What is a franchise and types of franchises. Types and types of franchises. What is a franchise and franchising in simple words - definition and meaning of terms

Hello, dear readers of the business magazine "site"! In this article, we will detail what is a franchise and how does it work , as well as explain the essence of franchising in simple terms.

Many, deciding to start their own business, are faced with such a form as franchising (franchise business). But aspiring entrepreneurs have little knowledge and a vague idea about this way of organizing their business.

From the article it becomes known:

What is a franchise and franchising in business - what are their differences;
What kinds and types of franchises exist;
What are the advantages and disadvantages of a franchise business;
What are examples of highly successful and profitable franchises.

The information provided in this article will be useful both for those people who are just thinking about starting their own business, and for those who want to expand their business.

So, let's begin!

Franchising and franchising: what is it, what is the difference, what are the pros and cons of opening a franchise business - we will talk about all this in this issue in simple and understandable words

The word "franchise" comes from the French franchise, which means "favor" and "privilege".

Franchise ( from English. A franchise is a type of agreement under which one party transfers and another acquires the rights to a business model, use of technology and trademarks.

This term also has a synonym - commercial concession , however, it is used less frequently.

1.1. What is a franchise in simple words - a description of the term + the principle of operation on a real example

If we reformulate this definition in such a way that it is even more understandable, then franchise is the purchase of a right to open a business under the brand of any well-known trademark. At the same time, not only the trademark is used, but also technologies - both production and sales, as well as the concept of entrepreneurial activity.

Thus, an actually ready-made business is bought, the payback and profitability of which have already been tested in practice.

Franchisor and franchisee - who is it?

The party that buys the right to sell goods and services under a certain brand is called franchisee. The party selling such a right is called franchisor.

How does it work in practice?

For example, someone Andrei would like to start working for himself and do business. For this, he either.

After collecting a certain amount of money, Andrey decides to buy a restaurant franchise fast food. So he acquired the status of a franchisee.

Having organized such a restaurant in his city, Andrei soon began to receive income that he did not have while working for other entrepreneurs.

Now he can open a whole chain of such fast food restaurants in his city.

1.2. Related terms related to franchising

In order to better understand this issue, you need to know other terms that are directly related to franchising and franchising.

Despite the fact that in our country the first franchise agreements began to be concluded relatively recently, in the world this widespread practice - and there is generally accepted terminology that makes such contracts and relationships between franchisee and franchisor as clear and transparent as possible.

First of all, since a franchise is understood as the transfer of a license, you need to know what it is.

In this case license is the transfer of rights held by the franchisor (know-how, technology, software, etc.).

At the same time, know-how is any information (concerning production, product sales, business organization, etc.) that has commercial value, since it is known only to their owners.

That is, under know-how refers to the secrets of doing business or production, on which this or that business is built.

Documents by which the right to use a particular trademark is transferred and purchased can be called differently, while having the same meaning:

franchise agreement;
license agreement;
commercial concession agreement.

When such a right is bought, the buyer (or franchisee) makes what is known as lump-sum fee is a payment for the purchase of a franchise . If we are talking about commodity franchising, then instead of paying a fee, the contract may provide for purchase of a specific inventory.

Often the contract is concluded in such a way that it is periodically required to be renewed. Then a lump-sum fee is paid each time the contract is renewed.

In addition to the lump-sum fee, the franchisee must pay royalty .

What is royalty in a franchise - a description of the term

Under royalty understand those payments that are periodic and payable throughout the term of the franchise agreement. These can be fixed amounts or a certain percentage of the business's profits.

In commodity franchising, periodic purchases of goods act as royalties.

When the contract is signed, the franchisee receives franchise package . It can be like in printed form, as well as in electronic. Such a package includes all the documents and materials with which the franchisee can easily and quickly start a business.

The franchise package must include:

franchise policy;
business management guide;
corporate identity standard passport;
all necessary legal documents.

Assistance required for correct operation staff, software etc.

The franchisor is no less interested than the franchisee in making the set of documents as complete as possible - after all, the reputation and popularity of the entire business depends on the correct organization of the business under its trademark.

cherishing their business reputation franchisors take a very responsible approach to the formation of a franchise package.

Take note!

A person who wants to become a franchisee and is looking for the most interesting offer, can get acquainted with companies offering to conclude a franchise agreement on the relevant resources with complete catalog of franchises .

You can always find information both about the companies themselves and about the cost of concluding an agreement, lump-sum and periodic contributions, the amount of investments required to start, as well as contacts where you can contact company representatives to discuss the details of the transaction.

A novice businessman can either simply purchase a franchise and open a business on it, or master franchise, according to which he will become the sole owner of the right to conduct his chosen business in a certain territory (for example, in a city, region, district, etc.).

"Franchise" and "franchising" - what is the difference between these concepts?

2. Is franchising and franchising the same thing or not?

Very often people who do not have an economic education confuse the concepts "franchise" and "franchising". But to be able to distinguish between these two concepts is necessary - especially for those who want to conclude a franchise agreement.

Under the term "franchise" means the very acquisition of the right to sell goods or services under a certain brand name.

Often the word "franchise" is replaced by "franchise package". Although, in fact, the franchise agreement is first signed, followed by the receipt of the company's franchise package. The composition of the franchise package is strictly specified in the contract and can be discussed when signing it.

