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set out in the franchise
Fixed asset Assets agreement.
such as machinery, land
and buildings, plant and Gross profit (or
equipment which are contribution) The
normally not for sale difference between sales
and which are intended and the direct costs of
for use within the making those sales.
business.
Income (or sales
Fixed costs These are income) Money
also known as obtained by selling goods
Overheads. These are or services and from
the costs of the investments.
business, which do not
vary in proportion to Indirect costs See
changes in sales or Fixed Costs.
output.
Examples arc rent, rates,
Liabilities Amounts
administrative expenses
owed by a business to
etc.
others.
Franchise The right to
use the name of another
company, and to sell its
products or services in
exchange for a royalty.
The franchisee agrees to
abide by the conditions
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