What do you need to start a franchise business? Franchise Store Opening Plan and Overview of Three Grocery Franchises

Today in Russia there are hundreds of franchises, only a small part of them are really high quality

However, even a young and small company has every chance to create its own quality franchise. But for this, it is necessary to make the company's business concept really competitive, and not only at the local, but also at the federal level (we are doing an honest business, right?).

Franchising Statistics

Cafes and restaurants

Children's franchises

Retail

Market growth, number of franchises

The size of the franchising market in Russia, $ billion

distribution of franchising by investment

Up to 600,000 rubles.

up to 1,500,000 rubles

more than 1,500,000 rubles

A strong brand is 80% the success of a franchise. There are about 2-3 thousand fast food franchises all over the world. And two dozen of them account for more than 90% of franchisees. So the first thing you need to do is build your brand. At least in the region. And this means that you will have to find out what professional PR is, why such trifles as the color of the toilet brush and the thickness of the glass window are important in branding. Did you think McDonald's just became successful?

Own example

If you are selling a franchise, and you do not have your own store (cafe, office), and all your profitability layouts are taken from the ceiling, then (omit the moral question) how will you prove to potential partners that this business is successful? To get started, you must create your own enterprise. Preferably with a good profit.

make it pretty

You need to sell your franchise a little differently than that pink blouse or cheeseburger over there. This is a b-to-b product, where sales are not based on a random wow effect, and one negotiation within a deal can drag on for weeks or even months. Be patient, prepare beautiful presentations, and take your potential franchisees on field trips (if you have something to show, of course).

You are unique

If you are promoting your chain of pizzerias, then you must constantly convince people that your pizza is the most delicious (hot, big), as Fedor Ovchinnikov does. Anyone can open a simple shawarma house, you don’t need a franchise for this. In addition to high profits, people need a quality product, preferably one that stands out from a number of similar ones.

Draw up a contract carefully

Made up? Now hire lawyers to double-check and work out the contract. Now fire them and hire new ones. Everything is fine? Then you can send it to the franchisee. After all, you don’t want a trial, since it’s quite difficult to protect your rights under a commercial concession agreement in Russia.

Check and check

Don't like partners? Check them out in every possible way. Do you doubt them? Check anyway. Remember - deception is possible, and just a franchisee "burnt out" because of their mistakes will not add a good reputation to your brand.

Learn and learn again

If you are committed to serious development, then you should devote a lot of time to training your franchisees, including not only sales technologies, but also other aspects related to building a technological chain.

A great option for those who want to invest their money in a profitable business, but do not want to create a business from scratch, can be buying a franchise. Thanks to franchising, you can reduce the amount of investment and the risk of bankruptcy. The disadvantage of such a system is that the one who bought the franchise will not be completely free to act, unlike the owner of his own business.

How to buy a franchise?

Before buying a franchise, there are a number of things you need to do. Among them is the decision to be fully prepared to open a franchise enterprise in the absence of experience. You will have to choose only from those franchises where you can trust the newcomer. After considering all possible options and choosing a suitable field of activity, you should study the catalog of franchises and select several projects. Then you need to arrange meetings with representatives of the franchisors.

To make the right decision, you need to ask each of them about the history of brand development, any experience of developing a franchise network, franchise payments, investments in a franchise enterprise, requirements for its location, the content of the franchise package, requirements for partners, terms of delivery of products and whether how franchised businesses are controlled.

You also need to take the coordinates of the current franchisee and find out if he is satisfied with the support of the franchisor, the profitability of the business and the regularity of the supply of goods. If franchisors are unable to provide the above information, they should be treated with caution.

Next, you need to consult with franchising specialists and lawyers so that they can help you make an informed and informed decision. It will be necessary to resolve such legal issues as, for example, the existence of legal rights to a trademark. It is also important to discuss the franchise agreement with a lawyer.

Perhaps the most important thing to do when preparing to buy a franchise is to make sure that the available capital is enough to open a business.

It should be remembered that the amount of the declared investment does not include the costs of registering a legal entity, renting premises and salaries to staff.

It is better to stock up on funds, given that the franchise company still has a period of development and formation.