Franchising: what is it - an overview of the concept in simple words

Franchising is the process of creating, building and running a business on the terms of a franchise agreement.

Thus, the franchise acts as the subject of relations between the franchisor and the franchisee, and franchising means doing business on the terms of the franchisor.

What are the franchises - 7 main types and types

3. Types and types of franchises - 7 main varieties

Since doing business under a franchise agreement has been used for quite some time, there have been several various kinds franchises They may differ in the degree of involvement in business management by the franchisor, in the form of payment for the franchise agreement, in the place of manufacture of products that the franchisee sells, etc.

Thus, everyone who would like to work under a franchise agreement can choose the most suitable option for themselves.

Type 1. Classic or standard franchise

This is the most used franchise in the world. As a rule, such an agreement implies the payment of a lump-sum fee, as well as the presence of periodic deductions in favor of the franchisor.

At the same time, the franchisor has the right to control the process of doing business of the franchisee and make its own adjustments. It can also verify the compliance of the business built by the franchisee under the license agreement with the requirements, rules and codes of the trademark.

Type 2. Free franchise

Within the territory of Russian Federation It is this form of commercial concession that has received the greatest use.

A distinctive feature of the free franchise- This is a low royalty rate and greater freedom of action for the franchisee.

Thus, the entrepreneur is practically not controlled by the franchisor and has the opportunity to run his own business and develop it independently.

Type 3. Import-substituting franchises

In recent years, due to the introduction of economic sanctions in relation to Russia, it has become increasingly popular purchase of import-substituting franchises . The demand for them is explained very simply - consumers in our country are accustomed to goods and products of European production, which are of high quality.

Since the import into our state and the sale of certain such goods and products is now prohibited, Russian entrepreneurs seek to enter this market and offer consumers similar products, but manufactured in the Russian Federation.

Thus, when buying a franchise, the technology for the production of certain goods and services is acquired, and the production itself takes place on the territory of our country. This is very profitable and allows not only to provide our citizens with the things and products they need, but also to receive good profits from this.

Type 4. Silver franchise (turnkey business)

In this case, we are talking about buying really ready business , in the creation and promotion of which you do not need to invest time and money. The owner of a particular trademark independently opens a branch of his company in a particular city, and then sells this business to a franchisee. As a rule, in this case there are monthly payments - percentage of affiliate profit .

It's a very convenient way to get started. own business for those who do not have much business experience. First of all, since there is no possibility of making a mistake at the stage of opening an enterprise, and the possibility of a created business not meeting the trademark standards is also excluded.

When buying a silver franchise, you can immediately start working and earning income.

Type 5. Business for rent

Some franchisors prefer rent a business. In this case, the benefit of the franchisee is that he does not need to create and build a business on his own, and the benefit of the franchisor is the ability to receive monthly income without spending time managing the business. By the way, we already wrote about that in one of our publications.

At the same time, the franchise agreement stipulates what percentage of the income the franchisor receives, and what percentage goes to the franchisee. This is a mutually beneficial cooperation and an option suitable for aspiring entrepreneurs.

Type 6. Golden franchise (master franchise)

Those people who already have experience in running a business and who want to work "big" can purchase the so-called "master franchise" .

By concluding such an agreement, the franchisee receives monopoly rights for business in a certain region or city.

Of course, the cost of such a license is very high, but in the future these costs will definitely pay off - after all, the entrepreneur will be able to open a network of companies in this region and remain the only representative of the trademark in the territory designated in the contract.

Type 7. Corporate franchise

This commercial concession agreement is ideal for inexperienced businessmen. It assumes that the brand owner will control the development of the business and be able to run it on their own terms.

Opportunities to make any changes for the franchisee are small. However, it will be easier for a beginner to learn how to do business under the guidance of an experienced team of professionals.

When choosing a type of franchise, you need to evaluate your financial opportunities, ambition and business experience. In any case, with such a variety of franchise types, there is always a way out - even for those with small start-up capital and experience.

Franchise business - the main pros and cons

4. Advantages and disadvantages of a franchise business

People who would like to become entrepreneurs by buying a franchise often ask themselves the same questions:

how cost effective is it?
Does it make sense to invest money, effort and time in franchising?
What are the advantages and disadvantages of such a business?

To answer these questions, you need to think about pluses and cons starting a franchise business.

Pros (+ ) starting a business with a franchise

There are five main advantages of franchising for the franchise buyer.

Plus 1. Minimal risk when doing business

When an entrepreneur decides to start a business, there is always a chance of failure- the attractiveness of a product or service for consumers may be incorrectly assessed, etc. However, in the case of franchises, this is practically impossible- after all, a novice businessman receives complete instructions development successful business .

As a result, if everything is done according to the instructions, the profit will not be long in coming. The path that the franchisee has to go through has already been traveled by the owner of the trademark - and it is guaranteed to bring income.

Plus 2. Brand recognition

A lot of money if a company is created "from scratch" , goes to its promotion and brand advertising. When it comes to a franchise, such expenses will not be required - after all, the trademark is already well known to potential consumers of a product or service.

In this case, the company already has a positive reputation, so the franchisee can use an image that has already gained people's trust and is known in the market.

Plus 3. Quick profit

Since there is no need for advertising and time to promote the company, the first profit will be received very soon after the opening of the enterprise under a franchise agreement. And it's not just beautiful words, a proven fact.

