What is a lump sum payment. Lump sum

Franchises are a popular way to start your own business today. All it takes is a cash investment. And in return, you get a ready-made scheme of doing business and already existing brand. This is where the questions begin. Each franchisor assigns a lump-sum fee and royalties, but many do not understand what it is. It is the question - Lump-sum contribution: What is it and our article will be devoted to.

Concept definition

The very type of doing business - franchising, originated in America. But it is noteworthy that in Russia the term lump sum came from German language. At the origins of the expression die Pauschale is der Bausch, which means "A thick piece of something." So what is a lump sum? In simple words This is payment for using the company's brand. For example, you decide to cooperate with McDonald's. From them you get the right to use the brand, recipe, thematic design.

And in return, you pay for this right once in the amount established by the company. However, in Russian legislation you will not find the concept of a lump-sum fee, and nothing at all about a franchise. Only one document is registered in the civil code - a commercial concession agreement. It is this document that regulates the relationship between the owner and the partner, and it prescribes the amount of payments.

Franchising in the states is developing by leaps and bounds and now occupies a huge percentage of the entire share of the business. Foreign companies have long understood the charm of such cooperation for brand development in other countries.

Therefore, among the franchises, companies from the foreign market predominate. But even in Russia, they realized that franchises are a gold mine for owners. Chains are developing throughout Russia, and some Russian brands have even entered the international market. There are franchises without a lump sum. This option is more often possible if the manufacturer is also a supplier of products. In this case, you buy goods, and whether you sell or not is no longer important for the owner. Not to say that in this case the risk is great, but you need to understand the market well in order to know whether products are in demand in your city or not. And check out the prices. If prices are much higher than average, it will be quite difficult to sell everything. And you should prepare in advance for the fact that the owner, by and large, will not care about you. His the main objective- sell as much as possible.

What determines the amount of the lump-sum contribution

The lump-sum fee can go into the pocket of the franchisor, or, conversely, into the business. This money goes to pay various bills:

• The new enterprise must be registered;
• Then comes the search and rental of premises;
• Company managers train your new staff.

All this requires money, which you provide and get rid of many headaches that fall on the shoulders of entrepreneurs starting their own business from scratch. Thus, you pay not only for rent, but also for advice on doing business.

But here you should be especially careful. These items may or may not be included in the lump sum. Often the lump sum goes just to rent the brand. And for renting premises, hiring and training staff and other costs, more investments will be needed.

This option does not indicate the greed of the owner. Most franchisors do just that. Therefore, you need to discuss all aspects in detail, so that later you are not surprised that more money is required from you. Each owner manages the contribution in his own way. Therefore, there is no single tariff. But it is not difficult to guess that the larger the enterprise, the more expensive the contribution will be.

Cooperation with an expensive brand can cost several tens of millions of rubles. But small businesses are cheaper. In addition, sometimes you have to prove that you are a worthy candidate for acquiring a franchise. The amount of the contribution depends on the requirements. For example, companies such as McDonald's, KFS and other catering giants have very strict requirements for the premises. It must be equipped with everything necessary and, in addition, be with a certain percentage of passability.
And the cost of renting such premises is many times higher. The amount of the contribution is negotiated at the stage of concluding the contract. You may disagree with the terms and look for other offers or pay for it. Some franchisors, for the convenience of future partners, divide the fee into several parts or include it in royalties. But basically it concerns only medium-sized businesses.

Royalty

If you are wondering: what is a lump sum and royalties, then you need to clearly define for yourself what is the difference between the two terms. We've dealt with the lump sum. Let's briefly talk about royalties. Royalty is the percentage paid to the franchisor for the use of trademark. Payments are made on a regular basis. The percentage and terms of payments are set by the owner.
It was said above that a lump-sum fee can be included in royalties. How it works? The entrepreneur does not immediately pay the initial contribution established by the owner. The amount is broken down into pieces and is included in the royalty. When the installment debt is paid, the royalty returns to the regular interest rate. The payment period is set on an individual basis.

Payment of the fee

It is not always the entrepreneur who invests his own funds in the business. Often take loans for the organization. But here it is worth knowing that not all franchisors will work with you in this case.

