A franchise without investment - a mythical legend or a bright opportunity for startups? Creating a franchise: a detailed action plan Open a franchise business

Even a 15-year-old schoolboy knows that business is a thing that requires money. It doesn’t matter what we’re talking about – a chain of restaurant complexes or a stationary car wash. If in the first case we need a lot of money to buy/build a room, equip it, hire staff, purchase goods, then in the second case, at a minimum, we will need a brush, a washcloth, water and detergents. Agree, in both cases you will need so-called start-up capital.

Forget about the word “free” if you decide to dive headfirst into the franchising business. This does not happen from the word “in general.” Even if they’ve already given you a contract and sweetly promised that you will be able to buy a franchise without investment, the first thing you should do in such a situation is to dive in headfirst. No, not into a business, but into a commercial concession agreement. Yes, yes, on the very piece of paper that the girl manager so insistently offers you.

Let's look at what kind of beast this “franchise without investment” is, and under what conditions they can offer you free business. Go.

“Free franchise”: free and sweet vinegar?

Let's imagine a certain abstract Nicholas. For example, a guy spent his entire adult life hanging out in the garage next to his favorite relative, a car mechanic, raving about engines and memorizing the internal structure of any car. And so, Nikolai grew up, but the desire to deal with cars did not disappear, but on the contrary, it grew.

Having seen that the most famous auto repair brand was selling franchises in the regions, Nikolai decided not to spend the next 20 years collecting the required amount to open a car repair shop, but just turned on my head. He collected various data for a month, studied the market and finally compiled good business plan to open your own workshop. Since Nikolai was also smart, he did not bother investors with his plan, but turned directly to the franchisor. Nikolay understood that a service station operating under a well-known brand practically guaranteed him profit and a flow of customers.

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After considering the proposal, the franchisor, interested in developing his brand, decided to meet Nikolai halfway. Thus, the guy became the owner of a branded service station without investing a penny into his business. BUT! In the next 2 years, Nikolay will work off the funds invested by the franchisor.

This is the most the best option"free cheese" It is important to understand that it will not work without investments at all. In any case, someone will invest funds - and if it is not you, then it will be your franchisor or a third party, to whom you will then remain in debt.

The above story is of a fairytale/mythological nature. IN real life Such events are extremely rare. Franchisors usually prefer the “money in the morning, chairs in the evening” model. Few people want to take the risk of investing in “ dark horse" But still, such a development of events is possible.

Common options for “free” franchises

Typically, brand owners who are interested in developing their business offer the following franchise options without investment (you can find a lot of such offers on the Internet):

  1. 0 lump sum and certain % royalty;
  2. the presence of royalties and a lump sum payment, which is provided in installments;
  3. the lump sum fee is symbolic or absent, and royalties are not paid in the first 2-4 months. Thus, the franchisor gives the franchisee time to get the business back on its feet.

Why can a franchise never be 100% free?

You can right now cross out all of the above with franchises found on the Internet “without lump-sum fees and royalties.” Yes, yes, those exist too! For example, the Button Blue franchise (sale of children's clothing) or Dobrota.ru (sale of medical and cosmetic products). Franchisors, surprisingly, do not require any fees at all.

BUT! They openly state that the franchisee will have to take a number of steps to prepare the business:

  • search for premises;
  • conclusion of a lease agreement;
  • repair and Finishing work in room;
  • equipment;
  • purchase of goods;
  • decor necessary licenses;
  • preparation of documents.

Do you think it is possible to do all this without investment? That is why such franchisors, when selling their business models, set the amounts that will be required as starting capital. Providing funds for all this is 100% the responsibility of the franchisee.

5 types of franchise work without investment

If you don’t have any money at all, but even in your dreams you see yourself as an entrepreneur, this section will be for you. In fact, there are 5 options to open a franchise business without investment.

    Investments are everything to us.

    Have you suddenly realized that selling ice cream according to old French recipes is your childhood dream and your life’s work? Great! In this case, look for an investor.

    What will you need? Just a smart business plan. Your task is to convince a potential investor that by investing in your franchise business, he will soon buy a private jet.

    Build trust.

    If you have a desire to work under a certain franchise, convince the franchisor to trust you. Take a closer look at his business model, delve into all the internal processes, and show your sincere interest in his business. Experienced franchisors, as a rule, understand that a poor entrepreneur who is ready to work 24 hours a day to develop his business will quickly begin to prosper and make a profit, while even a super profitable startup will wither away for an indifferent millionaire.

    Become a implementer.

    We are talking about franchises for sale. In fact, the franchisor gives you a product for a certain amount, and your task is to sell it. This especially works in sales and services. That is, you get a ready-made store or other outlet filled with goods.

    What do you need to know? Typically, goods in such business models are issued in installments. For example, for six months. If you managed to implement everything in 6 months, the flag is in your hands. If not completely, please, pay the franchisor for the remaining products. List of franchises without investment for implementation:

    • TOM FARR;
    • Medicine;
    • Fabretti.