So, when McDonalds opened in Moscow, on the first day of its work several thousand people queuing up for this place before his discoveries.

Therefore, there is no need to worry about how to live the first time while the business is at the development stage - the first income will be received very quickly. In a separate article, we also wrote, and what ways extra income possible in free time from the main work.

Plus 4. Minimal spending on advertising campaigns

The lion's share of expenses when opening any company falls on advertising. Moreover, it is not so easy to find good specialists which will be able to attract the maximum number of consumers to the company. Moreover, success is largely determined by the extent to which it is able to retain its customers.

A franchise agreement allows you to avoid all these costs and headaches for a businessman. Franchisors supply their franchisees with a complete package of documents for starting and running a business, and this package includes complete recommendations for running successful advertising campaigns and all kinds of events.

Plus 5. Ability to receive support and receive training

Usually, starting your own business, a person finds himself alone with this situation. He has no one to ask for help or advice. When concluding a commercial concession agreement, everything is different - not only he himself is interested in the success of the franchisee, but also the owner of the trading network. That is why the franchisee will receive maximum support and, if necessary, complete training. As a result, he will be able to successfully conduct his business and receive the desired income.

In addition, most franchisors offer ongoing supervision and assistance from qualified lawyers in situations where such assistance is needed.

Thus, with the full support of the franchisor, the business will develop very quickly, and the franchisee will make a profit. But there are also disadvantages of starting a franchise business.

Disadvantages (− ) of Franchise Business

There are also five main ones.

minus 1. Lack of “self-maneuver” capability

As a rule, all actions of a novice entrepreneur are strictly regulated, and he must adhere to the rules and codes that the franchisor has provided him with.

A businessman does not have the opportunity to show his creativity in the conduct of his business - he must coordinate everything with the owner of the trademark.

Minus 2. The need to make periodic payments or purchase goods and equipment

If the entrepreneur does not work under a franchise agreement, then he can appropriate all the income for himself and spend it as he wishes. And the franchisee must make periodic payments(usually once a month) and, in some cases, purchase goods or equipment from the brand owner. It - additional expenses , which will need to be deducted from income throughout the duration of the franchise agreement.

Minus 3. High price for franchises

Despite the fact that starting your own business under a franchise agreement is much easier than without one, franchises cost a lot. This is especially true for well-known and promoted brands and master franchises.

Minus 4. Control by the brand owner

Not every entrepreneur will like that someone controls his every step. And it is impossible to avoid this control when buying a franchise. The franchisor will oversee all business processes to make sure that the franchisee is doing everything possible to extract maximum profit from the business.

Minus 5. The impossibility of applying a creative approach

The franchisee has no right to independently choose the direction of development of his business or show creativity in the development of marketing and other programs. It must strictly follow the development program proposed by the franchisor.

Thus, franchising, like any other form of business, has not only advantages.

The table below lists the main criteria (parameters) for comparing the opening of a franchise business and a traditional business:

№	Comparison options	business as usual	franchise business
1	Business development timeline	Months and years (-)	Several weeks (+)
2	Risks	High (-)	Low (+)
3	Initial investment	Large (-)	By agreement (±)
4	Support and help	Missing (-)	Available (+)
5	Advertising expenses	High (-)	Low (+)
6	Freedom to do business	High (+)	Low (-)

The table shows that the main differences between a franchise business and a “regular” traditional business are the timing of business promotion, advertising costs, risks, and initial investment. Money and freedom to do business.

Popular franchises for small and medium businesses

5. TOP 5 franchises for those wishing to become a franchisee

Before deciding to conclude a franchise agreement, you need to look at real examples of such a business. It is worth paying attention to the companies included in TOP-5 the most popular brands offering the conclusion of such an agreement.

1 place."McDonalds"

This company is known, without exaggeration, all over the world. The owners of this company came up with the idea of franchising, deciding to beat the competition and expand their network Catering outside of America.

However, when thinking about acquiring a franchise from this company, you need to be prepared to invest a lot of money in the first place. initial stage. To start this business, you need not only to purchase a franchise for 45 000 dollars, but also have an initial capital of at least 950 000 dollars. Not every novice businessman can afford it.

Most often, franchises are bought by wealthy businessmen as an investment.

2nd place. Popular chain of supermarkets "Perekrestok"

These supermarkets sell products for those who prefer high quality, freshness and good service. But in order for this franchise to bring its purchaser a stable good income, the supermarket must be located in a busy and densely populated area of the city, have parking and convenient access roads.

In addition, the franchisor places high demands on the area of the premises in which the supermarket will be located, on internal communications, lighting, and even on window dressing.

3rd place. Subway Restaurant

This is an ideal option for start-up entrepreneurs, because the cost of the initial fee for a franchise agreement is 7 500 dollars. In addition, the franchisor is happy to provide its partners with various bonuses and benefits, reduce the lump-sum fee and provide comprehensive support in resolving legal and marketing issues.

It is for these reasons that the network of these restaurants in Russia is constantly growing. Currently operating approximately 700 such restaurants in different regions of the country.

4th place. "Coffee to go"

Coffee to go coffee houses deservedly occupy the fourth place in the ranking. Since the cost of a franchise is only from 100 to 400 thousand rubles. Many people who want to open their own business on the basis of a franchise agreement opt for this particular brand.