What options can be:

• The lump-sum fee must be paid immediately at your own expense;
• The owner allows you to pay part of the fee with borrowed funds, and part with your own;
• You can give as payment the full amount of borrowed funds;
• The lump-sum fee is broken down and must be paid along with royalties.

Tax

The lump sum is registered in accounting records and is subject to taxation The procedure for displaying the costs of a lump-sum contribution is prescribed in PBU 14/2007.

There are two types of franchises:

1. When an enterprise lives only at the expense of a franchise;
2. Or when selling a franchise is just a sideline.

In the first option, the income received from the franchisee is displayed as "sales income". And in the second variant, receipts appear as "operating income". All income from the lump-sum contribution is divided into equal parts and distributed for the duration of the contract. As for VAT. Such type of cooperation as the transfer of rights to use the brand appears as the "rendering of services".

Is it worth it

It is quite difficult for a novice entrepreneur to objectively assess how much money a brand is actually worth. Even the eminence of the company does not mean that everything will go like clockwork. And who wants to pay fabulous sums for nothing? How do you determine if a franchise is worth the money? First of all, it is worth consulting with independent lawyers.

Never sign a contract without reading it completely. Discuss with the owner any points that cause you doubts. If you feel that the owner is obscure, then it is better not to mess with him at all.

Remember that his business depends on your business. Therefore, your development is beneficial to him. If he doesn’t care, then most likely they will just shake off your money and will not provide any support. Once the contract is signed, there is no going back. In the event that you somehow do not satisfy the requirements of the owner, the agreement will simply be terminated with you. The system works in such a way that the franchisor can demand anything from you (within the framework of the contract, of course). But you can hardly prove him wrong.

How else can you find out more about the franchise? Read people's reviews online. Of course, custom-made options also go, but you can also find good reviews. It does not happen that in business there are only negative or positive sides. Trust those who mention all aspects of running a franchise, both positive and negative.

Try to contact the real franchise owner of your chosen brand. A person is already working on this principle and knows the pitfalls. You can run into a dishonest person, so it's better to talk with several owners.
Spend own analyzes market in your area. The franchisor's specialists are undoubtedly experienced. But this does not mean that you should completely rely on their opinion. You should also have your own research and development plans in reserve.

Termination of an agreement

Proving that the owner does not comply with the terms of the agreement is not so simple. Therefore, all items must be included in the contract. No: let's verbally agree. Only written fixation. After signing the contract, it must be registered.

In what cases can the contract be terminated:

• expiration date;
• non-compliance with the prescribed conditions of one of the parties;
• the brand has not gone through the registration process under federal law;
• through the court
• failure to fulfill the financial obligations of one of the parties.

At the same time, there is no question of the return of the lump-sum contribution. You can return it to you if it is written in the contract. In all other cases, you will have to seek a return through the courts. Another option is a violation by the franchisor of its own obligations.

• For example, he does not have rights to the TM he sells;
• The equipment, product or recipe was not provided on time.

Conclusion

A lump sum is a one-time payment for using a brand. There should be no difficulty in understanding the definition here. The main thing to pay attention to is the ratio of the amount of the contribution and the franchise itself. Not all businesses are worth the specified money.

When talking about lump-sum payments and related financial terms, we usually mean the payment of a franchise. In a broader sense, this refers to payments that are associated with the grant of a license.

Lump-sum payment and royalties when paying for a franchise

First, let's talk about what a franchise is. In business, such a situation is quite common when a certain company has already achieved some success and promoted its trademark.

And in the future he prefers to develop, selling the right to other businessmen to work under their trademark, with their material and methodological support in exchange for certain payments.

As a rule, they are of two main types:

1. One time payment
2. Regular payments.

The first payment is just a lump sum payment. Its amount actually includes all the costs that are necessary in order to start a business under the brand name provided.

However, in practice, the amount usually paid out is slightly less. This is due to the fact that, in fact, a certain lending of a newly created business occurs.

Now let's talk in more detail about regular payments. They in this situation are called royalties. This name comes from the fact that they were once called "payments to the king."