The franchisor should help in choosing the premises, because he knows best of all what location the company needs in order for it to develop successfully.

Undoubtedly, his interest in the success of the franchise enterprise is almost higher than that of the franchisee, because a closed franchise can ruin the reputation of the entire network.

See franchise offers

The first step is to analyze the market and decide which franchise is best for you. It is important to study the pros and cons of possible areas of activity. For example, to open a business that provides services, you will need the lowest costs, but too much will depend on the quality of the work of employees.

If you open a store, the investment can pay off very quickly, but only if the outlet is located in a place with good traffic, and the quality and prices of the goods are competitive.

A public catering enterprise will certainly be in demand, but still, in this case, there is a high dependence on the concept, cooking technologies, brand, professionalism and reliability of the franchisor, as well as on strict adherence to the instructions and diligence of the franchisee.

The interest of the franchise buyer in his future enterprise is also important. The whole point of starting your own business for most people is to work for yourself and for your own pleasure. Therefore, it is necessary to choose from those franchises, work with which will bring joy and will not be a burden.

Where is the franchise sale organized?

Many options for various franchises must be searched for on special franchise store sites, as well as in franchise directories, finding them using an Internet search. You can also find the information you need on the websites of franchise companies. In the first case, it is convenient to search for suitable options and compare them, and the second is suitable for those who need details about one specific franchise, and without contacting intermediaries.

Starting your own business with a quality online store franchise is the best solution for beginners:

Franchise Shop

Typically, such sites contain a catalog of franchises, where contacts are given not of franchisors, but of intermediaries (business brokers). Some owners of stores of this type also offer consulting services. The advantage of finding a franchise in a store is the convenience of a catalog. If there are certain criteria, you can set search parameters and choose the franchise you like best from those found. Minus - the lack of contacts. Intermediaries are also interested in their own benefit.

Franchise Directory

Franchisors place information about themselves in catalogs for a fee. Often these directories are not separate sites, but they are only given a section on business sites. The advantage of the franchise catalog in the presence of sellers' contacts, the disadvantage is that the choice in them is much less than in stores, because the cost of posting information is quite high.

Franchise seller website

On the website of the franchisor you can find the most complete information about its activities, technologies and products. If this information is not enough, you can contact the seller using the contacts that are also necessarily present on the site. The advantages of the company's website are in the completeness and relevance of information, as well as in the absence of intermediaries. The downside is that information on one site is given only about one franchise. To compare it with other options, you need to look for the sites of other franchisor companies.

Franchise catalog in Russia, Ukraine, Kazakhstan

An excellent catalog of franchises in Russia, Ukraine and Kazakhstan, for which a separate site is dedicated, is located at franchise4u.ru. It presents franchise options for every taste. Those who are interested in opening their own cafe, shop, cleaning company, car wash or, for example, a child development center will definitely find something suitable for themselves.

Is it possible to buy a franchise without investment?

Yes, it is possible to purchase a franchise without investment! In this case, the franchisor pays for everything. The duties of the manager include finding the best option for the premises that meets the requirements of the company, ensuring the availability of profit during the first year of operation, the preservation of profit and ensuring its growth in such a way that the investment pays off within the time period established by the contract.

When all investments pay off, the manager will no longer be just an employee, but a real franchisee, that is, he will have the right to manage the enterprise under a franchise agreement.

Each company puts forward its own requirements for candidates for such a franchise, but there are those that are present almost everywhere. They include:

• 100% return of knowledge and effort to business;
• Readiness for the fact that the work will be intense for several years;
• Mandatory desire to grow and own your business;
• Age restrictions;
• The presence of higher education;
• Knowledge of document management and administration;
• Experience in HR or sales;
• Ability to interact with officials to obtain permits;
• Ability to analyze the market, make forecasts for the future and work with products and customers;
• Honesty;
• Responsibility;
• Ability to improve the efficiency of the enterprise;
• Active position in life;
• Ability to prioritize;
• Ability to resolve stressful situations.

Another option for obtaining a franchise without investment is to attract an investor. You just need to find an investor and convince him to invest his money, as well as discuss all the terms of cooperation.

