Who is a franchisee and franchisor. What is a franchisor and franchisee: how does a franchise business work. Examples of franchising in trade

A franchisor is an entity that grants the right to conduct business under its own brand. The role of the franchise seller can be legal entities or individual entrepreneurs.

In the process of formation, the future franchise seller uses the accumulated experience, bears the cost of advertising campaigns, increases brand awareness (brand name), and also creates a full cycle of commodity and financial relationships between suppliers, the consumer segment and the company itself.

The result of the activities carried out is a high status, stabilization of income and the prospect of further development.

The status of a franchisor is given to those companies that, in the course of their existence, have developed their own business principles, created unique development concepts and are ready to transfer their developments for a one-time or regular remuneration - royalties.

With commercial types of franchising, the right to sell branded goods is also granted.

Franchisor and Franchisee

The acquirer of the rights to create and conduct business under the seller's brand is called a franchisee.

The system of relations between him and the founder of the company is built on cooperation in the main areas of activity.

The role of the rights seller is not limited to granting the right to use the brand. He assumes obligations to assist in the creation of a business.

In many cases, it undertakes to provide legal support to the franchisee at the stage of execution of registration documents.

Specialists from the seller's company provide consultations on the design of the office in the style of the company. In addition, the buyer can count on further business support, which is manifested in training events for the acquirer himself, the management of the newly created division, and also for all personnel.

Both parties in their cooperation adhere to partnership relations. At the same time, the founder, as a partner, provides a more conceptual role, developing and implementing a business strategy, while the franchisee directly conducts business in his region based on the recommendations received, and implements corporate tactics.

Franchisor Companies

The seller, no less than the acquirer of his franchise, is interested in promoting his business. This is manifested in the fact that to provide the maximum number of sales at the highest price at the lowest cost.

The implementation of this strategy is one of the main tasks of a company selling its franchise.

Watch the video: Features and risks in Russian franchising.

Russia and Ukraine is the first step to starting a successful business with an easy and simple start.

Making a decision to buy a franchise is necessary with the professional recommendations of the section:

You can read about the latest news and trends in the franchise business

Each company that acquires a franchise and becomes part of a common brand must develop successfully in order to maintain the image of the company. At the same time, these companies do not belong to the creator of the entire structure, either legally or in fact.

To ensure the full operation of all companies operating under a single brand, the franchisor conducts promotional activities, provides marketing campaigns and works to increase stability.

Franchisee

Franchising, commercial concession, franchise (from fr. franchisor, "to release") - a type of relationship between market entities, when one side ( franchisor) passes to the other side ( franchisee) for a fee ( royalty) the right to a certain type of business, using the developed system of its conduct.

Franchising- developed form of licensing, in which one party ( franchisor) provides the other side ( franchisee) the compensated right to act on one's own behalf (to sell goods), thereby contributing to the expansion of the sales market.

Franchising- a method of replication of successful small businesses.

Synonyms:

See what "Franchisee" is in other dictionaries:

Exist., number of synonyms: 1 buyer (15) ASIS synonym dictionary. V.N. Trishin. 2013 ... Synonym dictionary

Franchisee Encyclopedia of Law

Franchisee- a private or legal person (bank, company, enterprise, etc.) who receives from the franchisor the right to operate under his trademark and undertakes to comply with the prescribed quality standards and business practices. see also… … Terminological dictionary of a librarian on socio-economic topics

Franchisee- see Franchise enterprise ... Big Law Dictionary

franchisee- subsidiaries, businessmen with whom a franchise agreement is concluded ... Dictionary of economic terms

A set of typical structures, methods, technologies and resources of the franchise business that ensure the quality management of the implementation of programs of the 1C: Enterprise system and maintaining it at the proper level. Methodical materials are developed taking into account … Glossary of business terms

Rent- (Rent) The concept of rent, rent of apartments, premises, lease agreement Information about the concept of rent of apartments, premises, drawing up a lease agreement Content Content Rent Object Form Parties to the agreement Agreement Types of rent Economic ... ... Encyclopedia of the investor

McDonald's is one of the most famous franchises in the world. Franchising (English franchise, "license", "privilege") ... Wikipedia

Franchising, commercial concession, franchise (from French franchir, “free”) is a type of relationship between market entities, when one party (franchisor) transfers to another party (franchisee) for a fee (royalty) the right to a certain type of business, ... ... Wikipedia

