Antitrust Law

Laws adopted to outlaw or restrict business practices considered monopolistic or that restrain trade. In the U.S., the principal antitrust laws are the Sherman Antitrust Act (enacted in 1890 and frequently amended), the Clayton Act (originally adopted in 1914), the Robinson-Patman Act (passed in 1936 to add price-discrimination prohibitions to the Clayton Act), and the Federal Trade Commission Act (also adopted in 1914). Some states have also adopted antitrust laws, such as the Donnelly Act in New York. Outside the U.S., antitrust laws are often referred to as “competition” laws.
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Angel Investor

An individual or group of individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity. Angel investors invest their own personal funds, unlike venture capital firms that manage the pooled money of others in a managed fund. In some cases, if a family member or a friend were to lend you money to start a business, they also would be referred to as an angel investor.
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Advertising Contribution

The monies that a franchisee is required to contribute to the advertising fund or the advertising co-op. These funds are used to pay for system-wide advertising and promotional expenses. The manner in which advertising contributions are made varies from company to company. Many franchise agreements specify a percentage of gross sales to be spent on advertising; the breakdown of expenditures for local, regional, and/or national advertising may also be specified.
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Advertising Commitment

This is an amount that a franchisee commits to spend on advertising and promotion in the local market. These monies are controlled by the individual franchisee and used to promote the franchisee’s individual business.
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Advertising Co-op

A participatory body of franchisees—occasionally including the franchisor—that contributes money to a common fund to pay for regional or national advertising programs. Administration of advertising co-op funds varies from company to company. In most cases a committee of franchisees administer the fund. Alternatively, a special advertising committee made up of both franchisees and the franchisor may oversee use of the funds.
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