Turn-key Operation

A term used to describe a franchise that is so thoroughly organized, fully equipped, and professionally set up that the new franchisee need only “turn the key” in order to commence business.
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Training Cost/Expense

The money a franchisee pays for education and instruction. Training expenses may or may not include such items as: travel to and from the training location; room and board during training; the cost of tuition, books and supplies; and on-site startup aid. Practices vary, but training costs may be covered by the franchise fee.
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Trade Secret

A process, method, plan, formula, or other information unique to a franchisor that gives it an advantage over competitors. Appropriate legal provisions written into the franchise agreement, such as a covenant not to compete, are important in protecting trade secrets.
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Trademark

Any word, name, symbol, or device or any combination thereof adopted and used by a franchisor to identify its goods and/or services and distinguish them from those manufactured or sold by others. A careful franchisor grants only clearly defined or restricted use of its trademark. Such restrictions are spelled out in the franchise agreement and are therefore commonly referred to as “contractually limited use” of the trademark.
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Trade Dress

A term that refers to the visual appearance of an item, such as the interior or exterior of a building or a product’s packaging. Typically, trade dress denotes some distinctive quality or look that is not functional, and that signals to consumers that the products, services, or the establishment is associated with a particular brand. The overall visual manner in which a franchise business presents itself to the public, including the interior and exterior design of buildings, its choice of color, use of dress of its employees, and so on.
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Termination Legislation

A number of states have passed franchise relationship laws which govern the reasons for and manner by which a franchisor may terminate or fail to renew a franchise agreement. Such so-called “termination/non-renewal legislation” also has been proposed in Congress from time-to time but has never been passed into law. Regulations regarding termination and nonrenewal therefore differ from state-to-state.
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