The world-famous and globally profitable McDonald's franchise is the path to true business success:

Inexpensive franchises - myth or reality?

Of course, the concept of “inexpensive” is very relative, because for many people even 50 thousand rubles is a rather large amount. In franchising, franchises worth up to 500 thousand rubles can be called inexpensive. There are indeed quite a few such franchises, but for the success of the enterprise, the franchisee will have to work constantly and very hard, with little or no rest.

Profit is also unlikely to be high, even when the investment pays off. Buying an inexpensive franchise is suitable for those who do not have enough money, but really want to open their own business. Undoubtedly, the buyer should be satisfied with the approximate future income from the business.

Best small town franchise

A great franchise option for a small town is a car service franchise. The number of cars in Russia is growing, they are expensive, and their owners know that saving on car service services can lead to serious breakdowns and further large material losses. In the regions, the number of cars per thousand inhabitants is much higher than in the capital, so residents of small towns would obviously be happy to open a car service center of a company already known in Moscow.

Franchise in St. Petersburg and Moscow

Franchising is well developed in Moscow, but recently many companies have begun to move to St. Petersburg. This is mainly due to the shortage of retail space in the capital. Enterprises are opened mainly under Russian franchises, since many foreign companies (IKEA, McDonald's) find this kind of cooperation with Russia not particularly profitable, and therefore work on their own, without franchisees. But there are many offers from Russian companies in Moscow and St. Petersburg.

INTERESTING VIDEO: “How to choose a franchisor”?

Buying a franchise is one of the most reliable ways to start your own business. It may not be the cheapest way to start a business, but with the support of the business owner, it may be the easiest way for you to start your own business.

Terms accepted worldwide:

"franchise" - franchise (or license);

"franchisor" - a company that sells a franchise (license);

"franchisee" - acquiring a franchise (license).

The essence of the franchise is quite simple. A company that has been successful in the production of certain types of goods or the provision of some services is going to expand the scope of its business activities. Instead of opening its branches in various places, this company becomes a "franchisor", i.e. it sells its business experience and established market reputation to other companies or individuals.

Franchise Search

Where can I get data on those companies that sell franchises?

You can contact directly those companies that sell their goods or services on a franchise basis.

There are about 350 such companies that offer franchises for goods and services ranging from bridal accessories to accounting and computers.

Therefore, you should not limit yourself to the possibility of buying a franchise only in the field of fast food. Although, it must be admitted, it is this area that is primarily associated with the acquisition of a franchise.

There are three main questions to ask the franchisor:

the type of goods or services that you are offered to purchase;

the availability of the necessary support manuals and operating instructions, as well as the possibility of training in handling the proposed product;

Beware of Franchisors who charge a very high price but don't really provide the support you need, as well as those who charge a reasonable price but are unable to offer you anything.

More information about franchises

Most franchises give you the exclusive right to sell goods or services in a territory you designate. It could be an entire country, or it could be a small urban area.

However, make no mistake: a franchise is not a panacea for market competition. Other companies offering products or services similar to yours may, along with you, develop commercial activities in the territory covered by the franchise you purchased.

Check to see if there are companies nearby that offer products or services similar to yours.

Ask your family members and your friends if they had any difficulties buying the goods or services you offer.

Do some market research in your chosen area. Talk to passers-by on the street and find out their opinion about the goods or services that you are going to offer.

If you are satisfied with the results of your market analysis, start thinking about questions for the franchise company.

List of questions for a franchise company

How long ago was the company established?

Can you get a list of franchise owners?

How many franchises have failed in the past?

Does the company employ people who were previously associated with liquidated or bankrupt enterprises?

How much does it cost to buy a franchise?

What is included in the price?

What is the training provided by the company?

What support will the franchisee receive from the franchisor?

Have banks ever refused to provide a loan to buy a franchise?

How does the franchisor receive money from the franchisee? Are they charged in the form of a fixed periodic fee or as a certain fee for goods supplied by the franchisor?

Will you be able to sell the franchise if you decide to go into a new type of business?

Can the franchisor provide you with any assistance in finding premises?

