Franco(redirected from Franchi)
Also found in: Dictionary, Thesaurus, Wikipedia.
a term used to describe a sale in which the seller pays for part of the transport charges, that is, sales in which goods are delivered free to a certain point. When applied to specific cases, the term “franco” is replaced by “free.” For example, in sales that are free alongside ship (f.a.s.), the seller bears the expense of transporting the goods to the wharf. In free on board (f.o.b.) sales, the seller will also pay for loading the goods on the ship; loading charges are also borne by the seller in free on truck sales and free on rail sales. With sales that are concluded on the basis of delivered prices, the seller pays for all transport charges, including the charges for unloading the goods at the premises of the purchaser. In ex factory sales, however, the buyer bears all transport costs after the goods leave the warehouse of the seller.
The General Conditions of Delivery of the Council for Mutual Economic Assistance provide for franco sales for goods shipped by rail, motor vehicle, or air, as well as for goods sent by mail.