    By entering names in search engines, you can easily find out what the above-mentioned franchisors offer and under what conditions. This option is perfect for entrepreneurs who really know how to sell.

    Dive in network business.

    Despite public censure and discussion, network business is really capable of bringing good income. Again, this option is only suitable for those who know how or are eager to sell. Contact any brand network company and propose your candidacy. Rest assured, online businessmen will be happy to provide you with the necessary goods. Then everything depends on you. This type can be classified as reverse franchising, where the franchisor provides full service to the business.

    No lump sum fees.

    Many companies selling franchises do not require lump-sum payments, and also provide deferments for royalty payments. This option is ideal if the franchisor also provides the goods in installments. In this case, investments will be either minimal or not required at all.

Ready-made franchise business without investment: what does the Internet offer?

The main idea of ​​franchising is that the franchisee is given the business processes of doing business with a certain product or service, as well as training, the opportunity to use the company’s brand, etc. Many franchises only hide behind the phrase “no investment,” but in fact, unforeseen expenses will fall on your shoulders , which will slow down your income. Business options without initial investment:

  1. "eCoswey". international company from Malaysia, which provides you with an online store. An offline point is provided to you for a sufficiently large turnover in the business - the company pays for the rent of the premises, design, public utilities, carries out the purchase of goods and equipment. Your task is to develop the business. And forget about investments.
  2. "NLinternational". An international company from Russia that provides an online store, product, marketing materials, training, business processes, delivery and service also on the shoulders of the parent company. When the turnover in a business reaches a certain level, you can open your own offline store, but before that you need to register as an individual entrepreneur.

What’s most interesting is that finding such franchising offers now is not a problem. The 21st century opens up really good business opportunities even for those who have no money, but have a great desire to develop their business.

Take a franchise without investment: pitfalls

Unfortunately, every barrel of honey has its own fly in the ointment. The most common “nuances” of franchises without investments:

    legal "dead loop". Franchisors are often very clever when it comes to offering someone a franchise for free. Often the contract contains overly strict conditions that are almost impossible to implement.

    For example, you may be offered to sell children's clothing, and the franchisor provides the goods in installments. According to the terms of the contract, the goods are provided for the amount of 1,000,000 rubles, and you must sell for 500,000 rubles in the first month. Those who understand trading know that this is unrealistic.

    Advice: before contacting “free cheese”, contact experts and talk to owners of similar stores. It is quite possible that the franchisor sets impossible conditions for you, thereby dooming you to bankruptcy and endless fines.

    self-confidence. Nothing ruins entrepreneurs more than excessive pride and self-confidence. Even if you are 200% sure that your entire city has dreamed of tasting oriental-inspired sweets all its life, still, do not agree to sign such a franchise until you receive full-fledged research of your market from an expert point of view.

    Advice: contact marketers and statistical centers. Now, when you have statistical studies, analyses, and the results of opinion polls in your hands, then make a decision. At least you can soberly assess the situation and understand your chances of success.

Current niches of profitable franchises

On the Internet you can easily find all kinds of catalogs that can be sorted into lists of profitable, unprofitable franchises, without investments, with millions of investments, and so on. I would just like to describe here which areas are currently relevant:

  1. Everything for children. As you know, they don’t skimp on the “flowers of life.” Even in times of crisis, this remains one of the most profitable areas. This should include the sale of clothing, toys, installation of playrooms in large shopping centers, children's cafes and much more.
  2. Repair services. This is one of the most profitable niches. You can install heated floors, decorate rooms, redecorate offices, install suspended ceilings, and so on. In any case, if you are good at this, you will not go wrong.
  3. Franchise of an online store (both without investments and with investments). The advantage of this business model is that it covers almost all Russian cities, not limited to just your city or region. You can sell almost anything. But! Experts still recommend concentrating on youth needs - vapes, branded clothing, hookahs, products for gadgets, and so on.
  4. IT technologies. Development of websites, applications, and software is a very interesting and promising field. If you are good at programming codes, congratulations, you have a great opportunity to get rich in the very near future!

“- Do you have scripts, regulations or instructions for future franchisees? – Young man, understand, none of this matters!

The main thing is the idea and its sale, and everything else is tinsel. I need “plowmen”! People who will buy and figure it out themselves.”

This is precisely the dialogue I recently had with an entrepreneur who needed to create a franchise.

And these are not exceptions; many do not understand that this is more difficult process, and you need to approach it systematically for the successful existence of your future network.

The entire dialogue described above ended with words addressed to me: “Ugh. I thought you were a professional.”

And fortunately, yes, I am a professional. And I understand that packaging a franchise is not just taking a business idea that you have and trying to “infect” as many people as possible with it for their own money, and then watching whether it works or not.

