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Business Terms

Operating Models​

COCO - Company Owned Company Operated​

COPO/COFO - Company Owned Partner/Franchise Operated​

FOFO - Franchise Owned Franchise Operated​

FOCO Model - Franchise Owned Company Operated​

The initial setup cost is born by the investor (franchise) in the FOCO model. And operations are managed by the Brand. The running cost (operations) is borne by the Brand. So, the franchisee gets a minimum guarantee or percentage of revenue earned in return. Here, the franchise investor is the owner of the business, and the company will be responsible for operating it and taking care of all the things necessary to run an outlet. The company will also have to give a fixed percentage of profit shares to the owner of the franchise.

GMV - Gross Merchandise Value​

  • Gross merchandise value (GMV) refers to the value of goods sold via customer-to-customer or e-commerce platforms.
  • Gross merchandise value is calculated prior to the deduction of any fees or expenses.
  • It is a measure of the growth of the business or use of the site to resell products owned by others through consignment.
  • Analyzing GMV from one period to another allows management and analysts to determine the financial health of a company.
  • GMV is not a true representation of a company's revenues, as a portion of the revenues goes to the original seller.

Gross Merchandise Value (GMV): Definition, Formula, Pros and Cons, and Example

Gross Transaction Value (GTV) is a calculation of the revenue in relation to commissions. GTV is used more in businesses that operate on commissions, as GTV is equal to the number of items sold multiplied by the price collected.

Net Revenue​

  • When gross revenue is recorded, all income from a sale is accounted for on the income statement. There is no consideration for any expenditures from any source.
  • Net revenue reporting is instead calculated by subtracting the cost of goods sold from gross revenue and provides a truer picture of the bottom line.

Gross Revenue vs. Net Revenue Reporting: What's the Difference?

Others​

Understanding FSN (Fast, Slow, Non-Moving) Inventory Analysis

Window dressing - an adroit but superficial or misleading presentation of something, designed to create a favourable impression.

  • "the government's effort has amounted to little more than window dressing"