Can the franchisor provide his franchisee, as his business develops, with advice related to financial management?

Under what conditions can a franchise be canceled: by the franchise company and by the franchisee?

Other matters

What should you be afraid of?

Do not sign any agreements until they have been carefully reviewed by your lawyer.

Do not deposit money without first making sure that the firm you are dealing with is trustworthy.

Be especially careful if you are responsible for paying for goods supplied to you by a franchise company. Don't settle for an annual purchase of goods.

Settle for an annual fixed fee only if it takes into account the results of your business activities.

To obtain the necessary information, it is best to consult with a franchise owner who works near you, especially if he has already gained some business experience. If he does not want to communicate with you, perhaps his relationship with the franchise company is not entirely in order.

Caution should also be exercised if you suddenly notice any changes in the actions of the franchisee. If someone bought a franchise and then got rid of it, try to find out why they did it.

Now let's look at two vital issues - the premises and finances.

room

Few franchisors will offer you premises. But in any case, they will impose certain requirements. They may insist on a certain decoration of the room, the use of certain clothes. There is nothing wrong with this for you, since it will immediately be clear that you are a link in a single chain.

If you know exactly what kind of premises you need, you can contact a real estate agency. Russian newspapers and magazines have special advertising sections dedicated to buying and selling real estate.

Certain types of franchises do not require a mandatory location in the city center, since in some cases buyers do not need to come to the premises of your company. In this situation, the distance from the center can be considered a certain advantage (at least in terms of rent).

You must carefully study the area in which you will work. Do not lose sight of any vacant premises suitable for your business.

In addition, you can contact the local executive authorities. They can help you find the right place for you.

Whatever price or rent you are offered, never agree to it right away. In fact, it is almost always possible to lower the price, so be prepared to haggle.

Below is a list of requirements that may help you navigate this issue.

What kind of premises would you like to have for your business?

From a business point of view Necessary Desirable

Room area

One or multi-storey building

The size of the parking lot

Windows should face the main street

Possibility of delivery of goods by freight transport

Power supply

Gas supply

Other requirements

These are the requirements that, in your opinion, must be taken into account when developing a business associated with the purchase of a franchise. All details and requirements noted by you must be presented to the real estate agent with whom you will deal.

Finance

The main source of financing for franchising is a bank loan.

Getting a loan to buy a franchise in Russia will not be easy.

In solving this problem, a well-written business plan could be useful to you. If it is difficult for you to prepare a business plan on your own, you can contact specialists in this field.

The simplest and most common type of loans abroad is an overdraft, i.e. current account loan or current account loan. It is obtained by issuing a check or payment order for an amount exceeding the balance in the account. An overdraft loan is usually negotiated when opening an account. It allows you to receive funds within the limits not exceeding a fixed amount. In case of an overdraft, all amounts credited to the current account of the client are sent to repay the debt. Therefore, the amount of the loan changes as the funds come in, which distinguishes an overdraft from a regular loan.

This type of loan is the cheapest source of financing because you only pay interest on the loan. Please note that the overdraft is repayable on demand and you may be asked for additional personal loan guarantees.

Currently, Russian banks almost do not provide overdraft facilities. But with the development of market relations in Russia, this type of loan may be most widely used among entrepreneurs.

Another type of loan is a medium-term bank loan for a certain period, repaid monthly in the form of fixed cash payments.

This is somewhat more expensive than an overdraft loan, but in this case the bank cannot require you to immediately repay the loan. But here, too, personal guarantees of loan repayment may be required from you.

In any case, you need to go to the bank with a prepared financial plan for your business. About it just and will be discussed further.

Your business plan

If you need money to start your own business, or if you are looking to rent out some space, you must draw up a financial plan and convincingly prove that your business has a realistic chance of success.

Even if you are lucky and have the premises and the necessary funds to start your own business, you still need a business plan. It will give you the opportunity to regularly monitor the development of your business by comparing the actual results achieved with the expected ones. Therefore, if you notice that your business is developing in the wrong direction, you can make the appropriate adjustments before it's too late. You must certainly keep your business under constant control.