And subsequently listen to constant complaints from them that “There are no clients” or “Why did I buy a franchise from you, return the money!”

No, packing a franchise means collecting from your business everything you need for effective and profitable sale, while not forgetting that all this is needed not only for show, but also for successful work future franchisee.

Therefore, be prepared for the fact that collecting and packaging your business is a long and complex process for which you need to prepare in advance.

After all, it contains a large number of activities, ranging from developing a franchise concept to creating contextual advertising to attract buyers.

VERY FROM A FAR

The founder of our agency, Nikita Zhestkov, always says during consultations that for business to grow, competitive environment You need to initially focus on 2 things.

But entrepreneurs mostly ignore them: study (definition) and.

And in fact, this is very important, although in theory everyone already knows this. But in 99% of cases they ignore it, chasing chips. After all, it’s boring, there’s no need for a million other reasons.

Believe it or not, the franchise package also contains a boring theory with which I will start the article. After reading and understanding it, you will understand how to ideally package a franchise.

I will give you only the most important things, we will leave the tinsel for other blogs. So here we go.

Combat readiness!

Ask yourself the question right now: “Why should people buy your future franchise?” The answer to this question lies in a boring theory.

There are only 4 global reasons on which people decide to buy a franchise:

  1. Famous brand. Every normal owner understands that if he opens a McDonalds franchise, he will definitely pay for it in the near future, because customers will always come to this brand.

    There are such companies in every industry, and the conditions for their acquisition are the most aggressive and strict, but this does not prevent them from being successfully sold.

  2. A unique product. Sometimes it’s easier to buy or join a ready-made solution (such as creating a turnkey franchise) than to develop it yourself.

    For example, the well-known 2Gis directory is a franchise that people buy because it will take years and millions of dollars to develop such a project. By the way, the franchise of this brand starts from 300 thousand dollars.

  3. Well-established business model. A clear entry amount, exact payback periods and tested results in more than one city - all this also influences the purchase decision.

    That is, when buying such a franchise, people want to be sure that they will not go broke, because everything works without failures, like a Kalashnikov assault rifle.

  4. Franchise cost. By default, people want to invest less and earn more.

    That's why minimum amount entry matters, but this does not mean that if the franchise is expensive, then no one will buy it. It’s just that the lower the cost, the wider the market and the easier it is to sell the idea.

You already have a logical question: “Why do I need to know these reasons?” The fact is that if you have a question about packaging and selling a franchise, then first you need to understand at what stage your business is.

And what can you offer to future franchisees? And as a result - find your strong point and strengthen it.

Check by Prof. suitability

To make it easier for you to determine how ready your business is for franchise packaging.

Here is a list of short, but very, very important questions, after the answers to which everything will fall into place, and there will be no unnecessary expectations about the success of the idea (as a rule, all owners dream that everyone needs their franchise):

  1. Is your company famous?
  2. Is your brand/trademark registered?
  3. Do you have a unique product?
  4. Do you have all the calculations for investments and expenses in a positive and negative scenario?
  5. Do you have a proven business model with sustainable profits?
  6. Do you have success stories in other cities?
  7. Do you have a working customer acquisition system?
  8. Do you have all the documentation for working with personnel?

These are only 8 questions, they do not reveal many details (which we will talk about later).

But now it is clearly visible that simply making it and setting it up is not enough.

You will have to go a long way to get to the landing page, although even in our case, the site is only the beginning of the end.

WE ARE ALREADY MORE THAN 29,000 people.
TURN ON

A 1000 MILE JOURNEY

Let’s say you are ready, or rather your business works like a clock and brings a stable profit. And it can successfully do this in other cities and countries.

And the brand is already known outside your region. Well, that's great! All that remains is to package it beautifully and sell it.

If we think globally, then there are 5 steps in total in packaging and selling a franchise.

Each point consists of many small actions, but I will analyze the first 3 in more detail, however, I will also focus on the remaining two.

Since if you plan to sell not one or two franchises, but at least several dozen, then you will have to constantly refine and improve the packaging of your franchise (and, as a result, raise the price for it).

Ready material. We have prepared a document for you with a complete list of actions for packaging franchises —->

To fully understand it, you should definitely read the entire article below. So let's go.

Step 1. Preparation

Packaging a business into a franchise means completely registering all business processes and systematizing your business.

Therefore, if your business is in complete chaos and everything depends only on you, then I dare to disappoint you.

The future franchisee will not be able to act like this, because he does not have your experience and ingenuity, he just buys all this in packaged form.

1.1. Conduct an audit

Any planning begins not with setting, but with determining what exists now.

Therefore, before you start, you need to conduct a detailed audit of your business, which will allow you to understand what position it is in now and what needs to be done. To do this, you can go through a series of questions from our article.

Most likely, you will skip this step if you package the business yourself, but any normal agency that provides franchise packaging services will definitely start with this.

That is, it will not only ask what you have from your documents, but will also try to get out of you everything that potential franchisees need, and you simply haven’t thought about it.

