Franked Investment Income

“Franked” in a financial sense refers to a tax policy that prevents funds from getting taxed more than once. One company sends a distribution to another in the form of a dividend. The money used in the dividend was already taxed once when the first company paid its taxes.

To avoid double taxation, this distribution gets designated as franked investment income. Now it isn’t taxed on the receiving end. The second company (the one that received the dividend) doesn't have to pay taxes on that income.

See: Franked Dividend.