Books

Franchising - the path to wealth / Franchising: Pathway to Wealth Creation, Stephen Spinelli Jr., Robert M. Rosenberg, Sue Burley / Stephen Spinelli, Robert M. Rosenberg, Sue Birley. 384 pp. In this book, the authors draw on rich personal experience to develop detailed analytical approaches for evaluating any franchise opportunity. These approaches illuminate every aspect…
Automation of the activities of a credit institution on platform 1 C: Enterprise 8, Gobareva Yana Lvovna. The manual discusses the theoretical principles of construction and application of automated banking systems (ABS), their evolution and role in the activities of modern credit institutions. AT…

Aspiring entrepreneurs sometimes do not know or do not fully understand some of the terms that are used in the field of business. Frequently asked questions are related concepts such as franchising and franchise, and the definition of the difference between them.

The growing popularity of such a form of business organization as franchising requires a thorough study of all its features. What are the advantages of this system, are there any disadvantages, and why is it beneficial to use a franchise in the small business sector?

Definition of concepts and their difference

Franchise is translated from French as a benefit and means a certain set of documents and rights to use business elements. These elements can be:

know-how and technology;
business practices;
trademarks, brands, logos;
brands;
business models;
software, etc.

In fact, this is a “rent” of a certain brand or trademark, the acquisition of the right to use all its developments, technologies, reputation for personal benefit in the form of profit. - this is the process of buying a franchise, a certain agreement between the parties. Simply put, a franchise is an object of franchising. The parties to this agreement are the franchisor and the franchisee. The first is the one who sells the franchise, the second is the one who buys it.

The contract also stipulates the payment of the cost of the franchise. It is carried out in two forms:

lump-sum payment - a one-time payment of the cost of the franchise;
royalties - payment of % of the profits received in the process of using the franchise or the payment of a fixed payment for a certain period.

A businessman assumes certain obligations:

produce products in compliance with the requirements for its quality and applied technologies;
carry out activities in a strictly established place according to the planned scheme;
use the franchisor's trademark.

What is a franchise business? An expert in the field gives the answer in a video.

History of occurrence

The history of franchising takes its toll more than a century and a half ago, in 1851 Its founder is the owner of a large company that produces sewing machines - Isaac Singer. It was he who first began to sell to independent firms the right to sell, service and repair their products throughout the United States. Thus, Singer not only distributed his product over a large area without any effort, but also provided after-sales service for it.

The next company is General Motors. Its dealers sold cars only of this company. By making a financial contribution to the business, dealers were interested in maintaining the reputation of General Motors and providing quality service when selling its products.

After a successful start, it quickly spread to other large companies. Producers of popular drinks Coca Cola and Pepsi approached it this way: they produced the syrup at the main plant, then distributed it to the franchisee's factories, where the drink acquired the final form of the product and then entered the stores.

Since the beginning of the 20th century, large manufacturers have begun to create and sell their goods to franchisees for its subsequent sale. The seller provided small sellers with discounts and the opportunity to use the trademark. This way of selling goods exists in modern conditions.

After that (30s of the 20th century), franchising spread to the oil industry, namely: gas stations began to be leased to small local entrepreneurs.

In 1945 businessmen confectioners Baskin and Robbins began to sell some of the new cafes of their rapidly growing chain under the terms of using their trademark to outside entrepreneurs. The McDonald brothers achieved great success in the field of franchising. Their fast food restaurants, which opened in the 50s. of the last century, are still very popular and have more than 30 thousand establishments around the world.

At the moment Franchising is one of the most popular and progressive forms of doing business. and is widely distributed both in the West and in Russia.

Advantages

Running a business through franchising has both positives and negatives. This system is most suitable for aspiring entrepreneurs who are going to start their own business, but are not confident in their abilities. A franchise provides an opportunity to get your own ready-made business, manage it and gain experience in the business field. In addition, there are the following benefits of franchising.

recognition brand. By franchising, you are essentially buying an established business that customers know, recognize, and often love. No need to spend money on marketing, advertising, technological or design development.

Minimum risks. The probability of the collapse of a large company is much less than a new, unknown enterprise.

Feeling support. Franchisers are interested in maintaining and improving the image of their company, and therefore usually provide assistance to subsidiaries. Consultations, advice on doing business, training in the right management decisions - this is not the whole list of information services that a franchisee can receive.

You can choose industry of interest to you and study its performance indicators before starting your own business. Before you spend your money, you will know exactly how soon the investment will pay off and how much the products will be in demand in the market.

