2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Today, the concept of "franchising" periodically flashes in the business press. What it is? This term comes from the English word "franchise", which means "privilege" or "license". Historians believe that this scheme of trade relations was invented in the fifteenth century by the Queen of Spain, who gave Columbus the right to trade in the lands he discovered (1492). The classic form of franchising appeared a little later, in the same America.
First franchise contract
So, franchising. What was it like in the 19th century, when it was just emerging? At that time, the production of sewing machines was actively developing, and manufacturers competed with each other without receiving tangible benefits. Then the founder of the Singer company - Isaac Singer - organized the "Association of Sewing Machines", within which manufacturing companies received the right to produce products according to the technology and under the Singer brand. This gave the firm a significant improvement in its market position.
Today you can start your own business using franchising. What is this process? By purchasing a franchise, an entrepreneur receives a proven scheme, for example, trade, advertisingmaterials and consulting support. For this, he pays the developer of the business idea a monthly commission. Those. at its core, franchising is the retail sale of business technology.
Income and basic taxation
How else can you interpret the concept of "franchising"? What is it in terms of taxation? Experts believe that for a person issuing a franchise (a franchisor), income from a contract of this kind relates to profit from an ordinary type of activity (Article 249 of the Tax Code of the Russian Federation). In addition to the so-called "lump payment" (for the purchase of a franchise) and roy alties (periodic payments), the franchisor can make a profit when selling semi-finished products with a trade margin to his franchisee (franchise buyer), as well as provide staff training services, if this is provided for by the contract.
The situation in Russia
Franchising in Russia is currently not very developed, because there are few own products that can be offered for this operation. For example, among the proposed franchises, you can find offers for the sale of concrete products under a certain brand, the organization of a soap bubble show, the sale of tools for repair and construction, the provision of services in the field of fitness or in the field of mobile washes, and the implementation of educational programs. The amount of required investment ranges from $5,000 to a hundred or more thousand units of American currency. The main disadvantages of this technique are thatfranchisees do not always pay remuneration on time, and they can also provide services or produce products that do not match in quality, which entails an increase in reputational risks for the franchisor.
Franchising in Moscow is represented mainly by foreign food companies. For example, in 1993, the first Baskin Robbins franchise was sold in the capital, and today there are dozens of companies under this brand. Experts believe that such schemes have a fairly large future, so some major Russian players (1C, Perekrestok, etc.) offer such cooperation to potential partners.
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