In fact, we are talking about payments to the one who provided the franchise and in fact they make up his income.

Three main approaches are usually used to form them:

1. A percentage of profit is paid
2. Instead, a percentage of the trade markup is taken.
3. The fixed amount agreed in the contract is paid.

Each of these royalty generation methods has its own rationale.

• In the first of the cases under consideration, the division of profits looks quite reasonable, because the franchisor provides versatile and significant assistance for the business activities of the franchisee (one who has acquired a franchise to run his business).
• In the second of the considered cases, we are talking about the division of the sum trade allowances. This method is considered more accurate, but, in fact, it is convenient to use it when there is an accurate accounting of such allowances.
• The third case is the simplest, but it is necessary to approach the formation very carefully. Indeed, if it is overestimated, the franchisee's business may become unviable, and if it is underestimated, the franchisor will not receive the profit he has earned.

The essence of the lump-sum contribution and royalties

When considering financial relations in the provision of a franchise, we determined what place the lump-sum payment occupies in this system. Now let us turn our attention to its economic meaning, to its essence.

When a businessman wants to franchise a well-known brand, he expects that he will sell a branded, well-known product in the market and will receive a corresponding profit.

However, much needs to be done to achieve this goal. This includes:

1. The right to operate under trademark franchisor.
2. Supply of branded goods for sale.
3. Organization of activities based on the instructions of the franchisor.
4. Various methodological assistance.
5. Possible assistance to increase the client base.

All of the above required considerable work and financial investments from the franchisor. On the other hand, a franchisee is usually a representative of a small business. Often he does not have enough experience and knowledge.

It is also clear that financial and various material resources he doesn't have enough either. By buying a franchise, he does not just get a good chance at a successful business.

In fact, he is walking along a wide road to business success beaten by someone else. chances of successful development increase many times. However, as you know, you have to pay for everything.

The economic meaning of the lump sum payment in that it pays for entry into the business with the help and under the brand name of the franchisor. To put it a little differently, this is a fee for joining an already existing franchise network.

Another part of the payments (royalties) are payments that have a slightly different economic meaning. Here we are talking about the fact that the business works and makes a profit, deducting part of it to the one who supported the franchisee.

In addition, we should not forget that this amount includes payment for the services provided and the right to use the corresponding brand.

It is worth noting: all types of payment that are associated with the economic relations of franchising are determined in the text of the concession agreement they conclude.

Let's ask ourselves the question of how specifically it is customary to determine the amount of a lump-sum contribution? Are there any standard guidelines for how to deal with this situation? This is actually a difficult question.

After all, here you need to evaluate several rather complex factors. For example, we are talking about how the trademark provided to the franchisee affects its profit? What is the reasonable expected return?

What is the cost of various services and any support that comes from the franchisor? All these questions are very complex. For this reason, generally accepted recommendations of this kind do not exist.

In each specific situation, for each franchise system, different principles for concluding such agreements may apply. Another difficult issue is the exact determination of the profit of the franchisee.

Several different answers are possible to this question. When concluding an appropriate agreement, it is important to specify as much as possible what specific definition is in question.

Other uses of the term

The above meaning of the term "lump" - we are talking about a lump sum - is applicable to the economic relations of the franchise, and in a broader sense - to relations associated with the use of a license.

But the term has other meanings as well. Let's talk about them in more detail. Let's talk about what is meant when they talk about a lump sum.

This term can be used in two different senses. The general shade of meaning is that we are talking about certain amounts that are not broken down into components.

• Lump sum of the contract- this is the total amount of payment under this contract, which is not broken down into components. In the second sense, we are talking about the amount of taxes paid without specific indications of which particular taxes are considered as part of this amount.
• Another term used is "lump-sum". In this case, we are talking about the cost of a unit of a batch of goods on average. That is, it artificially appears that all units of a product in a particular batch are the same and, accordingly, have the same price (even if this is not the case). That is, the conditional price of a unit of goods of this kind is called lump-sum.
• Separately, there is the concept of lump-sum collection or lump-sum tax. Its characteristic feature is that its sum does not depend at all on financial results business. This value is simply directly stipulated in the contract being concluded and does not depend on any kind of features of the transaction.
• There is another use of this term. We are talking about a lump-sum stamp. This term is used in postal activities. In some cases, a firm or institution may carry out a large number of mailings.