1.2. Prepare documentation

Agreement between you and the franchisee. This is a very important and responsible moment, so you will 100% need the advice of a lawyer who understands franchising issues, because there are a lot of subtleties that can then get in your way.

For example, you can first patent your trademark and sell the franchise after that (and this is a year of waiting), or make an agreement with the future franchisee in the form of transfer of know-how and sell tomorrow.

Accounting documentation. Namely 2 financial plans. Why 2? The first one will be for future franchisees and will show how financially profitable your (their future) business is.

And in what time frame will the investment pay off (this is the document that franchisees are asked to look at first, and they will help you in its preparation professional accountant and numbers from your real business).

The second one is financial plan Your future franchise. It is here that you must calculate how much you will sell the franchise for, what royalties and lump-sum fees you will have.

Important. Majority successful franchises They make money on royalties, and not on lump-sum payments.

Just in case, a lump sum fee is a payment from the franchisee to the franchisor for purchasing a franchise. Royalties are monthly payments that the franchisee pays for using the franchise (% of turnover or a fixed amount).

1.3. Prepare standards

Designs. If you have form style, then it must be formalized not only in, but also in (guidelines for using corporate identity).

In addition, do not forget that if you have a logo that you use, you also need to register it. And in fact this is very important.

For example, one of our clients decided to package a franchise and went to register a logo, but he was refused because his worst competitor registered his logo a year ago, but for himself.

I won’t say anything about their showdown, but the fact that because of this he lost a lot of time and most of his fame (he started selling franchises with a new logo) is very important.

Works. You must have regulations job descriptions, work standards, recruitment and adaptation systems for new employees.

And this should not be in your head, but on paper. And if there are also video instructions, then that’s even better.

For some, this may seem like tinsel, but if you want to be like Ikea (a huge brand), then act like Ikea. And they have one documentation for the opening of each new store - 12 large trucks (no joke).

1.4. Prepare the system

Traffic. This will include not only and. The methods may be different.

From posting your franchise on various specialized sites like Beboss.ru, to creating Youtube channel telling about your business.

Laugh or laugh, but we have a client who has already sold more than 30 franchises, using the Youtube channel as the main way to attract clients.

Sales department. The site and traffic create leads (applications), and then your employees must process them and turn them into real buyers.

And put a man in jail with the words “I gave you a fishing rod and the sea. And you sell” won’t work. You need to do it for them, write it and familiarize them with all the above-created developments.

Step 4. Optimization

If you spend more to attract one client than you earn from the franchise, then something is wrong.

This is exactly what happened to the well-known network fast food McDonalds, until founder Ray Kroc met a financial advisor and he decided to optimize the approach.

You can find all these details in the film “The Founder”, where the path to creating this franchise is described in some detail and reliably.

In tracking how much money you spend on attracting and how much you earn, you will be helped by:, and.

Of course, these tools must be used in ordinary business, but when starting a franchise, they are simply mandatory, since the cost of attracting a client is much higher, which means the cost of an error is also high.

The optimization process is not just long, it is eternal. There are hundreds of reasons for this: the market is changing, new competitors are entering, advertising channels are becoming obsolete, the field is becoming less popular (or vice versa), and so on.

Therefore, when starting to create a franchise, you must be aware that you are starting a new business.

Step 5: Scaling

Have you sold your first franchise? I congratulate you! You've recouped the money to create it. The next sale will pay back the money spent on advertising it.

And with the growth of sold franchises, you will need not only your own sales department, but also a training center.

Or even a dedicated marketer who will constantly refine and improve marketing materials and attract clients to sell the franchise.

For example, our client has a staff of 5 people maintaining more than 30 franchises. It consists of a marketer, HR, programmer, 2 curators.

And this is not counting outsourced specialists and sales managers. Of course, your positions may be completely different, but they will definitely need a separate office.

In an ideal picture of the world, this is when all processes will take place only from your head office.

Thus, although your responsibility for the result of each franchisee will increase, this way you will regulate everything that everyone does, and globally everything will look like a single organism, and not like some are in the forest, some are for firewood.

BRIEFLY ABOUT THE MAIN THINGS

One of our clients, before contacting us, acted rather unusually, namely, in order to figure out what a real franchise was, he bought it from a very well-known company in the bakery sector.

So he decided to see what kind of documentation they would give him, how they would help him with marketing, and at the same time open a second unpretentious business.

What he saw amazed him. Or rather, I was struck by the complete absence of everything.

All that was given to him were recipes, contacts of suppliers and a minimum amount of equipment.

As a result, he somehow sold this business at a loss, but he came to us with the words: “I don’t want to sell such a franchise, make me a good one.”

It is these words that reflect the general opinion that 60-70% of franchises sold are garbage. This is true.

Therefore, if you do not want to sell garbage, but want to make good packaging for your franchise, then be patient and have money.