And now let's list those financial indicators that should be reflected in your business plan.

It should include a forecast:

sales volume in the next year;

costs associated with organizing the sale of goods;

overhead costs;

• required investment.

Sales forecast

Of course, making a sales forecast is not an easy task, especially for a novice entrepreneur. But you can ask a franchise company for help in this matter, where they will be able to realistically assess your expected financial performance based on their own accumulated practical experience.

In addition, you can talk to other franchisees offering similar products or services and find out how much sales they expect to achieve.

Be realistic in your assessments. Do not entertain yourself with the hope of achieving large sales volumes. You may have to make several attempts before you can determine the real numbers. If you have already thought about this question, try to enter the estimated sales volumes of your goods by quarter.

Direct costs of organizing the sale of goods

This indicator includes the sum of the costs associated with the purchase of materials or goods for subsequent sale.

In addition, it includes your mandatory contributions to the franchise company. Thus, this figure is directly related to the estimated sales volume.

Try to complete this table.

Overheads

Overhead costs include all other types of costs associated with your business. These are rent, insurance payment, wages of employees, transportation costs, etc.

Perhaps, at the initial stage of entrepreneurship, you will not be able to accurately determine the amount of your overhead costs. For example, you may not know the amount of rent and interest on a loan. Nevertheless, try to make a realistic forecast.

Try to come up with an overhead budget using the table below.

Profit Forecast

Your profit is the difference between your income and expenses.

Profit is calculated in two stages.

The difference between the volume of sales and the costs associated with organizing the sale of goods is called gross profit.

The difference between gross profit and overhead costs is called net profit.

Complete the profit forecast table below.

All the figures that you may need can be found in the tables that you have already filled out.

It is very useful to monitor the development of your business by comparing gross profit and net profit as a percentage of sales.

This is done in the following way:

Gross Margin = (Gross Margin / Sales) x 100

Net Profit Rate = (Net Profit / Sales Volume) x 100

Estimated investment required

To start your own business, you must find the money to buy a franchise and equipment.

This type of cash outlay is called capital investment.

You should carefully consider the issue associated with the purchase of the necessary equipment. Perhaps the cost of the equipment will be included in the purchase price of the franchise. But it is unlikely that the price will include transportation costs.

So, taking into account these remarks, try to fill in the next table.

Now you will know the amount of required capital investment in your business.

Cash Estimate

The next step is to draw up an estimate of the funds at your disposal that can be used to grow your business. Keep in mind that you have to pay for the loan, so the less you borrow, the better for you.

Perhaps you have relatives who can support you financially, however, as a rule, it is quite rare to buy a franchise without attracting borrowed funds from outside.

Complete this table:

Now calculate the amount of money you have to borrow:

Presentation of your commercial project to obtain the necessary funds

If you have a well-written business plan and a plan-prospect with a detailed description of the franchise project, prepared by the franchise company, try to apply to the bank for a loan to develop your business.

Remember, there are three things that will help convince the other party to financially support your franchise project:

confidence in success;

faith in the presented franchise project;

confidence that the money will be used for its intended purpose.

If at first you are denied a loan, do not despair immediately. Try to get money elsewhere. Remember that banks also compete with each other.

Seek help from highly qualified consultants.

You will need:

accountant - for conducting financial and tax transactions,

lawyer - specialist in the field of entrepreneurship,

real estate agent - dealing with the sale of business premises,

insurance broker - associated with commercial risk insurance.

bank manager - who can provide you with invaluable services at the initial stage of your activity.

Make sure that you fully understand the essence and terms of the franchise.

Make sure that the franchisor is a reliable company that complies with all the conditions of the franchise provided.

Do not sign any documents without reviewing them first.

Do not make any cash payments until both parties have signed the franchise agreement.

Do not fall for commercial tricks from the franchise company.

Summing up

Now you can make a decision regarding the purchase of a franchise.

Do not forget that starting your own business by buying a franchise is quite expensive. But by buying a good franchise, you thereby lay a solid foundation for your business.

