There are several lexical meanings for the word “franchise”. French in origin, the term can be seen in completely different areas. This concept occurs when the conversation turns to the economy, insurance, and even cinema. Let's analyze each case in order.
Franchise in the economy
When a firm succeeds in the marketplace, it begins to sell the right to use its name, i.e. brand, to others. At the same time, people who wish to acquire such a right must maintain the level of quality, service, appearance of outlets, etc. The owners of the company, franchisors, and a person who wants to trade under the brand of this company enter into an agreement. Such an agreement is called a franchising agreement or franchise.
In simple terms, the meaning of the word “franchise” is a license, a permission to use a brand. A person who acquires a franchise, a franchisee, receives a ready-made business model. People in his country or even around the world trust this company, which means that the franchise buyer already has customers. Franchisors also help in organizing a business, conduct trainings,can provide equipment. In return, the franchise buyer pays a large sum of money to the business owners at once and for each year.
Some of the most famous franchises are fast food restaurants: Macdonald's, KFC, Burger King. In each country, something different can be added to the menu and appearance of establishments, but in general the concept remains unchanged. For example, in Germany, McDonald's sells beer, because otherwise the restaurant's attendance will drop sharply.
Deductible in insurance
In this kind of business, the meaning of the word “franchise” is used in many ways. In a generalized version, these are additional conditions of the insurance contract. That is, the insurance company separately prescribes in the contract the situations in which it pays you extra or you pay it. There are several classifications and names of franchises in insurance. Consider, for example, conditional and unconditional.
The conditional deductible is the amount of damage above which the insurance company reimburses you. For example, when you fly to rest, be sure to take out insurance. If you get sick and the amount of treatment was 50 euros, and the deductible was issued for 60 euros, the insurance company will not pay you anything. If you spent 65 euros on treatment, the insurance would refund you 65 euros.
Unconditional deductible reflects the amount you take on for any amount of damage. In this case, the meaning of the word "franchise" can also be illustrated by the example of recreation. Let's say you agree tofranchise of 20 euros. Something happened to you on a trip, you spent 15 euros to eliminate the consequences. The insurance company pays you nothing. And if you spent 25 euros, then she will pay you the difference from this amount:
- 25 – 20=€5;
- 5 euros is the reimbursement you will receive from the insurance company.
Obviously, deductible insurance is cheaper. When purchasing such a policy, you must bear the additional expense. If you refuse to risk, you will have to pay more.
Cinema franchise
In this case, the meaning of the word “franchise” is more colloquial. The official name for this phenomenon is the media franchise. This concept means a set of characters and scenery that go from film to film. This phenomenon also extends to computer games and literature.
The most popular franchises in the media industry are Harry Potter, Lord of the Rings, Star Wars.
You can come across this concept in movie reviews. For example, here is a quote from a review of the Terminator films:
Neither the newfangled graphics, nor the apocalyptic ending of the film, with which the authors wanted to close the franchise with the thought "the future cannot be changed," saved. Parts 4 and 5 win over Part 3 in part because of the performance of the non-protagonists.
Conclusion
The article analyzes the most popular meanings of the word “franchise”. As you can see, this is a rather ambiguous concept. However, the areaThe usage of the term is different, so it will not be difficult to determine what exactly is meant.
