Terms and acronyms you may come across in the process of finding a business or franchise.
ASIC - Australian Securities and Investments Commission
ATO - Australian Taxation Office.
Australian Business Number (ABN) - a single identifying number used when dealing with other businesses and the Australian Tax Office (ATO). For information about obtaining an ABN visit the ATO website.
Australian Business Register (ABR) - a register of information provided to the ATO by businesses and other entities when they register for an ABN.
Australian Company Number (ACN) - the number allocated by the Australian Securities and Investments Commission (ASIC) when you register a company under Corporations Law.
Australian Workplace Agreement (AWA) - an individual written agreement between an employer and employee governing terms and conditions of employment.
Award - the setting out of terms and conditions of employment, along with salary levels, through an industrial agreement between employers and employees.
Business Activity Statement (BAS) - a form used to report business tax entitlements and obligations including Goods and Services Tax and Pay As You Go Tax.
Business Broker - A person who, for a fee, acts as the agent of another, assisting in negotiating the sale for a client's business.
Capital Gains Tax - the tax on any gain you make when you sell an asset such as shares units in a unit trust and property.
Cash Flow - the measure of actual cash flowing in and out of a business.
Certified Agreement (CA) - a collective agreement made directly between an employer and a group of employees, or between an employer and a union or unions representing employees.
Corporations Law - the legal regulation of companies, securities and futures industries in Australia.
Disclosure Document - is the document that discloses information about a franchise system and the franchisor that a franchisor must supply to a prospective franchisee pursuant to the Franchising Code of Conduct.
Excise duty - an indirect tax levied on certain types of goods produced or manufactured in Australia.
Franchise - is an arrangement whereby a franchisor gives to a franchisee a right or licence to use the franchisor's intellectual property (trade marks, brands, business name) and business system to conduct an independently owned business. Subway is a popular franchise, as are McDonalds.
Franchise Agreement - is the agreement that governs the relationship between the Franchisor and the Franchisee.
Franchisee - is the person who buys the franchise and operates an independent business using the relevant brands and business system with the permission of the franchisor.
Franchising Code of Conduct - means the mandatory code governing franchising in Australia. For more information on this and to obtain a copy visit the ACCC website.
Franchisor - is the person who generally owns the relevant brands and business system and who traditionally "sells" the franchise to a franchisee.
Fringe Benefits Tax (TBT) - a tax paid by employers, on behalf of their employees, on non-cash benefits including company cars and mobile phones.
Goods and Services Tax (GST) - a broad-based tax of 10 percent on the sale of most goods and services in Australia.
Greenfield - Refers to land that has not previously been used by the franchise to conduct business, sometimes referred to as a franchise opportunity.
Intellectual Property - laws that protect the property rights in creative and inventive endeavours including art, literature, music, films, sound recording, broadcasts and computer programs.
Licence - a legal document that grants a business or person with official permission to conduct a certain activity.
Manual - means the manuals, documents and written directives usually produced by a Franchisor specifying, in greater detail, aspects of a franchise system, a franchisor's standards and policies with respect to the operation of a franchised business.
Marketing Fund - means a fund usually maintained by a franchisor, the proceeds of which are used to market and promote a franchise system. Contributions to such fund are made by franchisees and sometimes by the franchisor and suppliers of the franchise system.
Occupancy Licence Agreement - is the document pursuant to which a franchisor (who leases the premises from which a franchised business is conducted) grants to the franchisee a licence to use and occupy the premises.
Pay As You Go (PAYG) withholding - a legal requirement to hold back a portion of payments made to employees and other businesses, which is then paid to the Tax Office.
Payroll Tax - a state and territory government tax on industry, calculated on the amount of wages paid.
Sublease - is an agreement between a lessee and a sub-lessee pursuant to which the lessee subleases a premises.
Tariff - a type of tax levied by the federal government on imported goods or services.
Tax File Number (TFN) - a number allocated to taxpayers used by the Australian Taxation Office (ATO) to monitor income and taxation details.
Tax Invoice - an invoice for the supply of goods or services which must specify that it is a taxed invoice and must include an Australian Business Number (ABN).
Withholding Tax - tax deducted at the source on interest, dividend and royalty payments made to non-residents, and certain investments or payments to residents where the recipient has not provided their Tax File Number to the payer.