In this case, it is convenient for both the enterprise and the post office to pay in bulk, immediately in a large amount. This is usually done through prepayment. At the same time, on postal items this stamp is placed.

What does the lump sum consist of?

Although there are no single and universal rules for its formation due to the huge variety of specific situations, it is still possible to indicate the standard components of this amount.

• One part, of course, is the fee for the right to use the trade mark provided. But there are other components as well.
• Usually franchisors help not only to recruit, but also train staff. These services are, of course, not free.
• Various branding attributes are also usually provided. It can be a uniform for staff, printing, various shop equipment or branded printed products. By receiving this assistance, the franchisee saves himself from certain expenses, shifting them actually to the franchisor.
• Providing these and other similar services The franchisor can also integral part lump sum payment.

Principles for calculating lump-sum payments

Note that payments in connection with franchising consist of two parts, a one-time fee (lump sum) and regular payments (royalties).

Amount of all payments is the total price for the franchise and related assistance. This price can be broken down into these two parts in different ways.

At the same time, you need to remember that you first need to evaluate the appropriateness of the proposed price for the franchise. This is most conveniently done by analyzing similar types of business.

The amount of the lump-sum contribution is usually determined on the basis of the following factors:

1. The amount is usually from 5 to 25 percent of the total payment.
2. If the amount is disproportionately large, then this exposes the franchisee to additional risk.
3. When making payments, inflationary processes in the economy should be taken into account.
4. The franchisor seeks to receive such an amount that, being deposited in the bank at interest, it would give an income equal to royalty payments.
5. The franchisee seeks to act in such a way that the rate of the loan (equal in size to the lump-sum fee) is equal in amount to the royalty paid.

In fact, the lump-sum fee is the cost of the franchise, which in without fail must pay the franchisee. In the broad sense of the word, a lump-sum contribution can have a somewhat greater significance. To understand this term deeper and find out how it appears at all, one should start from its basics.

The franchise market originated in the US, which is why the franchise fee is referred to as the franchise fee. More precisely, then this term stands for a license fee. Consequently, the franchisee in the US pays rather for the right to operate under a particular brand.

In Russian legislation, there is no term "lump contribution", as well as no definition of the word "franchising". It turns out that domestic laws do not protect the scope of franchising. True, on this moment there is a definition of a commercial concession agreement - usually on the basis of it, a company and its partner regulate their relations. This agreement is described in detail in Article 1030 of the Civil Code of the Russian Federation - it is noted there that under the agreement the copyright holder can receive payment. Based on this, it can be assumed that the amount of the lump-sum contribution is indicated in the commercial concession agreement. At the same time, the franchisee, in turn, receives the right to use the brand, methodology, standards and products of the parent company.

True, it is worthwhile to understand that a lump-sum fee may not be the only fee for a franchise business. As a rule, the partner has to pay separately for the rent of the premises, the purchase of goods and necessary equipment. In this regard, it is worth immediately discussing possible costs with the franchisor. At least, approximately this scheme is used by most companies offering a franchise.

We can say that the payment of a lump-sum fee implies some services, often consulting. That is, the franchisor company provides legal and accounting assistance to the partner. Also, a lump-sum fee may include a trip to the place of opening of a new point and further support on all emerging issues.

Lump sum in the language of an accountant

If we talk about the accounting of a lump-sum contribution, then it falls under the Regulation on accounting"Accounting for intangible assets" (document No. 153n dated December 27, 2007). How exactly this happens, let's look at an example.

Suppose a company has 100 franchisees. At the same time, the lump-sum contribution has a fixed amount for a long time. Naturally, the number of partners increases over time and selling a franchise for such a company is the main means of earning. In this regard, all lump-sum contributions from partners in the accounting report are displayed as sales income. If we talk about companies in which franchising is not the main source of income, then the lump-sum contribution is displayed in the form of operating income.

