Let's talk about the essence of franchising or franchising. The official name is the commercial concession agreement. What is it and what is the meaning of the answer in today's post.Franchising is logical and very simple.Imagine a McDonald's!Surely you've gone there at least once in your life and ordered something, at least a milkshake or ice cream.McDonald's is so widespread in the world only because it sells franchises.How did it happen?In the beginning, of course, it was an ordinary eatery where you could order a sandwich and some kind of drink, like coffee or cola, for a little money.But the smart and resourceful owner, seeing the popularity of his restaurant, decided to slightly change the business model and sell franchises. To do this, it was decided to standardize every detail of the sandwich preparation and customer service process.Literally everything from the technology of cooking cutlets and mayonnaise to the cooking time of French fries in butter, the number of pieces of pickled cucumbers in sandwiches and ice cubes in cola has been standardized and described.What did it do?This allowed us to create a scalable system. This meant that any legal entity that received this documentation and the appropriate equipment would be able to build its own McDonald's almost immediately.Of course, the description of technological and business processes in a franchise is not the main thing.The main thing is that along with the production technology, you get the right to use the McDonald's service mark (brand name).That's the whole point.McDonald's is an internationally popular brand, almost everyone knows it and almost everywhere, they are used to the fact that the food in it tastes the same, regardless of whether you bought it in Moscow or Beijing.At the same time, you manage a particular restaurant yourself, you serve customers using the technology transferred to you (from which you have no right to deviate), McDonald's itself supplies customers to you and it also bears the costs of advertising and promoting its brand.Naturally, you have to really pay for such pleasure. On the other hand, you get to manage a ready-made and promoted business.In total, a franchise is essentially a "lease" (temporary use) of the following facilities:- someone else's trademark,- production technology,- service standards,- and other elements that would allow you to officially copy the business system of the transferring party, but on a smaller scale.Such relations are formalized by a commercial concession agreement or a franchise agreement.