An annual fee paid by the franchisee to the franchisor for advertising expenditures; usually less then three percent of the franchisee's annual sales and usually paid in addition to the royalty fee. Not all franchisors charge advertising fees.

A continuing periodic payment to the franchisor that, like the royalty payment, can be a fixed amount or a percentage of gross sales.

A dispute mediating process in which each side selects their representative, in addition to the participation of a chosen third (impartial) individual.

Area Franchise (aka Area Development Agreement, Master Franchise)

A franchise granted to develop a defined geographical area. May include a strict performance schedule and franchise sales rights.

The monthly fees paid to the franchise company in order to support corporate marketing and advertising. This fee is typically a percentage of your gross revenues.