Basic notions:
Franchising is a form of business-partnership which predetermines that one company (the fanchiser) is to sign away to another company or a person (the franchisee) to work its own trade mark, marketing and technological knowledge and different know-how. The right for trade mark work and knowledge use is governed by the contract of commercial concession (a franchise contract).

Franchising makes it possible for an entrepreneur to earn money by obtaining ready business-technologies. On the other hand franchising allows a businessman developing their stable and profitable business investing minimum by selling to other businessmen the right for use of trade marks and unique knowledge.

When concluding the contract for commercial concession, the franchisee either receives the right for trade mark work and knowledge use, including products, technology and a concept of running a business, or assumes an obligation to obey strict rules of running a business which the franchiser settles.

While opening one’s franchising business a businessman the franchisee is to reduce investment risks many time implementing a well-known trade mark and multiple probed and well-defined technology of running a business. And the amount of money which a businessman pays for the right to use brand and the technologies is much smaller than the amount necessary to create and develop business “from the point zero”.

Read about franchising operating conditions of TM Insait.