Low level of competition. Each franchisee receives its own territory in which to conduct and develop business. There will definitely not be competitors who could have the same franchise in this territory.

disadvantages

You cannot use your ideas or innovations to run a business and must follow a clearly prescribed pattern. Such a business destroys fresh ideas and does not allow the enterprise to develop in a new direction.

Enough high price franchises. To buy it, you will need a lot of money, and it is not known when they will pay off.

Inflexible selection system suppliers. Often, franchisees are forced to purchase raw materials and materials from those suppliers appointed by the franchisor. The terms of such transactions are not always favorable.

Narrow scope of activity. By purchasing a franchise and everything that comes with it (brand, trademark, etc.), you also undertake to conduct your business in the direction indicated by the franchisor, without the right to change anything.

For failure to comply with such stringent requirements, substantial fines or even deprivation of the franchise are provided.

The risks that are the parent company may still go bankrupt. Or draw up a franchise agreement in such a way that you will not receive any benefit from this transaction. So, it is necessary to approach the conclusion of the contract especially carefully, involve experienced and competent lawyers in the case and carefully study the conditions.

Franchise agreement - what is it?

In Russian law, franchising is the name of the commercial concession. This term in its meaning fully corresponds to franchising and their definitions are identical. This one consists of several items:

The subject of the contract is, in fact, those rights and benefits that are sold to the franchisor.
Parties to the agreement (copyright holder - business owner, user - franchise buyer).
The form of the contract (necessarily written, registration with the relevant service is also required).
Remuneration (royalty) - its amount and method of deduction.
Rights and obligations of the parties (both the copyright holder and the user).
Restrictions on the rights of the parties.
Contract time.
Amendment of the contract (in which cases it is possible to change its terms).
Termination of the contract (at the end of the term or at the request of one of the parties).
Responsibility (forfeits and fines for violation of the terms of the contract).

Franchising Examples

For better clarity, we can consider examples of successful sale of franchises of large companies in certain industries.

One of the most prominent representatives of franchising on a global level is the company Ray Kroc's idea to sell company franchises in all cities of America has led to the fact that at the moment the restaurant chain covers more than 30,000 establishments, and its owner has become a billionaire. Now almost every country in the world has at least one McDonald's restaurant, and those who wish to acquire a franchise are subject to rather high requirements.

Another famous example of success is the franchising company, one of McDonald's main competitors. She uses the same scheme - selling the rights to the brand, products, trademark and providing full instructions for doing business.

Among automobile companies, the brightest representatives are the mentioned General Motors and Ford who use a franchised dealer system to distribute their vehicles to customers.

The clothing chain does not invest in advertising or marketing, but in opening new points of sale. Thanks to this, the network has 1.5 thousand stores and the brand is recognizable in many countries of the world.

Franchising, despite having certain disadvantages, is an effective form of business organization, especially at the initial level, for entrepreneurs without much work experience or innovative schemes. Such a system allows you to reduce risks, get a recognizable brand and save a lot of effort and money on business promotion.

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Many people are constantly confused in terms.

For example, half of the population of Russia does not know the difference between a franchise and a franchise.

Moreover, they may not even suspect who it is. H

To remedy this lack of knowledge, let's draw the full marks of distinction between these terms.

How is a franchise different from franchising?

What is a franchisor and franchising? First of all, let's define the term "franchise". She is called conclusion of an agreement between the company / brand and entrepreneur for the purpose of further mutually beneficial cooperation. The investor gets the right to use the promoted trademark in his own region and receives a profit for this.

The company, in turn, expands its network and also receives interest from this through lump-sum contributions or royalties (this is the name of the regular fee for the opportunity to use the trademark. The amount is determined by the franchisor. Many companies have no royalties at all.).

What then is franchising?

Inexperienced businessmen often don't see the difference, and identify this concept with a franchise. But this is fundamentally wrong.

Franchising is the process of acquiring a franchise, as well as the moment of conclusion of an agreement between both parties. Successful examples of this phenomenon include McDonald's, SubWay or Ford.

Finally, who is a franchisor? This is a company that sells certain services or products.

To be called such a definition, brand management needs to offer cooperation to businessmen and investors.

What is it? The entrepreneur enters into an agreement with the company for the opportunity to use its trademark on the proposed terms.

He opens a point in his city, decorated in a corporate style. The company is committed to helping in every possible way. After that, the investor will be called a franchisee.

People who at least once thought about starting their own business probably came up with questions: what to do? How much money will have to be invested? How much profit can you get? The good news is that these and many other questions are not necessary when it comes to franchising.