In addition, this is a very popular destination, because there are more and more lovers of high-quality and delicious coffee, as well as those who spend most of the day on the run and cannot stop at a cafe to drink coffee.

5th place. "Orange Elephant"

In fifth place in the TOP-5 is the franchise of the chain of stores with goods for children's art "Orange Elephant". The dynamics of the development of these stores is impressive, in addition, this network has not yet been promoted to the maximum and is not present in all cities. And this means that franchisees have a greater chance of success with relatively little competition.

At the same time, the network not only sells, but also manufactures goods for children's creativity presented in its stores. Today the network has franchisees in America, Turkey, Israel, Iceland and many other countries.

Thus, each novice merchant can choose the franchise that is right for him - both in terms of the specifics of the activity, and in terms of cost and requirements for initial capital.

6. FAQ - frequently asked questions regarding franchises

There are questions that are asked most often by those who wish to conclude a franchise agreement.

Question 1. How to choose the right franchise?

First of all, you need to decide on the amount that the entrepreneur is willing to invest in his business at the initial stage. Today you can find cheap franchises and those that require very large financial investments.

There is no need to overestimate your capabilities, because the success of a business largely depends on this.

By selecting several franchisors in the desired price category, you need to study all these brands and answer the following questions for yourself:

what are they doing (what goods or services are offered);
what is the policy of these companies;
what kind of advertising they do.

Based on this, you need to focus on one company - the most suitable for its specifics. This is very important, because a businessman should be happy to deal with his “brainchild”. There is no point in turning into the business of your life what you do not have a soul for.

Then you need to contact the representatives of the company and discuss all your questions regarding the conclusion of the contract. If everything suits you, then the deed is done and the franchise has been chosen.

Question 2. Is it worth opening a franchise business if there is no experience?

One of the main benefits franchising is that it allows you to open your own business, even for those who had nothing to do with the business before.

It is safe to say that in the case of a franchise, the risks for the entrepreneur are minimal. This is due to the fact that, after the conclusion of a commercial concession agreement, the trademark owner (franchisor) provides the novice merchant with a business plan and detailed instructions for creating and promoting a business. By the way, you can in one of our previous materials.

Thus, the franchisee not only receives a guaranteed income in the very near future, but also invaluable business experience.

Question 3. How much does a franchise cost and what does its cost depend on?

The cost of concluding a franchise agreement can be different.

The price depends on several factors:

brand promotion;
type of franchise for example, a master franchise will always cost much more than a standard franchise - but it will also bring large incomes);
ambitions of the brand owner.

In addition, you need to take into account lump-sum and periodic payments in favor of the franchisor - they can also be attributed to franchise costs.

There are franchises for example, "Orange Elephant"), which stand relatively inexpensive, do not require very large material investments for starting stage, but quite profitable for your own business.

And there are others, such as, for example, a franchise of a KFC fast food restaurant, where the initial payment is from 47 thousand dollars, and investments from 700 thousand $.

KFC restaurant franchise

Question 4. Is there a franchise without investments?

Turnkey business without investment- this is probably dream any budding entrepreneur. But is it possible to realize this dream?

Indeed, there are companies that offer to conclude a franchise agreement without the first - lump - sum payment. However, this does not mean that the business does not need to invest money. Franchisees have to invest own funds when building or renting premises, ordering advertising campaigns and paying wages employees. Thus, it is unrealistic to completely avoid costs at the initial stage.

In addition, any franchisor will require royalties, which are usually around 10 % of franchise income.

Therefore, in any case, you must not forget about the necessary expenses. But in the case of a franchise, the business will really pay off much faster than a regular one.

Question 5. What kind of franchise business can be opened in 2019 with minimal investment?

When deciding to open your own business under a franchise agreement in 2019, you need to remember about five most popular destinations , which are more likely to bring quick income:

Internet sphere;
the service sector and the provision of services;
catering industry;
trade;
production.

There are franchises that are promising and promise quick profits to their franchisees:

Multiwindows- a company that sells windows from different materials; initial payment - from 100 thousand rubles.
TicketCom- a company that puts advertising on checks that are issued to customers when paying for purchases in stores; initial payment - from 150 thousand rubles.
linguitania– a network of study centers foreign languages, lump-sum contribution - 220 thousand rubles.
STARDOG!S– catering outlets that sell hot dogs. The lump-sum contribution can range from 22 to 330 thousand rubles.
Gift Calendar- a network that sells souvenirs and accessories for the holidays, requiring initial capital in the amount of 790 thousand rubles.

P.S. You can also check out profitable ones for beginners in one of our articles.

7. Conclusion + related video

In this way, concluding a franchise agreement - real and enough easy way start your business from scratch. It is especially suitable for those who do not yet have experience in creating and managing a business.

In addition, in the process of organizing and running such a business, you can learn a lot from more experienced businessmen - brand owners.

Many successful entrepreneurs today started out by buying a franchise - and they were not mistaken with their choice. Anyone can do this, even without having a lot of money for a down payment!

The RichPro.ru team wishes its readers success in all their business endeavors! We are waiting for your assessments of this material, comments and thoughts on the topic of publication in the comments below. Thanks in advance!

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Classmates

One of the important components of a successful business is a clear understanding by the entrepreneur of the essence of franchising and its varieties.