If we talk about taxation upon receipt of a lump-sum contribution, then it is designated as a service rendered. The tax on the amount of such payment is accrued from the moment the franchise agreement comes into force.

What determines the amount of the lump sum?

Analyzing the franchise market, you can see that the size of the lump-sum contribution varies greatly from company to company. For some, it looks like a symbolic payment, and for someone, it looks like a fortune. And sometimes a lump-sum fee is not charged from the partner at all. The latter case is more relevant for those enterprises that produce the offered goods themselves. Either the lump-sum payment simply implies the first batch, the size of the initial purchase, or, more simply, the threshold for entering the business. That is, in principle, there may not be a lump-sum fee, but the franchisee will still have to spend this or that amount. Often this fee may be waived and with a strong desire to increase brand awareness, as well as to influence competitors. Favorable conditions for partners allow solving many problems of the parent company.

We said above that a lump-sum fee often includes a whole range of services, for example, assistance in opening a point, providing advertising materials and training employees. All this does not cost the franchisor for free, so he needs to at least recoup the costs. In most cases, the lump-sum fee is not the company owner's net profit and, as a rule, a lot of money is spent on paying the work of the franchisor's employees, because they also spend considerable time preparing the business and further assistance. Based on this, the franchisor makes some markup in order to at least make some money on the sale of the franchise.

It is essential that the amount of the lump sum is acceptable. That is, so that its size suits the franchisor, and at the same time it is accessible to potential partners. Often this indicator is a key factor in the development of the company. Acceptable conditions for both parties are, as you know, a great opportunity to scale your business.

It should also be taken into account that the franchising market also sometimes has a lot of competition. Often, franchisors in the same area seriously compete with each other, so the conditions for their work can be seriously different. Naturally, with high competition, some offers sometimes seem more interesting than others. It is important here not to succumb to emotions and choose exactly what is right for you and will allow you to successfully develop a franchise business.

Sometimes it also happens that the lump-sum fee is indicated in dollars or euros - this is typical for foreign companies wishing to open their branches in Russia. At the same time, part of the money from the lump-sum contribution here goes to the domestic intermediary company, which is the main representative office of the parent company. This approach is very convenient for foreign enterprises, because in this case they are already protected from fluctuations in the exchange rate in our country. Naturally, everything is also provided here. standard services needed to start a business. It turns out, and here the lump-sum contribution does not go away in the form net profit to the owner - most of the expenses are sometimes paid for the work of employees and all supplied materials. As a rule, opening a branch of a foreign company is more expensive, especially when it comes to a brand with a worldwide reputation.

Sometimes, when forming the amount of the lump-sum contribution, the cost of the technologies themselves is also taken into account. Suppose that the franchisor has some special secret, for example, knows the peculiarities of cooking. Naturally, with due demand, it is also valued quite expensively.

Thus, the size of the lump-sum contribution depends on the specifics of a particular business and on the principles of the organization. Somewhere it practically does not matter at all, but somewhere it is the main income of the company. In any case, the parent company will always calculate all the risks and costs when calculating the lump sum.

Is it possible to find a franchise without a lump-sum fee?

Perhaps someone will think about the question: why do we need a lump-sum contribution at all? Surely, many entrepreneurs do not want to pay “just like that” the money of the parent company and want to save money. There really is a way out, and if you wish, you can find a franchise for which a lump-sum fee is not charged. As a rule, this is often found in trade, but it is possible to find this in other types of business. An entrepreneur should first of all decide what type of business he wants to do, and then all that remains is to choose from the existing options. This is not so difficult to do, however, you need to take into account the specifics of the business. To confirm this, below are examples of franchises for which such a fee does not need to be paid.

Be sure to check out franchises without down payment in our catalog (OVER 100 OFFERS!) -

firefly

The company involves the sale of unique coloring books and postcards. The first outlet under this brand opened in 2016. Since 2018, the company has been providing a franchise to everyone.