In short, franchising (translated from English as “license”) is an opportunity to open your own business, offering products from a well-known company. At the same time, the entrepreneur will be assisted in finding premises, shipping goods, recruiting personnel, developing an advertising campaign and on a number of other issues. Of course, not for free.

Franchise system

Before promoting a company on the market, its owner must establish a system, work out all business processes and prove the profitability of the idea. The franchisor must have a "reference" enterprise, which will be "cloned" according to a certain system. The franchise buyer will be able to protect himself from the risks of a novice entrepreneur.

The license is paid in two stages:

A one-time payment (lump sum) is usually 5-10% of the investment amount. Some companies don't have it at all. To be more precise, the lessor hides it behind the requirement to buy goods or equipment from them.
The franchise provides for ongoing support from the main company. It can be a payment for an advertising project. Business consulting, business monitoring, etc. These services are paid in the form of royalties - regular monthly payments. They can be fixed or tied to income volumes. Royalty-free franchises also exist. But in this case, the lease changes to the requirement to carry out regular purchases of goods.

A franchise is not a job. The business remains with the buyer. The franchisor can only give advice and recommendations on its management.

Who are franchisors

Companies that provide entrepreneurs with the right to distribute their products in a certain territory according to clear rules are called franchisors. Usually these are companies with well-known brands that have already proven themselves in the country and plan to enter the foreign market. Therefore, the main requirement that applies to franchise buyers is the distribution of products abroad.

Before entering a foreign market, you should study its conjuncture in detail. But even the longest research can be less effective than the approach of local entrepreneurs, who can take into account the mental characteristics of the region.

Franchisors provide all kinds of assistance to license buyers. They are interested not only in the profit of the foreign branch. In the case of poor quality work, a negative image of the brand as a whole can develop.

Before choosing a franchisor, you need to adequately assess your financial capabilities. Very often, the opinion of the parties to the transaction on the same issues differs. Some franchisors even control the color and tone standard of furniture, office wear, and promotional items. Other companies don't take these details as seriously, but are critical of the quality of their customer experience. In other words, when concluding a contract for the distribution of a brand, you will have to play by the rules of its owner. Individual business issues can be resolved verbally. But the last word remains with the franchisor.

What is a franchise agreement

A franchise agreement is a transaction under which the franchisor grants the “user” (franchisee) the rights to manufacture, sell certain goods and provide services. The franchisor remains the owner of the brand. The subject of the transaction is the right to use the object of intellectual property, business reputation and experience. The contract must be registered by the authority in which the franchisor was registered.

According to the legislation in force in Russia, if the franchisor does not have a trademark, then such an agreement cannot be executed in Rospatent. In this case, the transaction can be formalized by a license agreement. For example, Disney grants the rights to display and use its characters. In theory, a franchise can also be acquired by an individual, but such an agreement cannot be registered with Rospatent either. Transactions can be executed only by individual entrepreneurs and commercial organizations.

Before concluding a deal, the franchisee is advised to check whether the declared rights belong to the franchisor. Unfortunately, there have been many cases of distribution of other people's rights. The courts do not recognize such transactions as fraud, referring to the inattention of the franchisee. All documents are publicly available on the Rospatent website. It is desirable to include references to these documents in the contract.

Under the franchise agreement, the franchisor undertakes to provide the "user" with technical documentation, to provide accurate information on the exercise of rights. Franchise buyers are often mistaken in thinking that immediately after the conclusion of the contract they will receive instant profit. The essence of the transaction is to provide a set of rights without the implementation of active actions by the second party. Therefore, the additional obligations of the franchisor in the form of payment for an advertising company, assistance in the purchase of goods, staff training, provision of advice on business processes, etc. should be described in detail in the contract, establishing the liability of the copyright holder for failure to provide assistance.

Reverse franchising

As part of this transaction, the franchisor transfers the rights to conduct business under its trademark, but the fees for the activity are paid to the user. This scheme is used only when trading in consumer goods. The franchisor gets the opportunity to open a grocery store, delivers his goods there. He himself undertakes to work out the mechanism for selling products and, based on the results of the quarterly work, pays the agent a certain remuneration.

Such transactions are more profitable for a novice entrepreneur, as they help to reduce the cost of promoting their own business. The franchise buyer receives the same benefits as in a regular deal. But not many are aware of alternative options for the implementation of the franchise.

