Working Capital

A financial metric that represents liquidity available to a business or organization. A company can have both assets and profit but be short of liquidity if its assets cannot readily be converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses.
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Waiver

In a typical franchise agreement, there is an “anti-waiver” clause, which states that one party’s acceptance of late performance or non-performance of an obligation by the other party does not waive the requirement that the same obligation be met in the future.
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Vision Statement

A well-written vision statement will provide both direction and motivation to help you move toward a better future of your design. A well-developed vision statement includes measurement standards and target dates.
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Vicarious Liability

In franchising, “vicarious liability” typically refers to claims brought against a franchisor alleging that it is responsible for the action (or inaction) of a franchisee or one of its franchisee’s employees or agents.
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Vertical Restraints

Restrictions imposed by a franchisor on its “downstream” customer or franchisee. An example of such restraint may be a limitation on where a franchisee may offer and sell products or services. Also see “Price Fixing.”
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Venture Capital

A person or group of individuals who invest in a business venture, providing capital for start-up or expansion. Venture capitalists are looking for a higher rate of return than would be given by more traditional investments.
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Unilateral Termination

Wherein one of the parties to the franchise agreement decides, without the other’s agreement, to put an end to the business relationship. Unilateral termination may be allowable with “good cause” and/or for pre-agreed reasons spelled out in the franchise agreement. Either the franchisor or the franchisee may seek to unilaterally terminate a contract; whether or not it is legal to do so will depend on circumstances and on the terms of the contract.
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Tying

Under antitrust law, tying is a requirement imposed upon a buyer to purchase one product on the condition that the buyer also buy another product from the same seller. Whether alleged “tying” is illegal under antitrust law is often based on the facts of a particular case, and claims of tying are typically judged under the “rule of reason” standard.
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