According to statistics, the first franchise sold just pays for the costs of its packaging, but one is only the beginning of the journey.

Many people dream of opening their own business, but cannot decide to take such a step. The main reason for indecision is the lack of an idea and fear of risk. Therefore, franchise business is increasingly attracting the attention of newcomers. Let's understand the essence of franchising and learn about its pros and cons.

What is franchising

To understand the intricacies of franchising, you need to understand what it is. Under the foreign word lies the opportunity for any person to work under the name of the brand they like. And it doesn’t matter whose logo it is – Russian or foreign. The main thing is that the consumer knows it, and the owner gives the opportunity to make money on his name. A franchise is an agreement offered by the owner of a brand to an entrepreneur.

Franchising is very convenient - you don’t have to wait for ideological inspiration, think about advertising, ratings and demand. Everything has already been done for you. The franchisor (owner or representative of the brand) explains in detail to the franchisee (entrepreneur who signs an agreement to conduct business under a certain franchise) the intricacies of doing business. All risks, estimates have been calculated, and step-by-step instruction. This is what attracts people who have no experience, or those who tried to open something of their own, but it didn’t work out.

A franchise is an agreement offered by the owner of a brand to an entrepreneur.

Financial side

So, you are offered a ready-made case. Take it and use it. But the brand owner is ready to share not just like that, but for a certain fee. These conditions may vary for each franchisor.

What you must pay the franchisor:

1. Lump sum payment.

This is the initial payment that is required to enter into a contract. This is a kind of brand rental fee or membership fee. Sometimes these contributions are so large that a novice entrepreneur simply cannot afford the amount.

2. Royalties.

The monthly payment is in favor of the owner and it depends on the percentage of the franchisee’s income. In other words, an entrepreneur needs to pay a kind of profit tax to the brand owner every month for the opportunity to receive income.

But not all franchise forms include these concepts. It all depends on the specific case. Some companies only charge a lump sum fee, while for others it is zero and the franchisee only pays royalties. But it also happens that the brand owner demands payment of both a lump sum fee and a royalty. Therefore, it is worth assessing your capabilities in advance so that you do not have to take off your rose-colored glasses at a certain moment.

There is, of course, another way to open a franchise business - without investment. The principles of a franchise without investment are that an entrepreneur claiming such a right must convince the owners trademark The point is that his candidacy will improve performance, but this is a lot of work. Only in rare cases does the franchisor become an investor for the franchisee.

The franchisee must pay a lump sum fee and royalty to the brand owner.

Pros and cons of a franchise

In this direction, as in any other type of business, there are advantages and disadvantages that need to be known in advance. Creating a franchise is a serious work aimed at regulating the relationship between the brand owner and the tenant.

pros

1. Fame trademark.

The popularity of the company inspires consumer confidence. There is no need for promotion or PR. Seeing a familiar name, the client will come on his own, and not out of curiosity, but to purchase a product or service. Onlookers who do not belong to the required contingent will be bypassed.

2. Business support.

The franchisee will never be left without attention, necessary instructions and training. For any reason, you can contact a specialist. At the first stage, assistance is provided even in the design of the room, if required by the brand. In another type of business, a beginner will have to solve all the issues on his own.

3. Guarantee to the bank.

If you have a desire to open a business, but there are not enough funds, then you need to go to the bank, but it happens to a beginning entrepreneur. When choosing a franchise, the brand owner will support you; he will guarantee the return of the loan funds to the bank. Agree that it is safer to provide funds for an already established business than to later look for a bankrupt client.

Minuses

1. Harsh conditions.

It is necessary to work according to certain conditions, which are dictated by the owner. Deviation from even one point may result in fines being imposed on the brand tenant or termination of the franchise.

2. The rights of the franchisee extend only in accordance with the signed agreement.

If the brand suffers losses or goes completely bankrupt, then the entrepreneur who leases the right to work under this brand will have to fold, no matter how well things are going for him. The fact is that if the supplier of a product or equipment disappears, the supply of what the franchisee depends on stops. The risks are high, especially if you do not study the economic side of the prospective partner.

It is also worth paying attention to what conditions the brand owner dictates when terminating the contract. There are situations when an entrepreneur is not satisfied with a new business only after the project has been launched or other circumstances have arisen to close the business. But some types of franchises strictly stipulate that they have the right to sell your department to another entrepreneur at a lower price.

The rights of the franchisee extend only in accordance with the signed agreement.

3. Limitations in the choice of suppliers.

You can only purchase equipment or raw materials from certain individuals, which may be disadvantageous based on location. Attempts to circumvent this clause will result in termination of the contract.

4. Expenses.

Do not forget that all expenses for registering a business, purchasing premises for work, purchasing goods, equipment or raw materials remain on your shoulders.