Franchising- a type of market relations in which the franchisor (one party to the agreement) transfers the franchisee (the second party) for a certain fee the right to conduct any type of business using the developed technology.

According to the type of relationship between the parties to the agreement (the franchisor and the franchisee), there are several main types.

1 . Commodity franchising. This type of relationship is also called franchising goods. It is used mainly in the trade area. By concluding such an agreement, the franchisee receives the right to sell the goods produced under the brand name of the franchisor.

As a rule, the franchisee has the right to after-sales and warranty service of the goods. The franchise agreement strictly regulates the sales technology, the range of services and goods, and clear rules for using the manufacturer's trademark.

If the franchisee purchases from the manufacturer shop equipment or real estate, the franchisor provides him with financial support, supplies advertising technologies, and trains staff. Examples of commodity franchising are the sale of cars, fuel, household appliances.

2. Franchising production (industrial). A company that has a patented technology for the manufacture of goods transfers to the franchisee the right to manufacture and sell products under its brand name.

The company transfers to the second party, in addition to the patent for production, raw materials and exclusive ingredients that only it produces using secret technologies.

In addition, the contract contains clear requirements for production process, the volume of products, its quality, sales plans. The qualifications of the staff and full reporting are also negotiated.

A large company supplies equipment on preferential terms, provides assistance in training employees, organizing production, sales and creating product advertising.

Production franchising is widespread in the production of non-alcoholic soft drinks. A prime example is Coca-Cola.

3. Service franchising . The franchisee is granted the right to engage in a certain type of service under the trademark of the franchisor, which provides the partner with equipment, advertising and marketing technology.

In addition to support, the franchisor necessarily monitors the work of the "junior" company. An example of service franchising is a network of dry cleaners.

4. Business format franchising (business). In this case, the franchisor transfers to the partner not only sales rights, but also a license to organize this type of business.

The documents clearly define the business concept, provide detailed instructions on employee training, requirements for the design of the interior of the company, for the uniform of the staff. Advertising policy, reporting, relationships with suppliers of goods are regulated.

Thus, the franchisee company operates under the sign of the franchisor and necessarily adheres to the same business concept.

Strictly enforces conditions big company. This type of franchising is used, for example, by a chain of fast food establishments (for example, McDonald's).

Business franchising is gaining momentum every year and today, according to experts, is one of the most promising, crisis-resistant varieties of doing business.

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Franchise - the terms of the insurance contract, according to which the insurer is exempt from compensation for losses in the prescribed amount. The deductible can be set in absolute or relative terms to the sum insured and the assessment of the insurance object, as well as in percentage to the amount of damage. There are two types: conditional and unconditional.

1) A conditional or integral (non-deductible) deductible is understood as the release of the insurer from liability for damage not exceeding the established amount, and its full coverage if the amount of damage exceeds the deductible.

The conditional deductible is entered into the insurance contract using the entry “free from x percent” (where x is 1, 2, 3, ... is the percentage of the sum insured). If the damage exceeds the deductible, the insurer is obliged to pay out the insurance indemnity in full, regardless of the stipulation made.

2) Unconditional, or excess (deductible), franchise means that this franchise is applied unconditionally without any conditions. With an unconditional franchise, the damage is in all cases compensated minus the established franchise. An unconditional deductible is drawn up in the insurance contract with the following entry: “free of the first x percent” (where x = 1, 2, 3, ... - interest always deducted from the amount of insurance compensation, regardless of the amount of damage).

With an unconditional deductible, the insurance indemnity is equal to the amount of damage minus the amount of the unconditional deductible. The franchise agreement saves on the investigation of the circumstances of the case.

11. Organizational structure of the insurance process

1) risky circumstances;

2) risk situations;

3) the value of the object of insurance;

4) insurance event;

5) sum insured;

6) insurance premium;

7) insured event;

8) damage to the policyholder;

9) insurance payment.

The relationship between these elements forms the organizational structure of insurance. Before concluding a contract, the insurer studies and analyzes, observes and takes into account various significant factors of the insurance object. Determines the state and environment in which it is located.

For example, the procedure for concluding and maintaining a life insurance contract is an algorithm of sequential operations carried out by the insurer and the insured, the main stages of which are as follows: 1. Preparation of the contract. 2. Acceptance (acceptance) by the insurer. 3. Concluding an agreement and issuing an insurance policy. 4. Performance of the contract: a) amendments to the contract; b) payment of insurance premiums; c) management of mathematical reserves accumulated under the contract; d) carrying out possible financial transactions under an insurance contract. 5. End of the contract.

12. Intermediary activities in insurance, accident commissioners, adjusters and surveyors

Organization of services of adjusters, emergency commissioners, surveyors: preparation and execution of documents related to insured events, as well as necessary for the implementation of insurance payments, organization of insurance payments on behalf of the insurer and at his expense.

emergency commissioner- an individual or legal entity whose services are used by insurers to protect their interests in the event of an insured event with insured property.

The accident commissioner acts in strict accordance with the instructions that the insurer sends him:

1) inspect damaged property;

2) determine the nature, causes and amount of the loss incurred;

3) at the direction of the insurer, is engaged in the sale of damaged property;

4) carry out a search for the missing property;

5) collects information about the local insurance market.

