Average Cost Of A Franchise

average cost
total cost for all units bought (or produced) divided by the number of units
Under the average cost method, it is assumed that the cost of inventory is based on the average cost of the goods available for sale during the period.
In economics, average cost or unit cost is equal to total cost divided by the number of goods produced (the output quantity, Q). It is also equal to the sum of average variable costs (total variable costs divided by Q) plus average fixed costs (total fixed costs divided by Q).

franchise
An authorization given by a league to own a sports team
grant a franchise to
An authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, e.g., providing a broadcasting service or acting as an agent for a company's products
A business or service given such authorization to operate
an authorization to sell a company's goods or services in a particular place
a statutory right or privilege granted to a person or group by a government (especially the rights of citizenship and the right to vote)