If you’re considering owning a Stand-Up Burgers franchise, you may have some questions about specific terms as you familiarize yourself with our opportunity. Fear not, as we’re here to define some important franchising terms you’re likely to come across on your journey.
Candidate. You! Much like how one would apply for a job, a prospective franchisee (or candidate) has to apply to become a franchise owner. A candidate who has reached out to us to learn more will have the opportunity to present their personal and financial background to see if they are a good fit for a Stand-Up Burgers franchise.
Company-owned locations. Company-owned (or corporate) locations are owned and operated by Stand-Up Burgers instead of a franchisee.
Discovery Day. Candidates are invited to our headquarters on a designated day to meet the leadership team and learn more about our company culture. This is a great opportunity to meet face-to-face and establish rapport before officially becoming partners.
Franchise Disclosure Document (FDD). The FDD (or disclosure statement) is the all-important document that provides all pertinent information about Stand-Up Burgers and our franchise system to the franchisee candidate. Candidates can learn what they can expect from Stand-Up Burgers and what is expected of them as a franchisee with the opportunity to review this document thoroughly (with an advisor or lawyer, should they choose).
Franchise. A franchise is a license between a franchisor and franchisee to operate a business under the franchisor’s brand as a means of expansion, with included trademark usage, support, and control.
Franchise agreement. The franchise agreement outlines the information contained in the FDD and serves as the legal, written contract between the franchisor and franchisee.
Franchisee. The individual or company that obtains the rights from the franchisor to do business under the Stand-Up Burgers brand.
Franchise fee. The franchise fee is paid to the franchisor before the franchisee can start operations under the franchisor’s brand. This fee usually covers intellectual property licenses, such as trademarks and service marks, and the right to use the franchisor’s brand name, logo, products, and systems.
Franchisor. Us! The person or company that grants franchisees the rights to do business under our brand, Stand-Up Burgers.
Initial investment. Like the franchise fee, the initial investment goes toward obtaining the rights to operate under a franchisor’s brand. Unlike the franchise fee, the initial investment is the total investment range franchisees will make to open and operate their business. Included in the initial investment are the franchise fee, real estate/construction fees, equipment leases/purchases, legal fees, and more. A range is often provided as the cost may vary depending on real estate, location, size, and other factors.
Net worth. When applying to become a franchisee, prospective owners will have to provide their net worth. Net worth is calculated by taking the franchisee’s total assets (anything owned) and subtracting their total liabilities (anything owed). Franchisees will be required to provide this information to determine their eligibility to own a business.
Return on Investment (ROI). ROI considers the value of a business compared to the cost of establishing it. This measurement can be calculated by taking the current value of the business minus the total cost to establish the business, divided by the total cost multiplied by 100.
Royalty. Franchisees are required to make regular royalty payments to the franchisor based on a percentage of their business’s gross sales. Royalties go toward resources, support, and other services franchisees may need throughout the agreement.
Term of Agreement. The term of agreement is the duration of time that the franchise agreement is valid, usually ranging from five to twenty years.
Territory. Franchisors will provide territories, or designated areas, where franchisees can establish their businesses.
Trademark. Brand reputation is a big reason why many decide to franchise with a certain franchisor. Trademarks ensure that a franchisor’s brand is protected while licensed to franchisees for its granted use.
Stand-Up Burgers is there for you every step of the way from committing to owning a Stand-Up Burgers franchise to becoming a franchisee and beyond. If you’re ready to provide comfort food the world can love to your community and lead the way to a better future, consider joining our franchise opportunity today!
Stand up for what you believe in! Contact us today to learn more about owning a Stand-Up Burgers franchise and what it takes to get started.
None of the communications made through this web page should be construed as an offer to sell any "Stand-Up Burger" franchise in, nor is any such communication directed to residents of, any jurisdiction requiring registration of the franchise before it is offered and sold in that jurisdiction. No "Stand-Up Burger" franchise will be sold to any resident of any such jurisdiction until the offering has been exempted from the requirements of, or duly registered in and declared effective by, such jurisdiction and the required Franchise Disclosure Document (if any) has been delivered to the prospect licensee before the sale in compliance with applicable law. If you have any questions concerning the registration status of "Stand-Up Burger" franchises in your jurisdiction, please contact John Billingsley, at (310) 745-5228.
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