Legal regulation

When thinking about opening a franchise business, you need to study legal regulation such an agreement. Franchising in Russia is a relatively new direction in business, so laws directly related to this type of activity have not yet been adopted. For Russian business The concept of “commercial concession” is suitable, the principles of which are prescribed in Chapter 54 of the Civil Code of the Russian Federation. But it's not serious legal form, and therefore some entrepreneurs try to pass off a completely different direction in business as a franchise, having absolutely nothing to do with the brand. So it is necessary to understand that the creation of a franchise must be confirmed by a written agreement, which spells out the rights of the parties.

Franchise registration is carried out only by the department that issued the right to a certain brand to its owner. If such registration of the agreement is not made, the transaction will be considered illegal.

To eliminate all risks and surprises, you need to look at a sample contract for the brand with which you intend to cooperate. You can request it from the company or view it on the official website. Also standard contract franchise can be downloaded from websites where catalogs of companies offering franchising are compiled.

Franchise business areas

First you need to study the areas of franchising that are offered in Russia. There are a lot of varieties, because the development of franchises does not stand still. Entrepreneurs, when opening a business, very often, without trying it out on their own, start selling franchises.

Activities:

1. Retailing.

Network retail view activities. For a franchise, it is proposed to open a store that is known in many regions. For example, the familiar stores “Pyaterochka”, “Perekrestok”, “Magnit”, “L’Etoile”.

2. Catering industry.

This is a very popular type of business because food is always in demand. A successful example can be called “Subway”, “McDonald’s”, “Kroshka Potato”, various companies, offering coffee to go.

3. Production.

This is a very diverse type of franchise, which gives you the opportunity to choose a direction: in food, growing certain crops, for example, exotic flowers for flower salons. Mini-bakeries or retail outlets where production and sale of products are simultaneously carried out are becoming widespread. Example - “Russian Pies”, “Pokrovsky Bakeries”. This direction is very profitable because bread is bought every day. If there is supply that matches demand, then the type of production is chosen correctly.

4. Products for children.

Toys, food and baby care products. In this case, you need to study the competition in your city or other locality so as not to remain at a loss.

5. Clothes and shoes.

Products from well-known and not so well-known brands also provide great opportunities for choosing the direction of franchise business development.

6. Products for women or men.

These can be specific attributes: jewelry, watches, spare parts for certain brands of cars.

A more complete classification of types of franchising in Russia is available on specialized websites that provide similar information. In the franchise directory, you can select various companies and receive information about ratings and reviews from existing franchisees.

To purchase a franchise, you first need to register an individual entrepreneur. Franchise activities are only permitted commercial organizations or individual entrepreneurs. Individual Can't do business without registration.

To purchase a franchise, you first need to register an individual entrepreneur.

First, study the situation in your city. It is possible that the type of activity you are interested in is already present on the market. Next, evaluate your financial capabilities, because any business requires investments. If the costs of a lump sum contribution are excluded, you will still have to spend money on premises, the purchase of goods or raw materials, equipment. Think about whether your responsibility to your consumer and partner scares you. Letting down a respected product brand means losing profits. Therefore, carefully study your responsibilities before signing the contract. Don't forget about statistics. Statistics is important parameter, which can be the main one when a businessman makes a choice in favor of a certain form of franchise.

Think about what the payback period for your investment might be. To do this, you need to talk to those entrepreneurs who are already in business to understand which technology works 100%. Although the owner of the trademark provides detailed reports and a business project, it is necessary to take into account not only the central regions of Russia, but also the outback, because the incomes of the population are different.

Let's give an example. The entrepreneur decided to expand his activities. I saw that there were few luxury furniture showrooms in the city and chose a narrow direction - kitchen furniture. I chose the Maria Kitchens brand as a partner. Spent it on rent retail space, where the main samples of the factory should be located, and purchased samples. The brand owner gave a big discount on exhibition kits, but made demands that showroom samples not be sold for a certain period. The entrepreneur also thought that he would need funds to spend on computers with the factory’s design program, but they were also provided for free. After staff were hired and trained by the manufacturer, the salon began operations. But, despite the fact that preparations for the opening of the salon were successful, there are no clients. And all because the entrepreneur did not take into account that the cost of a set from the Maria’s Kitchen brand is at least 100,000 rubles. This is practically inaccessible to the bulk of consumers in the region, where the average salary is only 20,000 rubles. It’s a completely different matter when the salon is opened in a big city, where there are more people with high incomes.

Terminating an agreement that has already been signed can lead to serious problems. To avoid problems, preparation must be very thorough. In order to check the reliability of the chosen direction, you need to find contacts where you can contact representatives. If the site only has a form where you can write a message and wait for a response, you should not deal with this company.

In order to check the reliability of the chosen direction, you need to find contacts where you can contact representatives.

Summarize

At least franchising as a type entrepreneurial activity For Russia, this is a new concept, but it is gaining momentum rapidly. The pros and cons of such a business are already obvious; there is experience that entrepreneurs share with each other in order to avoid serious mistakes.