The initial investment starts from 50 thousand rubles. It is assumed that the monthly profit of the partner will be about 60 thousand rubles per month. Therefore, you can recoup all investments here literally in one or two months after buying a franchise. In this case, no other payments, except for the payment for the goods, are required. That is, everything is quite easy and simple. The parent company, in turn, provides all related advice and ensures uninterrupted supply of goods.

For cooperation, an area of ​​​​1 to two square meters is required here (a small rack with goods is put up on the trading floor). Moreover, the products of this company can be successfully sold in an existing outlet.

Gerry Weber

German brand Gerry Weber plans to open a fashion store women's clothing. The company appeared in 1973, and it has been cooperating under the franchising system since 1999.

Estimated volume of investments: 6 million rubles. Payback time: about one year. Based on this, we can say that a partner can earn about 500 thousand rubles a month.

The partner is provided with comprehensive support, training of sellers is carried out. A store business plan is developed on an individual basis, assistance is provided in the purchase of a suitable product range. In addition, the franchisor company helps to choose the most suitable premises for work. Also, after buying a franchise, the entrepreneur is directly assisted in opening a store.

To open a Gerry Weber franchise business, you need a room with an area of ​​​​one hundred to two hundred square meters. It is important that it is in a modern mall or on the main street of the city. Naturally, from location outlet the profit of the franchisee is seriously dependent, so this factor must also be taken into account when purchasing the specified franchise.

upside down house

The Upside Down Franchise is a business based on the organization of a unique art object. As the name implies, the structure is a house standing on the roof (more precisely, at an angle of about ten degrees). From the outside it seems that the house is about to fall, but inside a person feels rather unusual.

Similar houses already exist in different cities and have been successfully tested as a place for mass visits. They are photographed against their background and at the same time they are quite suitable for a local attraction. The information about the franchise notes that in cities with a population of two hundred thousand people, they are in high demand. Obviously, this is best suited for settlements with good tourist traffic. The company itself has been operating since 2015 and at the moment eleven such houses have already been opened under this franchise.

Required amount of investments: from 2 million 300 thousand rubles. Approximate earnings: 300 thousand rubles a month. Estimated payback period: three to eight months. It is noteworthy that the franchisor gives an official guarantee for this. The main profit comes from ticket sales (on average, about thirty thousand people visit such a place a year). It is possible to sell photo services, souvenirs, drinks and snacks. In fact, in such a place you can offer almost any service related to the organization of leisure, for example, rental of bicycles or hoverboards.

By purchasing this franchise, the partner receives a business plan and all instructions for finding a suitable place to work. All related documentation is also given, allowing you to conduct activities according to the law.

To open an upside down house franchise business, you need a plot of land ranging from twenty-three to thirty square meters.

My Brilliant Smile

The My Brilliant Smile franchise is a business for those who want to make money on teeth whitening. The company was founded in 2013 and launched the franchise system in 2014. Now the firm has about one hundred and twenty partners. It currently has five branches.

The franchise information indicates that an entrepreneur can earn about 70 thousand rubles a month, and the average check here is three thousand five hundred rubles. At the same time, you can get from thirty to sixty clients on average per month. The volume of investments in this business is about 100 thousand rubles. It turns out that in one or two months an entrepreneur can recoup all his investments.

The partner is assisted in promotion through social networks, provided Personal Area and training program. Necessary promotional and informational materials are provided, sets of company contracts are provided. The CRM system and the possibility of online registration of clients are being set up. Analysis of competitors is carried out, a one-page website is provided. In addition to standard procedures, clients are offered whitening products at home.

The area of ​​​​the room here should be at least ten square meters. This franchise does not require any licenses and qualified medical professionals. Literally one or two employees are enough for full-fledged activities. It turns out that absolutely any entrepreneur can start cooperation on this franchise and, it should be noted, with relatively low investments.

dream line

The Dreamline franchise is the sale of mattresses, beds and other related furniture. The company's production capacity reaches thirty thousand units per month. The enterprise itself appeared in 2007 and at the moment it has fourteen branches.

The initial investment here is 400 thousand rubles, and the partner's monthly profit can reach up to 350 thousand rubles. Consequently, the franchisee's investment can pay off in one to two months.

