Franchise opportunities in India, submitted by the brands themselves and reviewed before they publish
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Franchise glossary
Every term used on a listing here, defined in plain language. If a brand uses a word you do not recognise, it should be on this page — and if it is not, ask the brand what it means before you pay anything.
- Franchise
- A licence to run a business under someone else's brand, system and standards, usually for a fixed term and a defined area, in exchange for a fee and an ongoing royalty.
- Franchisor
- The brand owner granting the licence. On this site the franchisor writes its own listing and is responsible for the figures it publishes. How brands list here →
- Franchisee
- The person or company that buys the licence, invests the capital and runs the outlet day to day.
- Franchise fee
- The one-time amount paid to the brand for the right to open, usually covering training, the operating manual and initial launch support. It is only part of what you spend — it does not include fit-out, equipment, deposit or working capital.
- Total investment
- Everything you need before the outlet can trade: franchise fee, interiors and fit-out, equipment, initial stock, deposit, licences and working capital. This is the number that matters, not the fee alone.
- Royalty
- A continuing payment to the brand, normally a percentage of monthly revenue, sometimes a fixed monthly amount. It is charged on sales, not profit, so it is payable in a bad month too.
- Marketing or brand fund contribution
- A separate ongoing percentage collected for national or regional advertising. Ask whether it is in addition to royalty, and what the brand reports back on how it is spent.
- Payback period
- How long the outlet is expected to take to return the money you put in, expressed in months. Treat any payback figure as a projection under stated assumptions, not a promise.
- Break-even
- The point at which monthly revenue covers monthly costs. It comes well before payback, and the two are often confused in franchise marketing.
- Working capital
- Cash held back to cover rent, salaries, stock and utilities until the outlet is self-sustaining. A common cause of failure is spending it on the fit-out.
- Capex
- Capital expenditure — the one-off spend on interiors, equipment and signage. Ask whether the brand's quoted investment is capex only or includes working capital.
- Territory
- The geographic area a franchisee may operate in. On this site a listing's territories are the states and cities the brand says are open.
- Exclusive territory
- A territory in which the brand agrees not to appoint another franchisee, and sometimes not to open a company outlet. Exclusivity is only real if the agreement says so in writing, with a radius or a boundary.
- Master franchise
- A licence to develop a whole state or country by appointing sub-franchisees, in exchange for a much larger upfront commitment and a share of their fees.
- Area development agreement
- A commitment to open an agreed number of outlets in an area on an agreed schedule, usually in return for first refusal over that area.
- Unit franchise
- The ordinary case: one franchisee, one outlet, one location.
- FOFO
- Franchise Owned, Franchise Operated. You own the outlet and you run it. The most common structure in Indian retail and food franchising.
- FOCO
- Franchise Owned, Company Operated. You fund the outlet and the brand runs it, paying you a return. The return depends entirely on the brand's performance and the contract's wording.
- COCO
- Company Owned, Company Operated — the brand's own outlet, not a franchise. Useful as a comparison when a brand quotes unit economics.
- Unit economics
- The monthly profit and loss of a single outlet: revenue, cost of goods, rent, salaries, royalty, utilities and what is left. Ask to see it for an existing outlet, not a model.
- Average order value
- Average spend per customer. Combined with footfall it is how any food or retail revenue projection is actually built, so both assumptions should be stated.
- Carpet area vs built-up area
- Carpet area is usable floor space; built-up area includes walls and shared structure. A brand's minimum area requirement should say which one it means.
- Fit-out
- Turning a bare shell into the brand's format: civil work, interiors, furniture, signage and equipment. Usually the largest single line in the investment.
- Security deposit
- A refundable amount held by the brand or the landlord. Refundable is not the same as available — it is money you cannot use for the length of the term.
- Term and renewal
- How many years the licence runs and on what basis it can be renewed. Check whether renewal costs a further fee and whether the brand can refuse.
- Transfer clause
- The conditions under which you may sell your outlet to someone else, including the brand's right to approve the buyer or to charge a transfer fee.
- Non-compete
- A restriction on running a similar business during the term, and often for a period afterwards. Read the scope and the radius before signing.
- Dealership
- A right to buy a company's products and resell them, usually without operating under its brand system or paying a royalty. Often confused with a franchise.
- Distributorship
- A right to supply a company's products to retailers in an area. It is a logistics and credit business, not a retail format.
- Brand-stated figure
- On this site, a number entered by the brand itself and reviewed by us before it publishes, but not independently audited. Where the brand supplies a published source we show the link and the date. What we check →