The choice of type of activity is very large. If you study the main types of franchises, you can choose something that will bring not only income, but also pleasure. There is no serious regulation of the process by regulatory authorities, but with the support of an experienced lawyer, pitfalls in the agreement can be eliminated.

Having considered the main aspects of running a franchise business, we can only say one thing: if there are no ideas for developing your own direction, then it is worth using the experience of those who have reached great heights and gained respect from the consumer.

Franchising is considered one of the most successful forms of entrepreneurship, in which commercial activity is based on the acquisition of rights to use a trademark and a ready-made business plan.

What does it take to open a franchise?

Opening a franchise requires some funding. To start your own business, you will need start-up capital to cover the current costs of concluding a contract and making initial contributions. possible using own funds, government subsidy or bank loan.

Interesting fact: many banks are willing to help entrepreneurs open a franchise business and provide the necessary cash. Lending to franchise systems has the lowest degree of risk and is more secure than providing other loans to small businesses.

To open a franchise business, you will first need to select the legal form of the enterprise and register with the Federal Tax Service.

The next step is to make a one-time lump sum contribution. This amount covers the cost of using the trademark or brand for a pre-agreed period.

The lump sum fee consists of the current costs that the franchisor will incur when providing and registering a franchise for the second party.

The cost of the lump sum payment will depend on:

  • degree of support and concept of the franchising system;
  • brand fame and popularity;
  • conducting marketing research and developing a current business strategy;
  • rental and arrangement of premises.

Additionally, the signed agreement will indicate the amount and terms of regular periodic payment for the use of intellectual property. These payments are designated “royalties” and can be paid according to two conceptual schemes:

  • as a percentage of gross profit;
  • in the form of a fixed amount.

How much does it cost to open a franchise?

The cost of purchasing such a project will directly depend on the brand’s popularity and its position in the market. Of the entire list of things that can be opened as a franchise, the most popular and profitable are fast food establishments and chains of fashion stores.

The lump sum amount for average franchises starts from 150,000 rubles. For comparison, the cost of an Adidas franchise is $20,000, and the popular coffee chain StarBucks will cost $150,000. Each franchisor sets its own financial level, based on the franchisee’s possible profit and economic effect for the owner of the trademark.

Is it worth opening a franchise?

Franchising as a form commercial activities, is the most cost-effective and effective way running a small business. Both parties to the agreement receive favorable conditions for their development. Franchisor as owner own brand, acquires the opportunity to open new markets and attract new customers to its products.

Meanwhile, the franchisee receives a ready-made operating scheme for opening a business, as well as active support from the franchisor and assistance in resolving strategically important issues.

To avoid mistakes when opening a franchise, we recommend watching the following video:

Franchise business is becoming more and more relevant, and for good reason. It is noteworthy that this option is chosen by both beginners and experienced entrepreneurs, and this is logical. The former do not want to bother with the development of advertising materials, organizational and documentary details, and the latter, in turn, have already “hit their mark” in previous types of activities and understand perfectly well that it is better to invest their money in a proven business scheme that has been successfully operating for many years in a row. .

There are a lot of offers on the franchise market today, and at the moment there are several hundred of them in Russia. It is only important to study very carefully what interests you most, since there are also little-known and sometimes simply absurd ones.

Moreover, we are talking about Moscow, where there is a lot of competition and, perhaps, branches under a certain brand have already been opened. However, sometimes franchisors allow this type of business, because it is profitable for them to expand it.

How to choose a suitable franchise for Moscow?

Ideally, if you are already familiar with a specific type of business and know well all its pros and cons. If practical experience no, then you need to study as much information as possible about the franchisor. For example, first, visit the office (store) of a company under the guise of a client, see how it all looks in reality. You may be able to talk to franchisees who are already working under this brand. Read reviews about the franchise, find out how many branches are open for it. As a rule, dozens or even hundreds of franchisees operate under the name of developed and successful companies, because profitable business stable and worked out to the smallest detail.

In the end, think about what exactly you like, and in the most free form. Do you like coffee or sweets? Then you will be able to open a cafe or coffee shop with great success and pleasure. Do you like to draw or are you interested? Today there are more than enough franchises in these niches.

In the case of Moscow, choosing a franchise is generally very easy, because here there are both elite areas with wealthy residents and peripheral places where budget goods and services will be in better demand among the local population.

Essentially, any type of business can be franchised, and this is often one of the goals of any experienced entrepreneur. Expanding your business while receiving a good percentage and greater recognition is the best result for many businessmen.