Many people dream of starting their own business, but cannot decide to take such a step. The main reason for indecision is the lack of ideas and the fear of risk. Therefore, the franchise business is increasingly attracting the attention of beginners. We will 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. A foreign word hides the ability of any person to work under the name of a brand they like. And it doesn't matter whose logo it is - Russian or foreign. The main thing is that the consumer knows him, and the owner makes it possible to earn on his name. A franchise is an agreement offered by a brand owner to an entrepreneur.

Franchising is very convenient - no need to wait for ideological inspiration, think about advertising, rating and demand. Everything has already been done for you. The franchisor (owner or representative of the brand) explains in detail to the franchisee (an 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 instructions have been drawn up. This is what attracts people who do not have experience, or those who tried to discover something of their own, but did not work out.

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

Financial side

So, you are offered a finished case. Take and use. But the owner of the brand is ready to share not just like that, but for a fee. These conditions may be different for each franchisor.

What do you have to pay the franchisor:

1. Lump sum.

This is the initial payment that is required to conclude the 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. Royalty.

Monthly payment in favor of the owner and it depends on the percentage of the franchisee's income. In other words, the entrepreneur needs to pay a kind of income tax every month to the brand owner for the opportunity to generate income.

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

There is, of course, another way to open a franchise business - without investments. The principles of the no-investment franchise are that an entrepreneur who claims such a right must convince trademark owners 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 the brand owner a lump-sum fee and royalties.

Pros and cons of a franchise

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

pros

1. Brand awareness.

The popularity of the company inspires consumer confidence. There is no need for promotion, PR. Seeing a familiar name, the client will come himself, and not for the sake of curiosity, but to purchase a product or service. Onlookers who are not related to the desired 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 premises, if the brand requires it. In another type of business, a beginner will have to solve all the issues on his own.

3. Guarantee to the bank.

If there is 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 budding entrepreneur. When choosing a franchise, the owner of the brand will support you, he will guarantee the return of credit funds to the bank. Agree that it is more reliable to give funds for an already promoted business than to look for a bankrupt client later.

Minuses

1. Harsh conditions.

It is necessary to work under certain conditions that the owner dictates. Deviation from even one point is fraught with fines for the tenant of the brand or termination of the franchise.

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

If the brand suffers losses or goes bankrupt, then the entrepreneur who leases the right to work under this brand will have to wind down, no matter how well things were going for him. The fact is that if the supplier of goods 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 a new business does not suit the entrepreneur only after the project has been launched or other circumstances have arisen to close the business. But some types of franchise strictly stipulate that they have the right to sell your department to another entrepreneur at a lower price.

The rights of the franchisee are distributed only according to the signed agreement.

3. Restrictions in the choice of suppliers.

It is possible to purchase equipment or raw materials only from certain persons, which may be unprofitable by location. Attempts to circumvent this clause will result in termination of the contract.

4. Expenses.

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

Legal regulation

When thinking about starting a franchise business, it is necessary to study the legal regulation of such an agreement. Franchising in Russia is a relatively new direction in business, therefore, 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 spelled out in Chapter 54 of the Civil Code of the Russian Federation. But this is not a serious legal form, and therefore some entrepreneurs try to pass off a completely different line of business as a franchise, having absolutely nothing to do with the trademark. 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.

Registration of a franchise is carried out only by the agency that issued the right to a certain brand to its owner. If such registration of the contract is not made, then the transaction will be considered illegal.

To eliminate all risks and surprises, you need to look at a sample contract for the trade mark with which cooperation is expected. It can be requested from the company or viewed on the official website. Also, a standard franchise agreement can be downloaded from sites where catalogs of companies offering franchising are compiled.

Franchise Business Lines

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, opening a business very often, without having tested it on their own, begin to sell franchises.

Activities:

1. Retailing.

Network retail activity. For a franchise, it is proposed to open a store that is known in many regions. For example, the well-known stores Pyaterochka, Perekrestok, Magnit, L'Etoile.

2. Sphere of public catering.

This is a very popular type of business because food is always in demand. Successful examples include Subway, McDonald's, Little Potato, and various take-out coffee companies.

3. Production.

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

4. Goods 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 be at a loss.

5. Clothing and footwear.

Goods from well-known and not so famous 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 cars of certain brands.

