What is franchising:

Franchising is a method of distributing products or services. At least two levels of people are involved in the franchise system: (1) the franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee who pays a royalty and an initial fee for the right to do business under the franchisor's name and system.

Why Franchising?

The advantageous of a new entrepreneur to obtain via franchising can be briefly stated as follows.

a) The possibility of obtaining various services and products of the franchisor under a brand name via one channel.

b) The activity area of responsibility with determined borders.

c) Research and development for the services and equipment in question by the franchisor.

d) Comprehensive technical, sales, marketing and business administration training before official opening.

e) International sales and promotion support.

f)  Continuous technical and training support during the franchising contract.

g) Minimum risk of opening up a new business.

Who is Franchisor?

"Franchisor" is the party providing products or services together with the know-how, business system and trade mark to consumers through a Franchise Network.

Who is Franchisee?

“Franchisee” is an entrepreneur or corporate who conducts business under the Franchisor's trade name and system obeying rules and conditions stipulated by Franchisor in a designated area of responsibility.

What is Franchising Fee?

It is a fee paid by Franchisee against transfer of know-how, training, systems and usage right of trade mark in the designated area of responsibility during the contract period.

What is Royalty:

It is monthly fee paid by Franchisee as certain percentage of turnover of Franchisee, generally on monthly basis, against technical, logistics, RD, IT and marketing supports of Franchisor as stated in Franchise Contract.