Money to open a business in Moscow

Naturally, the choice is also influenced by the size of the budget that the entrepreneur has. It’s good if you have several million rubles in stock and you’re not afraid to lose them, but what should those who don’t have decent starting capital do? Fortunately, today there are several options for starting a business in Moscow in this regard. In particular, you can attract money from outside, for example, in the form of a subsidy or grant for business development. Credit can also be called additional opportunity, but here it is worth approaching the issue very wisely, because in this case the entrepreneur risks not only going broke, but also being left with large debts. In Moscow today there are various business incubators and assistance centers for budding entrepreneurs. Of course there is Russian capital and a lot of private investors who may be interested in a particular direction. It all depends on the profitability of the business and how the entrepreneur will present it to a potential investor.

Advantages of a franchise business in Moscow

Moscow is exactly the city where people more often look at the brand than at the price. It is quite natural that there are already fans of this or that brand (company), so finding target audience It’s very easy for a franchise business here. Surely, in a certain area there are people who are forced to travel to the other end of the city in order to taste their favorite signature dish or, for example, buy clothes from their favorite brand. Naturally, they will be very happy if a company store or favorite coffee shop opens in their area. Moscow, as you know, is a very large city, so you don’t always want to stand in traffic jams or take the metro to get to your destination.

By purchasing a franchise, an entrepreneur joins trading network or becomes a representative of the company that provides him with full consulting, marketing and legal support. Equipment is provided, and sometimes assistance is provided in selecting premises and personnel.

By opening a franchise business, a person joins a business that successfully brings profit not only to the franchisor, but also to the company’s partners. Here, invaluable advice can be given on general issues, and, if possible, you can exchange experiences with other franchisees. This is definitely better than getting into an unfamiliar type of business without any support.

When working as a franchise, an entrepreneur does not need to come up with a business idea, because everything has already been worked out and tested in practice more than once. There is a clear business strategy and you just need to invest start-up capital. Today there are many franchises that are perfect for entrepreneurs without experience in business or personnel management.

A proven way to develop a business is an opportunity to save on marketing research, market analysis and study of brand popularity. If the niche is in demand, then the profitability of the business will be obvious. Some franchisors provide truthful data about expected income and payback periods. They have no reason to deceive their franchisees, because any owner large company interested in seeing his brand develop.

It is noteworthy that representatives of the franchisor can draw up an individual business plan for a specific branch - this will clearly determine all expenses. In addition, a design project can be developed point of sale and the entire cooperation scheme in the case of a franchise is usually described in detail. This will reduce many risks, which can be quite significant in any type of business.

Do not forget about the advantages of franchises in the sense that the franchisor is a reliable guarantor when receiving a loan or subsidy, because any investor or lender understands that a well-known brand is the key to stable and high income. Sometimes franchisors can officially confirm the fact of cooperation, and this is a good help in obtaining investments.

Disadvantages of a franchise business in Moscow

As sad as it may be, a franchise business also has its downsides. Moreover, if you don’t know them, you can easily “burn out” at the very early stages of work.

Probably the most significant disadvantage of any franchise is that the future of the business directly depends on the franchisor. That is, if the owner of the parent company decides to cease its activities, then the entire network will automatically be closed, regardless of the number and profitability of branches. To protect yourself from this moment, you should carefully study the terms of the franchise. In particular, some agreements directly indicate the terms of use of the franchise and talk about compensation for damages in the event that the company’s activities cease.

Do not forget about such issues as royalties and advertising fees - they are somewhat similar to loan obligations, especially since they must be fulfilled constantly and throughout the entire period of cooperation. Often these payments are a fixed amount that is paid regardless of profits, so paying royalties is not always easy. However, there are also franchises that do not imply any deductions - when buying a business, a one-time and fixed amount is paid.

The downside is also the strong dependence on the franchise owner. Obviously, there may be strict control on the part of the franchisor and the entrepreneur may sometimes feel like an employee. On the one hand, this can have a positive impact on profits, but at the same time, the franchisee will be forced to work within narrow limits, constantly reporting to the head office and unconditionally following corporate rules. In addition, dependence here also implies that the prosperity of the franchisee’s business directly depends on the demand for the brand. Consequently, if negative reviews or news about the parent company begin to appear, then a shadow will fall on all its branches, and this, again, is fraught with the loss of customers. Again, if we are talking about Moscow, then control may be stronger and attention may be greater. It is natural that all business processes here proceed much faster than in small towns.

The total investment when opening a franchise business is often greater than when starting from scratch. When buying a franchise, you will have to pay an initial fee, buy goods and various marketing materials. If you start a business on your own, these expenses may not be necessary, and in general you can save a lot, because in this case you have complete freedom of choice.

What is important to remember when opening a franchise business in Moscow?

Based on the above, we can make a fair conclusion that for a franchise it is better to choose the business that best meets the individual criteria of the entrepreneur. As we said at the very beginning, today in Russia, as well as in Moscow, hundreds of franchises operate successfully, so it is difficult to give recommendations about which one is best to choose. You should start, at a minimum, from the financial capabilities and conditions offered by the franchisor. All the nuances of such cooperation should be studied very carefully, and only then can we say that this partnership is more likely to be successful.