Franco means free delivery. It is 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 a franco price is quoted, it includes the price of goods and all sorts of expenses incurred for the delivery of the same from the seller’s warehouse to the buyer’s warehouse. It means carriage paid, is used in commercial language to designate deliveries in which the shipper has taken care of the freight costs (or shipping), not the receiver.
The label ‘ ex-works’ (or also ‘carriage forward), means that the recipient must assume freight or shipping costs. E-Commerce allows consumers to electronically exchange goods and services with no barriers of time or distance. There are other commercial terms (commonly known as Incoterms), that regulate delivery conditions in the transport industry. These clauses deal not just with payment for transport, but also what is known as the transfer of risk, which determines to what point the shipper is liable for the condition of the goods, and when this becomes the recipient’s responsibility. Franco price includes the cost of goods plus all expenses up to the buyer’s warehouse.
Freight on Board (FOB), also referred to as Free on Board is an international commercial law term published by the International Chamber of Commerce (ICC). It is a transportation term that indicates that the price for goods includes
delivery at the Seller’s expense to a specified point and no further. It indicates the point at which the costs and risks of shipped goods shift from the seller to the buyer. In modern domestic shipping, the term is used to describe the time when the seller is no longer responsible for the shipped goods and when the buyer is responsible for paying the transport costs.