Representatives of the franchisor, in turn, travel to the partner's city to marketing analysis and assistance in the selection of suitable premises. The profitability of the future store is also estimated. Provided to the partner and samples of products. It is also noteworthy that the first exposition of furniture is provided to the partner in installments. An individual project is developed in accordance with the chosen retail space. The store is provided with advertising posters, catalogs and other branded materials. Recruitment and training of store staff. Information about the partner is posted on the official website of the company.

For cooperation under this franchise, the store area must be at least forty square meters. It is important to place a point in specialized furniture centers, or in places with good targeted traffic. Properly choosing a suitable place to work, it will be possible to talk about a quick return on investment.

smart vision

The Smart Vision franchise is an income from a medical optics salon. The first store under this brand opened in 2009, and there are currently fifteen such outlets in total.

Investments here start from 400 thousand rubles, and the payback period takes about five months. Based on this, we can say that the monthly earnings of a partner can be about 80 thousand rubles.

When buying a franchise, an entrepreneur receives a salon design project and a package of documents that reflect all the nuances for full-fledged work. Given and step by step marketing plan to successfully launch the store. In the course of cooperation, modern software products, with which you can control your business from anywhere in the world. A personal website is also provided along with social networks. Assistance is provided in the recruitment and training of staff. The franchisee is assigned a personal manager, who further supervises all his work. Necessary medical equipment available for rent and this allows you to save a substantial amount.

Depending on the available investments, the partner can choose the appropriate format of cooperation. The area of ​​the future store will also depend on this choice: the minimum option should have an area of ​​​​twenty, and the maximum - from sixty square meters. It is noteworthy that for cooperation under this franchise, you do not need to have experience in entrepreneurial or medical activities.

Conclusion

So, we figured out that a lump-sum fee is, as a rule, a fee for a range of services provided by the franchisor. This usually means comprehensive assistance in organizing and conducting activities, as well as the provision of all letterheads and promotional materials.

By paying a lump-sum fee, the entrepreneur immediately buys a franchise and saves himself from many organizational problems. Given the cost of a lump-sum contribution, you can already find out the specific price of a particular type of activity. Again, it helps to calculate all kinds of risks. In general, we can say that a lump-sum contribution is a kind of threshold for entering a business. Often it is more symbolic and does not represent the main source of income for the franchisor. Moreover, it is more profitable for many companies to simply sell their goods in bulk and provide all kinds of support to the entrepreneur.

Some companies may not charge a lump-sum fee at all, but then the franchisee should find out what expenses are possible when starting a business. Naturally, they can be quite large and without a lump-sum fee. Moreover, expenses can be unforeseen, but it is with a lump-sum contribution that many of them can be completely eliminated. At the same time, if an entrepreneur fundamentally does not want to pay it when opening a branch of the company, then he can easily find offers without a lump-sum fee - there are no problems with this today either, and above we have given only the smallest part of such examples.

Starting your own business requires a lot of money. If there is little initial capital, then a novice businessman should pay attention to franchises. This requires basic knowledge, starting with royalties, a lump-sum fee and, in fact, a franchise. There are people who perceive the first two definitions as one and the same. Therefore, it is necessary to understand in detail what royalty is in a franchise and how it differs from a lump-sum fee.

A little about franchising

By creating own business, every second person has a fear that the business will turn out to be unprofitable. Maybe, new shop will not be in demand, the goods in stock will not be popular with buyers. The acquisition of successful technologies that have enabled others to make a fortune is called franchising.

This is an efficient way to run a successful business. Using a franchise is an excellent way out for novice businessmen who are not confident in their abilities, and therefore they try to start a business with proven methods. Also, the use of a popular brand will help to promote very quickly. new brand.

There are two parties involved in an agreement:

• franchisee - the one who acquires the technique;
• A franchisor is someone who sells knowledge about running a successful business.

Both parties comply with the payment terms of the contract. The franchisor has the right to fine the partner for violation of the contract.

When a franchise agreement is concluded, the seller grants the right to use his brand. A young businessman will not be able to run his business on his own, as the development movement is completely controlled and adjusted by the brand holder.