Adjuster- an individual or legal entity representing the interests of the insurance company in resolving issues related to the settlement of the declared claims of the insured in connection with the insured event. The adjuster performs risk assessment after an insured event (risk realization) and seeks to reach an agreement with the insured on the amount of insurance compensation payable based on the obligations of the insurer taken under the insurance contract concluded by him.

Surveyor- an expert inspecting the property that is accepted for insurance, determines its value and the acceptable sum insured. Based on their conclusion, the insurer decides on the possibility of insuring a particular object, on the amount of the tariff rate.

Before starting a business, you need to carefully understand what franchises are. Recall that it can be commodity, industrial or "in the service sector" - look at the site. But according to the nature of the relationship between the franchisor and the franchisee, it can also be divided into different types franchises

This is a standard franchise, which involves strict adherence to the rules of the franchisor, the regular transfer of royalties, and the payment of a lump-sum fee. The organizing company critically evaluates all the actions of its partner, requires him to submit a monthly report, monitors the fulfillment of the terms of the contract, sets the trade margin and controls how much profit the point brings.

But on the other hand, a novice franchisee quickly understands the business and passes the break-even point. Unfortunately (or fortunately?), this type of franchise is not very common in Russia, since most entrepreneurs still prefer to run their business on their own, at least “almost”.

This type of franchise allows businessmen to "feel like owners." They independently resolve all issues related to the business, set trade margins, and make sure that the business is profitable. In fact, when working on a free franchise, entrepreneurs are the same dealers, only they have certain advantages over them. They are entitled to:

use of the trademark of the company-organization;
work under her promoted name;
receiving free consultations from managers;
passing trainings and courses conducted by the franchisor;
good discounts on the purchase of goods produced by him.

And one more thing: the franchisee is given a ready-made list of verified suppliers working on special conditions. The initial contribution is minimal, and the royalty is small, which allows you to start a business without large investments. And most importantly: the company almost does not control the partner's activities. Therefore, this type of franchise is common in the CIS.

This is the most expensive type of franchise, but also the most convenient. In this case, the franchisor provides the entire business on a turnkey basis for a certain rental amount. The tenant, that is, the franchisee, becomes entitled to conduct business as he pleases. The organizing company does not monitor its activities at all. The only requirement is that the partner provide the proper level of profit. Note: this type of franchise is popular in Europe, but in Russia this format of cooperation is almost never found.

Here, as in the previous case, the franchisor organizes the business himself. He creates a branch of the company on the territory of the partner that meets all its standards. But he DOES NOT transfer ownership rights to the entrepreneur, but continues to carefully monitor all his actions. The franchisee runs the business and gets a percentage of the profits, that's all. In fact, he is an ordinary manager.

This type of franchise is also called "golden". It allows franchisees to resell the brand throughout the country, and not just in their region. Naturally, everything happens under the control of the organizing company. And one more thing: when working on such a franchise, an entrepreneur has the right to “occupy” a separate region. That is, work alone.

This type of franchise implies strict control by the franchisor. It is he who controls the business and owns the assets. The entrepreneur has no right to independently make decisions and do anything without the consent of the organizing company. At the same time, it is strictly forbidden to break the contract and create the same business on the territory, but under a different brand name. It's written in the contract!

This is the most old view franchises in Russia. Entrepreneurs worked on it back in the 90s of the last century. They took the brand idea, renamed it and started doing business on a foreign concept. Only then it was illegal, but now everything is official, that's the whole difference.

This is the last type of franchise on our list. He is in high demand. But not all Russian banks ready to work on it. And if they do, it is very reluctant. Therefore, those wishing to buy a banking franchise line up.

When a person opens his own business, he has to face a lot of problems - to promote a brand from scratch, to develop technologies. In such conditions, it takes years to get a decent result. But at this time, competitors do not stand still, as the heroine said Carroll, « to stay in place, you have to run". That is why everyone who knows what a franchise is and how it works, tries to compare the possibilities of a franchise before investing big money in their business.

What is a franchise and how does it work? How to buy a franchise and what typical mistakes does the entrepreneur? We will try to provide as much information as possible.

What is Franchise in simple words

Franchise is when enterprises with established technology and a well-known brand allow other companies to use their name. In addition to the name, they also pass on other knowledge, such as production technologies, corporate standards, patent rights and inventions. This is the definition of a franchise in simple words.

The first company that comes to mind when we hear the word "franchise" is McDonald's, but franchising has much older roots. Isaac Singer, inventor of the famous sewing machine Zinger, in 1858, was the first to lay the foundations for the concept of franchising. He began to sell licenses to distributors in different parts of the country, supplying them with their own merchandise and training staff.

According to the formal definition, a franchise is a permission for a legal or natural person to use the benefits franchisor. At the same time, the one who acquires this right is called franchisee, and the whole business model is called franchising.

Sometimes this right is transferred free of charge, but more often franchisee obligated to pay for the benefit received. The fee is divided into two parts:

Lump sum. A one-time amount that is transferred at the conclusion of a franchise agreement.
. Monthly or annual payment.

Each franchisor develops its own conditions, which may differ significantly.

AT Russian legislation There is no such thing as a franchise. In Chapter 54 of the Civil Code of the Russian Federation, a definition of a commercial concession is introduced, according to which a complex of benefits is transferred by the copyright holder.

