Pet Franchise Definitions and Acronyms for Shop Owners to Know
Terms & Acronyms Constantly Change, So Keep Updated When Researching the Pet Franchise
Arbitration
An Alternative method of dispute resolution outside of a courtroom. Both parties of the argument are heard by a third-party non-partisan called the arbitrator. The decision is considered objectively and is binding. In terms of franchise, arbitration can be voluntary or mandatory and is often included as clause in contracts and documents.
Build Out
A type of property construction project in which a retail shell adds fixtures, equipment, and decor required or recommended by a franchisor to adopt company culture, brand, and interior look of franchise.
Enterprise Zones
A government program that provides funding and tax credits to individuals who open businesses in these areas. Usually inner-city and metropolis locations that aid in opening job market for local residents and gentrification programs. A very important term for Pet Franchise prospects where urban developments are a tactful purchase.
FDD–Franchise Disclosure Document
A legal document franchisors must present to prospective franchisee in a timely fashion to help them make an informed decision.
IFA–International Franchise Association
An independent organization that represents franchising on an international level through development assistance. The IFA is important for pet franchisees to be aware of to ensure updated information and programs on industry changes, programs, and education.
LP–Licensed Products
A business agreement when a company gives another company permission to manufacture its product for a specified agreed upon payment. For Pet Franchisees, there are not many faster or more lucrative ways to grow a business than by licensing patents, trademarks, copyrights, designs, and other intellectual property to others.
SBA–Small Business Administration
A government agency to help small business owners like franchisees, receive funds needed to open a business.
SBNO–Sold But Not Operated
Refers to a franchised unit that has been sold but has not begun conducting business, or operating.
7(a) Loan
A loan for eligible borrowers to start, acquire, or expand a small business. This type of loan is the basic and most commonly used loan within SBA loan program. This loan from a bank or participating commercial lending institution that the SBA guarantees 80% of the loan principal for.
Patriot Express
An SBA administered loan for veterans, or veteran families, who want to start or expand a business formerly known as CAT B flight.
PLP–Preferred Lenders Program
An SBA program that expedites procedural financial assistance. Within this program, the SBA delegates final credit decision, servicing and liquidation authority, and responsibility to selected PLP lenders. Loan eligibility criteria is constantly monitored through records held by the SBA. Lenders must demonstrate comprehensive proficiency to loan processing and servicing. If a payment default were to occur the PLP lender agrees to liquidate all business assets before asking SBA to honor its guaranty.
SCORE–Service Corps of Retired Executives
A program through the SBA that pairs up prospective franchisees with experienced executives through a mentorship program. Splash and Dash Groomerie & Boutique offers similar advice without assistance of the SBA.
Turnkey
A property location that a franchisor builds, then sells to a franchisee fully ready for operation.
VAT–Value Added Tax
A consumption Tax on the amount by which the value of an article has been increased at each stage of its production or distribution which is relevant for pet franchises supplying products at every level of sale.
Vicarious Liability
A term used when employees or franchisee is suing the franchisor for damages, intimating that the franchisor has control over the franchisee’s business and is responsible for the injury occurred on the franchisee’s property.
