FRANCHISING

Franchise - is one of the win-win business tools, in which the franchisor (large company, owner of the brand) transmits franchisees (legal or natural person / IP) rights to sell or manufacture products or services of the company-franchisor. Lucky satisfying the requirements of the franchisor, transferred all the secrets and techniques of doing business, the right to use the name of the company, its brand and qualified support on all issues.

In turn, the franchisee is required to strictly follow the requirements of the business environment, as franchise - a kind of mix of free enterprise and the mission of a company. For the experience and knowledge necessary to name (and not always) once to pay lump-sum payment and remit monthly dues in the form of royalties.

Franchise allows the entrepreneur to any start-up capital (even with the most conservative) to start an entirely new business "from scratch" as soon as possible. Today it is more than a hundred branches of the economy: from mini-department for the sale of accessories to the giant plant. The franchise has stood the test of time: appeared in the early 19th century, it has found adherents among such concerns as "General Motors", "Singer", "Coca-Cola", "Pepsi", "McDonald's", as well as a huge number of gas stations, stores , catering points.

In Russia, the franchise is gaining its momentum and, as is often the case, the legal framework is very behind foreign standards. The term "franchise" is not found yet no formal reflection, so the legal relations of the parties are mostly governed by Chapter 45 of the Civil Code "commercial concession", it raises a number of problems of practical and legal sense, so the more information about the franchise is in the public domain, the better.

Such information may include:
1. Name of the franchisor.
2. Financial swelling of the franchisor.
3. The structure of the company.
4. Detailed description of selling franchises.
5. The size of the lump-sum payment and royalties.
6. The right to make changes to the contract, as well as the procedure for termination of the contract.
7. Information on other franchisees.
8. The scope of additional services in the form of training, marketing and financial support, etc.

The more expensive franchise, the franchisor provides more services, until the departure of experts to train employees of the company, starting a business and guarantees exclusive right to use the brand in a city or region. However, these bonuses and increase the requirements for the franchisee, among them the possession of its own working capital, and availability of appropriate commercial real estate, and the ability to develop and promote the brand in the region.

However, as it may sound paradoxical, buying a franchise can cost an individual entrepreneur is much cheaper than the independent conduct of business. It's simple: keep in the state of an accountant or lawyer, not to mention marketers or advertisers, often can not afford a beginning entrepreneur, exactly as apply to the audit of the company. This service is included in the monthly payment to the franchisor, relieves headaches novice businessman, because its services are always qualified assistance and the results of market research, printed advertising and other pleasant things, to find which do not always have the time or the imagination. As for the cost of the product or service - it can be much cheaper than in the ordinary bulk purchase or delivery directly from the manufacturer, as franchisor offers discounts to its partners and has a significant advantage in the procurement of goods directly from the manufacturer due to the volume or dealer agreements.

The undoubted advantage of the franchise is the fact that it is one of the most reliable and proven ways of access to international markets for even the smallest business.