1. Chapter 8 section 4 Nicole, Caillaux Jilmar, Altamirano

2. A semi-independent business that pays fee to a parent company in return for the exclusive right to sell a certain product or service in a given area. Examples of a business franchise is, Wendy's and McDonalds.

3. Royalty A share of earnings given as payment. Royalties are typically a percentage of gross or net sales derived from use of an asset or a fixed price per unit sold of an item. Ex. A IHOPs franchise pays a percentage of their net sales per month, some franchises pay by the year or some every quarter

4. A business organization owned and operated by a group of individuals for their mutual benefit. Ex. A farm which has several different farmers who each produce a certain amount of eggs, which then sells to different companies under one name.

5. Retail outlet owned and operated by consumers.

6. Cooperative that provides a service, rather than a good

7. Agricultural marketing cooperative that helps members sell their products.

8. Institution that functions much like a business, but does not operate for the purpose of generating profits. Ex. Bailey House, Boys and Girls Club of America, and Operation Smile

9. Nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations.

10. Nonprofit organization that promotes collective business interests for a city, state, or other geographical area, or for a group of similar businesses.

11. Nonprofit organization that promotes the interests of a particular industry.

12. Advantages: management training, support, and standardized quality. Disadvantages: high franchising fees, royalties, strict operating standards, purchasing restrictions.

13. Quiz 1. define business franchise? 2. compare business association with trade association 3. what is an example of a business franchise? 4.in your own words define cooperative 5. what are some advantages and disadvantages of a franchise?