed to protect the franchisor against misuse of confidential information by individuals holding themselves out to be prospective franchisees.
Consumer Protection Act (CPA):
Legislation that impacts the franchise relationship.
Established businesses in the same industry sector convert to a franchised network’s brand and operating systems.