Page 115

4 5 6 7 8 9 10

Group of leasing companies «Severnaya Venetsiya» FC "Baltinvest" Ltd. Leasing holding "Petrokonsalt" «Progress-Neva Lizing » LLC Petersburg Leasing Company "PRG-resurs" LLC "PL-lizing " Ltd.

380-66-08, 380-66-09 325-64-83, 325-89-51 334-13-40, 327-31-03 331-90-09, 369-03-00 329-81-82, 326-93-60 324-51-86, 314-38-09 438-28-28, 441-38-16

Franchising Franchising is such an organization of business when the company (the franchisor) transfers the right to sale of the product and services of this company to the independent person or the company (the franchisee). The franchisee undertakes to sell the product or services according to certain laws and rules of business dealing established by the franchisor in advance. In return for following all the rules the franchisee is allowed to use the name of the company, its reputation, the product and services, the marketing technologies, the examination and the methods of support. Thus, following the rules is not a drawback, but, on the contrary, is a good opportunity for the franchisee to make profit and to understand the advantage of the investment. To receive these rights the franchisee makes an initial payment to the franchisorу and then makes monthly payments. It is a kind of rent, because the franchisee never becomes a complete owner of the trade mark, but only has the right to use it trade mark during the period of monthly payments. The sum of these payments is stated in the franchising contract and becomes the subject of negotiations. The franchising package (the complete system of business dealing transferred to the franchisee) allows the corresponding businessman to perform the business successfully even without a previous experience, knowledge or training in the given area. The franchisor is the company which licenses or transfers the right to use the trade mark, the know-how and operational systems. For example, the franchisor creates a successful product or services, such as a special working style of a fast food restaurant. The franchisor studies and develops the business, spends money on promotion of the business, creates good reputation and recognized image (brandnaming). After the company has proved working capacity of its business concept and successful reproducibility of this business, it may start offering the businessmen who want to have a similar success to buy its franchise. The franchisee is the person or the company which buys an opportunity of training and help at creation of the business from the franchisor and makes service payment (royalty) for use of the trade mark, the know-how and systems of work performance of the franchisor. The franchisee pays the expenses for creation of the business by itself. Very often the franchisor gives very favorable discounts for the important deliveries (materials and account means). These discounts always enable the franchisee to buy the products from the franchisor under a lower price, and thus it is cheaper than to develop the business without the franchisor. The franchisee makes an initial payment for the help on creation and opening of the business. The franchisee takes up the duty to make monthly payments for the right to use the trademark and the business system, and also for the support, training and consulting provided by the franchisor. If everything happens according to the plan, the franchisee does a successful business, and its profit surpasses expenses. 122  

1. STATE AND MUNICIPAL AUTHORITIES IN ST. PETERSBURG In St. Petersburg the system of state authorities was formed which has statutory object...  

1. STATE AND MUNICIPAL AUTHORITIES IN ST. PETERSBURG In St. Petersburg the system of state authorities was formed which has statutory object...