Now many foreign words are increasingly part of our lexicon.One of them - the franchise.Just a few years ago with the term we worked only "advanced" business, but now it is faced with any entrepreneur who wants to improve their welfare.
the question "What is a franchise?" Can be answered, it is - the term economics, which can mean:
- part of the losses person insuring property;
- right to the franchise;
- creation on a franchise basis.
In the first part of the definition of a franchise means a loss in the face of property insurance, which is not refundable by the insurance company under the terms of the agreement.
In the second definition, the term explains the right to establish enterprises, to trade the products of the partner.
third value - creating businesses on the basis of franchising.For example, as are shops of famous brands of cosmetics and clothing.
So, what is a franchise?In simple words, it is a kind of rent a brand or product, and the use in the activity of existing business.The founder of the franchise is considered the "McDonalds".Indeed, thanks to a broad sell its franchises worldwide McDonald brothers to fast food have become quite popular.
franchise - what it is, almost everyone understands when you contact the insurance company.The insurer says the franchise as the release of his company from the obligation to compensation for damages not exceeding the prescribed amount.This varies the value of conditional and unconditional.
What is a franchise in the insurance, you can very clearly show an example.So, people shape the new car insurance.Installed amount of 5 thousand dollars.Then, when you select the insurance system "hijacking + damage" insurer will need to pay 400 dollars.The insurance company offers to do it with a deductible of $ 100, and the person does not pay for the insurance $ 400, and 380. At the time of registration of insurance, this option is definitely profitable.But when an insurance case has its own nuances.
For example, there were small scratches on the machine or broken headlight.Since the amount of damage does not exceed the cost of the deductible ($ 100), the repairs made by the owner at his own expense.With minor breakdowns, perhaps easier to have a certain franchise.Thus, a person calls in on the garage, where he was for a short period of time, remove all the minor faults.Otherwise, he would have had a long time to share relevant transactions with the insurance company until they pay damages in the amount of the agreed amount.
If the loss amounted to $ 120, the insurance company will reimburse only 20 of them.But when you consider the number of necessary papers for $ 100, many car owners because of such a small amount does not communicate with the insurer and take all the costs.
In the event of more serious damage situation is somewhat different.For refurbished car auto repair invoice to the insurance company, and that, in turn, pays the bill for 100 dollars less.The missing money is to make the owner of the car.In this situation the only winners are the insurance company.
above-described franchise characterized as unconditional.This type is the most common, and it was his offer insurers.
What is a franchise, it shows the conventional method of calculation.So, if the losses on insured event did not exceed its cost, the cost borne by the owner of the car.If the amount of damage over the franchise (even slightly), the insurance company will reimburse you in full.This type is more advantageous for the insured, but insurance companies offer it is extremely rare.
Thus, in this article we have a definition of "what is a franchise", it lists the types and methods of application.