Examples of franchising in trade

McDonald's is one of the most famous franchises in the world. The method of transferring rights through a license has ensured McDonald's worldwide success. Today in the US, more than 80% of the restaurants of this chain are franchises, in Europe - 50%. In Moscow, the first McDonald's opened at the station. m. "Pushkinskaya" in 1990, and today it is the most visited catering in the world. There is no end to those who want to try American hamburgers and cheeseburgers, and the visitors themselves call the institution a restaurant. Perhaps that is why this franchise is the most expensive in Russia. The initial capital for opening a restaurant should be 1 million dollars, and monthly royalties - from 12.5%.

A prime example is the Coca-Cola brand. The Coca-Cola company developed its drink concentrates back in 1899. After the successful launch of products in the domestic market, marketers began to think over options for selling the drink in all countries of the world. The most successful scheme for this was franchising. The right holder keeps secret the technology of making drinks, supplying their customers with licenses for further distribution under the company's brand. At the same time, the color, shape, size of the bottle and the label are clearly regulated by the copyright holder. Today there are about 200 bottlers in the world. In Russia, the brand is distributed by a company with partially Greek capital Coca-Cola HBC Eurasia. It ranks second in the world in terms of production volumes. Coca-Cola sells licenses to companies that have already established themselves in the market. At the same time, they are prohibited from supplying products to regions that already have their own brand manufacturer.

Trade Franchising implies the sale of goods according to an already established sales methodology. License buyers use the brand in the store name and receive support in store design, staff training, customer service and marketing. It is easier to standardize work than to work out a wide range of operations from scratch. The success of this model lies in the fact that in European markets trade develops as long as brand value increases, a well-selected product range is available and new distribution schemes are used.

Service franchising is an analogue of a commodity, but applies to services and procedures. The franchisee draws up a point in a certain way, receives support in staff training, service methodology and access to data, special software. To standardize the work of service points, you need to master the details of the provision of the service. The success of scheme development depends on the fashion for services. For fast food restaurants to emerge, people must start eating out. Russians are less likely to use standard Western services: they practically do not visit laundries, and hairdressers for pets are not in demand at all.

Manufacturing franchise provides for the implementation of rights on the technology of manufacturing products. The franchisee receives the right to manufacture high quality products, attach a promoted trademark to them and sell them on their territory. An example of such a scheme is the Masterfiber company, which manufactures rubber crumb coatings. It sells a franchise for its products in all regions of the Russian Federation and in the CIS countries. A manufacturing franchise is often confused with a manufacturing license. The difference lies in the fact that within the framework of a franchise, know-how is realized not only for manufacturing, but also for a sales and marketing scheme.

Mixed franchise is a combination of the three previous types. The right holder manufactures products, for example, cosmetics, and the franchisee sells it and simultaneously uses it in its own network of beauty parlors.

In the business format scheme, the franchisee gets the right not only to implement and access to the sales methodology, he buys the whole concept of doing business: from the design of the outlet to recommendations for product promotion.

Who is a franchisee, how to become one

Companies that buy licenses of various brands are called franchisees. Before you start spreading a brand, you need to adequately assess your strengths.

1) The first step is to decide on an idea. Franchising requires large investments and intensive work in the early stages of brand promotion in the region. You should choose a field of activity that interests you. It is better for people who follow fashion to buy a franchise for a clothing store, rather than distribute office equipment.

3) The next step is to select a vendor. At the same time, the presence of a wide network of branches, the period of work on the market, and the support from the right holder are assessed. Serious companies help franchisees develop a business plan and evaluate the effectiveness of the project.

4) After weighing all the risks, you can sign an agreement with the franchisor.

Advantages of doing business according to this model for the franchisor:

Rapid expansion of business in different countries at minimal cost.
All business risks are borne by the buyers of the license.
Increasing brand awareness.
Getting extra income.

At the same time, franchising has a number of disadvantages:

The franchisor discloses confidential information on the distribution of the brand, which threatens to disclose trade secrets.
There is a need for unified accounting programs.
The conditions for using the franchise must be constantly monitored so as not to lose the image.

The license buyer receives the following benefits:

Purchase of a ready-made business model.
Distribution of a popular brand reduces advertising costs.
Getting help in the form of advice on all issues from the copyright holder, etc.

Among the shortcomings are the following:

Loss of freedom of action in the sale of goods.
Large initial investment.
Dependency on the copyright holder.

