Što je franšiza?

Franchise is a privilege or the right given to the individual or the group that allows them to carry out a specific kind of commercial activity. The legal concept of franchise can be first found in the middle age when a knives and/or abbots could get a right to run a portion of the lord’s land. The fairs and the markets were also organized s franchises as well as many other commercial activities.

Today the term „franchise agreement“ is used to describe services provided by franchisor the payment to the franchisor and the terms of termination of the franchise. Franchise is a model of business expansion, distribution of goods and services, and the opportunity to run business under the recognized name: brand.

Franchise is when the company (franchisor) gives an individual or a group (franchisee) a right to use its brand and it’s business model according to a franchise agreement. The franchisor provides a franchisee with a support and also in some cases have a certain control over the franchisees business. In return franchisee pays to the franchisor an entrance fee and the royalty for the use of its brand and the business model.

Franchise is the legal and commercial relationship between the owner of the trademark and the individual or the group that seeks the right to use that identification in doing business. Franchise is the management model between those two interested sides.

There are numerous examples of private franchises. The franchisor sells the franchises to the sales people, giving them the right to sell their products in particular territories.  In the recent years the fastest growing segment of franchise business is in service businesses. Franchises are created to offer services such as: accounting, printing, coping, direct mailing, house cleaning, computer sales and services, etc.