The aforementioned chain of fast food restaurants owns less than half of 36000 restaurants; most open on a franchise basis. grants the right to use your famous brand, logo, menu and so on. Businessmen who own restaurants, in turn, pay fees (royalties), which are calculated as a percentage of sales.

This is the main compromise in the franchise relationship. Franchisor ( in this example McDonald's) allows other people (franchisees) to use the business model and brand awareness, and in return receives a percentage of the turnover.

What are royalties and franchise fees?

One of the most frequently asked questions is how much does it cost to open a franchise business? You can estimate the costs at the stage of choosing a franchise.

The initial payment in the form of a fixed amount is called lump sum, periodic payments for continued cooperation - royalty.

In exchange for the right to use the franchisor's name, product or technology, some or all of the following fees are usually required:

Lump sum– initial franchise fee, which is non-refundable. The size of the amount varies greatly, but the trend is as follows: the higher the degree of brand recognition, the more expensive the entry "under the wing" of a strong company.
paid on a regular basis monthly or quarterly) during the term of the contract. A kind of membership dues, in fact. Fixed amounts or percentages of gross sales - the options are different.
Tuition fee- some franchisors include training in the price of a lump-sum fee, some take it out as a separate line.
Advertising fees are contributed to the advertising or marketing fund of the parent company. This money is spent on TV and radio advertising, development and printing of POS materials (booklets, posters, flyers).
Franchise renewal (renewal) is the fee for renewing the franchise agreement.

Large franchisors often develop multiple brand entry schemes. Preliminary calculations of payback and profitability for a particular region are taken into account.

For example, the franchise 220 volt”is transferred free of charge, however, the partner undertakes to purchase goods only from the franchisor.

Franchise types

The word franchise translated from French means " benefit". As you know, benefits are different. Depending on how different franchisors allow their name to be used and what they offer in return, there are three main types:

business franchise;
commodity;
production.

Business Franchise

What is a business franchise? This is the most common type of relationship in which the franchisor offers an established business, including the name and trademark, to independent entrepreneurs. good example of this type are fast food restaurants. The franchise catalog contains both long-established brands - Papa Johns Coffeeshop Company, and new ones - " Food from the Champion", bar " Honey, I'll call you back».

The franchisee receives assistance from the parent company in choosing, planning and designing the premises, recruiting and training staff, and developing a marketing component. Lump sums and royalties vary greatly, sothat it is necessary to carefully look at the conditions of each particular company. This type of franchise is often referred to as a "turnkey business" as the franchisee gets almost everything they need to start their own business.

Commodity franchise

The franchisee receives the right to distribute the product manufactured by the franchisor. Well-known commodity franchises are, for example, or any other car manufacturer, some brands of clothing and shoes: Incanto, BAON, ALBA.

This type of franchising often does not involve royalties. The franchisee is required to purchase a certain volume of the franchisor's product or range of products. And he provides national advertising campaigns, provides logo and trademark.

Production franchise

The manufacturer grants the right to manufacture and sell goods using its brand and trademark. This type is widespread in the food and beverage industry, for example -.

Another technical point that is important to understand when looking for a suitable idea for investing money. The rights that a franchise agreement provides differ greatly in one case or another.

What are the franchises

Direct Franchise- the franchisor grants the right to open one enterprise in the agreed place. The oldest and most simple form relationships. The disadvantage is this: if the franchisee has the desire and ability to open additional outlets, each time a new contract and new monetary contributions are required. That is, on the example of a clothing store: it is impossible to open another store without coordinating the issue with the parent company and without paying a lump-sum fee.
Multi-franchise- the buyer receives the right and obligation to launch a certain number of production / trading places in a certain territory for a fixed period of time.
Master Franchise similar to the previous paragraph, but has one significant difference: the franchisee receives the right and obligation on its own behalf to sell the franchise in the territory approved by the agreement. The master franchisee becomes the franchisor in his region.

We emphasize once again: in the last two versions of the franchise agreement, a right and an obligation are provided.

If the franchisee does not maintain the contractual pace of development and expansion, this is punishable by: termination of the contract, penalties, transfer of exclusive rights to another businessman, etc.

In addition, there are the following types of franchises:

Free. The franchisee receives the right to use the brand, but his actions are not controlled by the owner of the rights.
Silver. In this case, the company opens a branch, organizes its activities, and only after that sells the right of temporary use.
Golden. Transfer of monopoly rights to conduct business under the brand name of the right holder in a particular region. The buyer of a gold franchise decides for himself how he will use the name and develop the business.
Import-substituting. This scheme is somewhat reminiscent of plagiarism. A businessman works in the country under the name of a well-known company, while not deducting royalties to it. What is it like " Adidas" and " Abibas”, The names are similar and there is nothing to complain about. However, this business has nothing to do with the original brand.

The Civil Code requires that every commercial concession agreement be registered with Rospatent. In this case, the franchisor must first register his trademark and technologies there. Theoretically, it is possible that McDonald's will miss the re-registration period, then any entrepreneur can apply for it.

Almost every industry has successful, proven business practices. We sell franchises of retail stores, beauty salons, fast food restaurants, factories and many others. For convenience, we have compiled some popular brands in a table - a mini-catalogue of franchises.