How to open a franchise business

Stage 1. Company valuation

The duration of a company's existence in the market is of great importance. In order to promote the company's brand well, it is not enough to have one point, which consistently makes a profit for 2-3 years. You also need to understand how the company differs from others in the market: product, specific design, or quality of customer service. The more unique the idea, the more difficult it will be to build a system.

Stage 2. Formation of a package of services

Under franchising agreements, in addition to the right to sell goods, the following can also be transferred:

1. Network logo.
2. Professional knowledge.
3. Services for the training of personnel with the principles of customer service and organization of business processes.

Stage 3. Calculation of the payback period

Stage 4. Search for franchisors

If, according to preliminary calculations, the project turns out to be profitable, then you should start looking for potential customers.

franchise store

The first step is to study the markets in which the proposed products will not be prohibited by law. Then you need to draw up requirements for the design of the store, the use of the trademark, the volume of purchases, etc. In the case of selling a franchise for a store, the right holder can control all the nuances: from the area of \u200b\u200bthe room, the color of the walls to the location of the racks, the equipment used. After agreeing on all the nuances, you should draw up, register the transaction and prepare for the opening of the store. In practice, becoming a partner of a well-known brand is difficult. Eminent companies make a tough selection of applicants. Open a premium brand store in a city of 200,000 people. will not work.

franchise company

The main advantage of business format franchising is the unity of management of all processes in the enterprise. The franchisor dictates the rules for conducting all business processes. Such transactions must be registered in the country of the right holder. But if the subject of the transaction is a license to use copyright, then in Russia such a contract cannot be registered. If the terms of the contract do not contradict local legislation, then you can start negotiations with the buyer, sign the contract and prepare for a complete “cloning” of a successful business model.

franchise network

The Pyaterochka network is positioned on the market as a place for quick shopping. The assortment includes goods of daily demand. Stores are located in densely populated neighborhoods, so the pricing policy is focused on customers with low incomes.

To open such a franchise store, you must:

Pick up a place near public transport stops;
The area of the premises should be 400-1100 sq.m.;
The main hall should occupy 300-800 sq.m.;
Organize 3 telephone lines;
Provide conditions for the entrance of freight transport;
Make a lump-sum contribution of 1.5 million rubles.

In developed markets, franchising has become a popular distribution channel. It is found in industries ranging from food service chains to real estate services. In some countries, the level of disclosure is regulated at the legislative level.

In the domestic market, a single franchise is more often used. With its help, the right holder gains control over retail outlets in the domestic market. However, it is difficult to control the international network from a single center. Therefore, in international practice, an agreement is often concluded on the opening of a network of branches by an agent in the territory assigned to him. The franchisor reduces the cost of doing business. It trains only the agent, who then builds a network in his region according to the studied algorithm.

Franchising under Russian law: commercial concession agreement

All franchising transactions are regulated by Art. 54 of the Civil Code, which is called "commercial assignment". However, neither in it nor in other regulations there is such a thing as "franchising". In any case, agreements that deal with the transfer of rights to use a trademark will be considered by Russian courts in accordance with the provisions of the Civil Code, even if the word “franchising” does not appear in the title of the document. Therefore, before concluding an agreement, you should check the conditions for granting rights with those prescribed in the Civil Code, and try to correct them in the right direction.

Entrepreneurs often consider the process of signing a contract a formality. Therefore, they pay for the services of the franchisor before registering the document with Rospatent. Such actions can be used by both competitors and the copyright holder. The latter will be able to go to court, declaring the nullity of the contract. All obligations of the parties will be cancelled. The franchise buyer will only be able to recover the listed license fees. If the transaction was concluded after 09/01/2013, then the franchisor will not be able to challenge it if he received at least one payment under the contract, and competitors will have to prove the fact of violation of their rights in court.

A lot of controversy is caused by the territory and term of use of rights. Experts recommend tying the methods of their implementation to remuneration. It is also very important to describe in detail in the contract the procedure for terminating it. If the business is not profitable, then you need to painlessly exit the transaction.

Belfranchising

To date, in Belarus, more than 30 companies offer everyone to purchase a franchise.

It is more convenient to work with them in the domestic market, because:

The cost of a license is much lower than that of European companies;
The buyer receives an already well-known brand.
The franchisee and the right holder work in the same social and market conditions.
Most often, the owner of the brand pays for advertising on his own, looks for suppliers, and sometimes conducts training at his own expense.

If the buyer is not interested in acquiring a specific brand, but in organizing work according to an established scheme, then it is better to purchase a franchise. The biggest demand in Belarus is for retail stores and catering establishments.

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