Franchising: what is it, probably did not know Spanish Queen

Today, the business press has flashed the concept of "franchising".What it is?This term comes from the English word Ā«franchiseĀ», which means "privilege" or "license".Historians believe that this scheme of trade relations invented in the fifteenth century, the Queen of Spain, who gave Columbus the right to sell them in the open lands (1492).The classical form of franchising appeared somewhat later, in the same America.

first contract Franchise

So franchising.What is it was in the 19th century, when it was in its infancy?While actively developing the production of sewing machines, and manufacturers are competing with each other without getting tangible benefits.Then the founder of the company "Singer" - Isaac Singer - organized the "Association of sewing machines", in which production companies have acquired the right to manufacture products and technology under the brand name "Singer".This gave the company a significant improvement in market position.

Nowadays, you can start your own business using the franchise.What is it for the process?By purchasing a franchise, the entrepreneur gets tried out the scheme, for example, trade, marketing materials and consulting support.For this he pays a developer of business ideas monthly fee.Ieat its core franchise is a trade business technology in retail.

revenues and the tax base

How else can we interpret the concept of "franchising"?What is it in terms of taxation?Experts believe that the person issuing the franchise (the franchisor), the proceeds of the contract of this kind belong to the profit from ordinary activities (Article 249 of the Tax Code).In addition to the so-called "lump sum payment" (for the acquisition of the franchise) and royalties (periodic payments), the franchisor can make a profit in the implementation of its franchisees (franchise buyer) semi-finished products with the trade mark-up, as well as provide staff training services, if the contract so provides.

situation in Russia

Franchising in Russia at the moment is not very developed, ie. To. Its own products that can be offered for this operation, a little bit.For example, among the proposed franchises you can also find on Trade concrete products under certain brand, the organization of show of soap bubbles, trade tools for repair and construction, provision of services in the field of fitness or mobile car washes, educational programs.The volume of investment required ranges from $ 5,000 to more than one hundred thousand units of the US currency.The main disadvantages of this method is that it does not always pay on time franchise fee, and can provide services or produce products that do not meet the quality that entails an increase in reputational risk for the franchisor.

Franchising in Moscow, represented mainly by foreign companies from the scope of supply.For example, in 1993 in the capital it was sold the first franchise "Baskin Robbins", and now this brand there are dozens of companies.Experts believe that such schemes sufficiently great future, so some major Russian players ("1C", "Crossroads", etc.) Offer to potential partners such cooperation.