Notable pizza franchises

	Lump sum		Total investment	Payback period
Dodo Pizza	350 000	3-5%	3 000 000	1 year
Pizza Celentano	400 000 – 800 000	2%	2 000 000	1 year
papa johns	1 000 000	6%	10 000 000	2 years
Domino`s Pizza	2 000 000	7%	15 000 000	2 years

In the pursuit of profit, it is important to strive not only for momentary benefits. Ray Kroc, the founder of the McDonald's network mentioned more than once said:

"If I had a brick every time I said 'quality, service, cleanliness', I think I would cross the Atlantic Ocean."

What should be in the contract

A typical franchise agreement consists of several hundred pages. About, what is a franchise in simple words It's hard to explain, and even harder to do on paper. Therefore, without legal support, a businessman will not be able to figure out the intricacies. For example, the Civil Code contains the following rules:

The duration of the contract does not have to be specified. But if it is, it is necessary to agree on the condition of prolongation.
Only legal entities and individual entrepreneurs have the right to be parties to the contract, individuals this is not available.
It is impossible to conclude a contract in any other form than in writing.
The franchisor is obliged to teach his own technologies not only to the franchisee, but also to his employees.
The franchise buyer must comply with all requirements of the seller to ensure the quality of the product or service.

The contract specifies control technologies, whether mystery shoppers, passing exams or visits of controllers.

How not to fall for the bait

Upon entering the franchisor's website, the visitor blossoms with delight. And the investments are minimal, and the support is comprehensive, they promise bonuses and lure with gifts. It's all hosted on a single page site.

When it comes to signing a contract, a businessman finds a document in front of him on a hundred pages. This is not an exaggeration, this is exactly the size of a standard contract. Moreover, it was drawn up taking into account the interests of the franchisor. How the franchise works and how it protects the franchisee, he must take care of himself. Even if at first glance the offer seems tempting, you should only believe the contract written on paper.

When concluding a contract, it is worth attracting a lawyer, his payment will pay off many times over with subsequent savings. If you make additions to standard contract with McDonald's it will be difficult, then you can easily insist on the cancellation or change of several clauses in an agreement with a lesser-known company.

Questions to ask a franchisor:

When did the franchisor start selling the franchise? If the franchise is young, and the results of the franchisee's activities are not yet clear, this is another reason to think.
Is the business financially successful? Having seen the results of activities over the past three years, you can roughly orient yourself in the prospects of your own business.
How many franchisees have closed? The percentage of successes and failures is not a theory of probability, but specific numbers that give an idea of the chances.
What kind of support is provided? Premises valuation, staff training, payback calculation, advertising and promotion in a new region? What does the franchisee get besides the brand?

The short list of questions can and should be supplemented by questions that arise during the study of the proposal. And most importantly: business is not a statue carved in stone, everything flows and changes.

Pros and cons of a franchise

A business system that has been tested by time and tested more than once in different regions is the undeniable and main advantage of buying a franchise. Fill bumps on your own or copy the experience of a successfully developing and competing company?

Arthur Bartlett, founder Century 21 Real Estate: "The franchise has become the savior of free enterprise, it has given small businesses a chance to survive..."

Yes, the franchising business option does reduce the risk of failure. Not as much as the brochures of interested companies promise, but still. US statistics confirm that 90% of independent business projects fail within the first three years.

Compete with big business individual entrepreneur- difficult task. recognizable brand, special conditions cooperation is an obvious plus that a franchise gives.

“The world does not stand still. We don't deserve to be where we are if we're not ahead of the curve and taking the necessary steps to stay competitive." Fred DeLuca, founder subway.

The franchisor provides well-established business technologies that are constantly being improved: advertising, marketing, administrative support. Lack of knowledge and experience is not a problem - the franchisor provides training for the franchisee.

In many cases, the franchisee receives exclusive territorial rights, a monopoly on the allocated area. Of course, under the brand name of the franchisor. If the brand is successful and recognizable, it will “crush” competitors in the niche.

The sad fact is that some franchises achieve an 80% failure rate while others experience almost no failure.

Before signing an agreement, you need to carefully read the statistics: how many projects are successful, how many have closed. Talking to franchise owners is not the last thing; you don’t need to spare money and time for this item. Openingfranchise may seem in a simple way run your own business. But some factors are not evident, and the idea is so tempting that the potential franchisee steps on the rake of unsuccessful predecessors.

Franchising is not flexible method business. Features of a particular area, which are well seen and understood by the franchisee, are often not obvious to the franchisor. Make changes to the business format, offer additional discounts to customers, choose a product in accordance with the tastes of buyers ( in retail store, for example) is not always possible.

If an agreement is signed that obliges the franchisee to expand the network, the business is obliged to work well and bring profit to the franchisor. Failure to comply with the agreements is a reason for the franchisor to refuse cooperation without compensating the franchisee for any damage.

Instead of output

You can already understand what a franchise is in simple words - this is an agreement that allows one of the parties (the franchisee) to sell a product or service using a trademark, marketing strategies and technology to the second party - the franchisor.

Franchising is a progressive business method that benefits both parties.

In time " catch a jet" and " collect cream» on a new trend - the dream of any entrepreneur. However, here it is better to do the opposite. You need to look for a franchise that has already managed to establish itself. Steady growth, a low percentage of "burned out" franchisees - the only indicators that need to be guided.

Marriott, founder of the hotel chain: “My life experience shows that success is never final. We make decisions on the way to the final result.”

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