Affiliate– Person or company who sells products to Franchisees that Franchisees may or may not be required to use. Disclosure in the FDD must clearly state the relationship of the Franchisor with the affiliate. This term can also describe companies who are part of a larger parent company. Additionally, the entity that runs a company outlet owned by the Franchisor is an affiliate of the Franchisor.
Amortization– the accounting technique to lower the book value of a loan or intangible asset over a set period of time.