Forms of concession
Posted: Tue Jan 07, 2025 4:54 am
Commercial concession will differ in different areas of business activity, as well as depending on the interaction with the copyright holder and the level of his support.
For example, by dividing by spheres, we can distinguish several types of commercial concession :
Commodity concession is the implementation by the user of a business selling goods.
A manufacturing concession is a business that produces goods, usually using technology patented by the copyright holder. For example, the production of high-tech construction materials or the production of ingredients for the food industry.
Service concession is a business providing services or performing work. For example, a laboratory diagnostics and medical services center, catering or beauty salons.
A mixed concession combines several types. For example, a franchise of a bakery chain includes both the production of bakery products and catering services.
If the contract is concluded directly between the copyright holder and the user, then it is a direct concession. The contract concluded between the user, who has previously concluded a contract with the copyright holder, and the end user is called a subconcession.
Depending on the level of support for the lithuania whatsapp phone number copyright holder, there are two types of concession :
Concession without support of the copyright holder. In this case, the agreement provides only the opportunity to conduct business under the brand of the copyright holder. The copyright holder does not provide assistance to the user.
Concession with the support of the copyright holder. The agreement assumes assistance to the user in finding personnel, contractors, premises for rent, as well as in matters of advertising and other aspects of doing business.
On topic. Royalty in franchising - what is it and how does it work
Agreements and conditions
There are conditions that a commercial concession agreement must necessarily contain :
The right to use intellectual property objects, including a trademark.
Methods and procedures for using intellectual property objects.
The amount and procedure for payment of remuneration to the copyright holder.
Providing the user with instructions and guidance on how to ensure quality and proper use of intellectual property.
The amount of assistance provided by the copyright holder.
The procedure for quality control of goods or services by the copyright holder.
In addition to the above, additional conditions can be discussed and agreed upon during the preparation of the agreement. This may include the term of the agreement, the territory, the possibility or obligation to conclude subconcession agreements.
The agreement may also include various restrictions, such as the exclusivity of the franchise or the user's obligation to agree with the copyright holder on the location of the premises for conducting business.
For example, by dividing by spheres, we can distinguish several types of commercial concession :
Commodity concession is the implementation by the user of a business selling goods.
A manufacturing concession is a business that produces goods, usually using technology patented by the copyright holder. For example, the production of high-tech construction materials or the production of ingredients for the food industry.
Service concession is a business providing services or performing work. For example, a laboratory diagnostics and medical services center, catering or beauty salons.
A mixed concession combines several types. For example, a franchise of a bakery chain includes both the production of bakery products and catering services.
If the contract is concluded directly between the copyright holder and the user, then it is a direct concession. The contract concluded between the user, who has previously concluded a contract with the copyright holder, and the end user is called a subconcession.
Depending on the level of support for the lithuania whatsapp phone number copyright holder, there are two types of concession :
Concession without support of the copyright holder. In this case, the agreement provides only the opportunity to conduct business under the brand of the copyright holder. The copyright holder does not provide assistance to the user.
Concession with the support of the copyright holder. The agreement assumes assistance to the user in finding personnel, contractors, premises for rent, as well as in matters of advertising and other aspects of doing business.
On topic. Royalty in franchising - what is it and how does it work
Agreements and conditions
There are conditions that a commercial concession agreement must necessarily contain :
The right to use intellectual property objects, including a trademark.
Methods and procedures for using intellectual property objects.
The amount and procedure for payment of remuneration to the copyright holder.
Providing the user with instructions and guidance on how to ensure quality and proper use of intellectual property.
The amount of assistance provided by the copyright holder.
The procedure for quality control of goods or services by the copyright holder.
In addition to the above, additional conditions can be discussed and agreed upon during the preparation of the agreement. This may include the term of the agreement, the territory, the possibility or obligation to conclude subconcession agreements.
The agreement may also include various restrictions, such as the exclusivity of the franchise or the user's obligation to agree with the copyright holder on the location of the premises for conducting business.