Franchising is a form of business association in which one entity to another legal entity provides for a limited time and pays:

• The right to use a commercial brand names and patents,
• Key components of the composition of the business (equipment, furniture, corporate identity, software, etc...),
• Right to sell merchadise or provide services,
•                Merchandise,
• Know-How (it entirely covers all non-patented practical information),
• Franchise Guide (instructions for operation, procedure, various forms of documents),
• Education,
• Support before and after the opening of a franchise (and assistance in preparing a business plan, business plan (marketing) and salesactivities, equipment of the office space, personnel selection, marketing activites and other activites),
• Constant development and improvement of the business.

 DEFINITION: Franchising as defined in the European Franchise Code

Franchising is a system of marketing goods and/or services, and/or technology that is based on a close and ongoing cooperation,  legally and financially between independent franchise owner of the company and its individual Franchisees, where the franchise owner guarantees its Franchisees the right, and take upon itself the obligation to conduct the business in accordance with the concept of franchise.

The right entitles and obliges the individual Franchisee - Franchisee in exchange for direct or indirect financial componesation to use trademark of the franchise owner  - franchisor of a product or service,know-how, business and technological methods,procedural  composition and other rights to industrial or intellectual ownership through consistently providing commercial and technological assistance within a time period specified in the written franchise agreement concluded between the parties for this purpose.