Franchise System Basics
The person or company that owns the brand and grants others the right to operate it.
What is a Franchisor?
The franchisor group that supports locations with running the business day-to-day (often training, standards, and performance).
What is the Franchise Operations Team?
In the Franchise People Operating System, the stage where the franchise operations team and franchisee document a simple plan for building a winning team (including a Culture Map, Business Goals, and an Org Plan).
The franchisor’s step-by-step “how to run the business” documentation that franchisees are expected to follow.
What is an Operations Manual?
The stage where a new franchisee feels excited, optimistic, and believes the franchisor will be there for them.
What is the Glee Stage?
The person or company that pays fees to operate a location using the brand’s system.
What is a Franchisee?
Many brands assign these people to coach locations, drive adoption, and keep operators on-brand and on-track.
What is a Franchise Business Coach/Consultant (FBC)?
At this stage of the Franchise People Operating System, a franchisee says: “We’re opening a new location and need to staff up fast.”
What is Hire?
The document franchisors must provide to prospective franchisees with key details like fees, obligations, litigation, and financial info.
What is the Franchise Disclosure Document (FDD)?
The stage where a franchisee starts focusing on royalties/advertising fees and thinks, “What am I getting for my money?”
What is the Fee Stage?
The defined geographic area a franchisee may be granted rights to operate in (and how nearby locations are managed).
What is a Territory?
A franchise owner who operates more than one location.
Who is a Multi-Unit Operator (MUO)?
At this stage of the Franchise People Operating System, franchisees focus on retaining top talent by enhancing onboarding, engagement, feedback, and follow-through.
What is Retain?
Vendor status where franchisees are required (or strongly directed) to use a specific provider.
What is an Approved (or Preferred) Vendor?
The stage where a franchisee credits success mostly to their own hard work and starts believing they’d do fine without the franchisor.
What is the Me Stage?
The “math” of a franchise location that shows whether the business model works (revenue, costs, labor, profit).
What are Unit Economics?
In a franchise relationship, this party usually sets the standards, required tools, and operating rules.
Who is the Franchisor?
At this stage of the Franchise People Operating System, an FBC says: “Based on what we’re seeing, here are the top 3 actions we’re going to focus on next.”
What is Recommend?
A legal risk concept: when two entities might both be considered responsible for employment practices.
What is Joint Employer?
The stage characterized by frustration with restrictions and a desire to “do my own thing,” often testing boundaries of the system or agreement.
What is the Free Stage?
The franchisor’s complete package of brand standards, training, tools, and required processes that franchisees buy into when they sign.
What is the Franchise System?
In many franchise systems, the MUO often isn’t the primary user. Instead, the primary users are these people at each location.
Who are location managers / hiring managers?
In the Assess stage, the franchise operations team uses this CareerPlug product to collect and analyze franchisee data (including usage data, survey data, and data imported from other systems like payroll).
What is PartnerHub?
A proposed federal effort (referenced in franchise circles) aimed at clarifying and strengthening franchise model protections.
What is the American Franchise Act?
The “quantum leap” stage where the franchisee recognizes why consistency matters and acknowledges the value of franchisor support services.
What is the See Stage?