What does "Franchise" and "Excess" mean on an insurance policy?

Sometimes insurance companies, insurers, would like to limit their risk exposures, especially when certain damage of the goods is an ordinary expectation throughout the related sector.

In such circumstances insurance companies add technical insurance terms,"Franchise" and "Excess", to the insurance policies, in order to limit their financial responsibilities.

On this article I will try to explain the meanings of "Franchise" and "Excess". 

What does "Franchise" mean on a cargo insurance policy? What does "Excess" mean on a cargo insurance policy.