When signing an agreement on the use of a brand, trademark and other intellectual property, the buyer regularly makes payments for the use of the subject of the agreement, pays an interest rate. These payments are called royalties.

Subject of the contract:

• patent. It may be an invention;
• copyright. For example, the use of books, devices in their business activities;
• business model;
• logo;
• brand;
• formulation;
• natural resources used for profit.

The amount of royalties in the franchise is prescribed in the contract. In this case, the figure will be fixed and repeated monthly or a percentage of monthly sales will be calculated. This moment is regulated by entrepreneurs independently.

Three types of settlements with the holder of intellectual property are considered:

1. A percentage of the amount of product sold is calculated. In this case, settlements with the franchisor are made only on actual sales. Therefore, there is a need for constant control over the activities of the franchisee.
2. Percentage of margin. The amount depends on the interest accrued on top of the input value. This means that the amount of royalty will be calculated from the markup on the product being sold.
3. Fixed rate or fixed royalty. In this case, the entrepreneur pays the amount monthly. The size is set based on the data of the enterprise that bought the franchise. This means that what bigger company, the more will fixed amount.

There is also a fourth type of payment - these are the main franchise payments in a combined form, when certain types product contain several types of royalties at once.

The calculation of the amount of the monthly remuneration depends on how popular the proposed brand is and in which region it is planned entrepreneurial activity. If the business will unfold in a small town, then the rate is reduced.

Under these conditions, you should not count on big profits.

Russian market tries to conclude a contract for the use of a franchise, setting a constant figure for remuneration. In this case, the national currency is used. But this is only in the contract. Often the amount subsequently increases due to the use of indexation. As a result, the "fixed" amount is tied to inflation and is constantly growing.

If we talk about the interest rate, here the coefficient ranges from 5 to 10 percent. Often there is franchising without payment. But this is not quite the rule. In this case, the manufacturer or supplier, who is also the franchisor, becomes the franchisee. The cost of an intellectual product is included in the price of raw materials or finished products. Profit will depend on increasing its own turnover.

Another term that comes up when it comes to acquiring ownership of intellectual property.

What is a lump-sum fee - this is the amount of payment spent in the franchise once. When concluding a contract for use, the amount of the initial payment must be indicated. It must be paid immediately and in full. There are agreements where the amount of the lump-sum contribution is divided into several payments.

What is the contribution amount:

• how much money will be spent on launching a new product;
• the cost of services provided to a new member;
• how popular the brand is.

By way of a one-time payment, the buyer passes trademark and advice on the management successful business. The franchise implies that in order to establish the work of a new enterprise, they conduct a preliminary market analysis and assistance in doing business. That's what the fee is paid for.

As a rule, 80 percent of the deposited amount covers the costs of the seller's company. The remaining 20 percent goes to the acquisition of copyright.

Taxation of franchise payments

Taxes are levied on contracts for the acquisition of intellectual property in the case when one of the parties is a representative of another state. Certain countries introduce taxation in the amount of 40 percent of the contract amount, while others, on the contrary, simplify the collection of contributions to the budget by completely eliminating them in relation to franchising contracts.

The legislation of the Russian Federation establishes that all registration procedures in government bodies contracts produced by the franchisor. At the same time, the agreement is subject to the laws of the country where the owner of the intellectual product works.

With regard to taxes and fees, the contract concluded under the franchise gives income related to non-operating. In the case when the first participant - the seller does not have a permanent representative office in Russia, then he will be affected by the accrual of taxes, the need to pay them in the amount of 20 percent of the amount of the received turnover.

There is an agreement between Russian Federation and the country where the franchisor is registered, on the abolition of the double rate, allows you to exempt the citizen from paying taxes and contributions to the budget of the Russian Federation.

When running a business, there are no trifles, and this applies to franchising. Before signing a contract, it is worth finding out what exactly the party is offering, what development and support services will be provided. The franchisor's answers will immediately make it clear how reasonable the lump-sum fee and royalties are. It also checks the popularity of the proposed brand, the qualification of the services offered.