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

To purchase a franchise, you first need to register an IP. Franchise activities are allowed only for commercial organizations or individual entrepreneurs. An individual cannot do business without registration.

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

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

Think about what the payback period might be. To do this, you need to talk with those entrepreneurs who are already in business in order to understand which technology works 100%. Although the owner of the trademark gives 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 take an example. The entrepreneur decided to expand his activities. I saw that there were few luxury furniture stores in the city and chose a narrow direction - kitchen furniture. As a partner, I chose the trademark "Kitchen Maria". I spent money on renting a retail space, where the main samples of the factory should be placed, and purchased samples. The owner of the brand gave a big discount on exhibition kits, but made demands that samples from the showroom 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 free of charge. After the staff was hired, who were trained by the manufacturer, the salon began work. But, despite the fact that the preparations for the opening of the salon were successful, there are no customers. And all because the entrepreneur did not take into account that the cost of a headset from the brand "Maria's Kitchen" 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 is a completely different matter when the salon is open in a big city, where there are more people with high incomes.

Terminating an already signed agreement can lead to serious problems. To avoid problems, the 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 do business with this company.

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

Summarize

Although franchising as a type of business activity for Russia is a new concept, 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 activities 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 the regulatory authorities, but with the support of an experienced lawyer, you can eliminate the pitfalls in the agreement.

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 you should use the experience of those who have reached great heights and received respect from the consumer.

Even a 15-year-old schoolboy knows that business is a thing that requires money. It does not matter what it is 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, at least we need a brush, washcloth, water and detergents. Agree, in both cases, the so-called start-up capital will be required.

Forget about the word "free" if you decide to dive head first into the franchise business. This does not happen from the word "generally". Even if you are already slipped a contract and sweetly promised that you can buy a franchise without investment - the first thing to do in such a situation is to dive headlong. No, not in business, but in a commercial concession agreement. Yes, yes, in the very piece of paper that the manager girl so persistently offers you.

Let's take a look at what the "no-investment franchise" beast is, and under what conditions you can be offered a free business. Go.

"Free franchise": for free and sweet vinegar?

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

Seeing that the most famous auto repair brand (SRT) sells franchises in the regions, Nikolai decided not to spend the next 20 years collecting the necessary amount to open a car repair shop, but simply turned on his head. He collected various data for a month, studied the market, and finally drew up a good business plan for opening his workshop. Since Nikolai was also smart, he did not beat investors with his plan, but turned directly to the franchisor. Nikolai understood that a service station operating under a well-known brand practically guaranteed him profit and a flow of customers.

In the article I talk about a franchise without investment. In order not to make a mistake in choosing, you need to carefully check the franchise. I have practical experience in the selection and audit of franchises, so you can contact me for help!

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

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

The above story has a fabulous/mythological character. 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 by investing in a "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 a certain percentage of royalties;
2. the presence of royalties and a lump-sum contribution, which is provided by installments;
3. the lump-sum contribution 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 is the franchise never going to be 100% free?

You can right now cross out all of the above with the franchises found on the Internet “without lump sums and royalties”. Yes, there are those 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 report that the franchisee will have to carry out a series of activities to prepare the business:

• search for premises;
• conclusion of a lease agreement;
• repair and finishing works in the premises;
• equipment;
• purchase of goods;
• registration of necessary licenses;
• preparation of documents.

What do you think, is it possible to do all this without investments? That is why such franchisors, when selling their business models, set the amounts that will be required as start-up capital. Providing funds for all this is 100% the task of the franchisee.

5 types of franchise work without investment

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

Investment is everything.

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

What will be required? Just a smart business plan. Your task is to convince a potential investor that, having invested in your franchise business, he will soon buy a private jet for himself.

Earn trust.

If you have a desire to work on a particular franchise, convince the franchisor to trust you. Get to know his business model more closely, delve into all the internal processes, show your sincere interest in his business. Experienced franchisors, as a rule, understand that for a poor entrepreneur who is ready to plow for business development 24 hours a day, the business will quickly begin to flourish and make a profit, while even a super profitable startup will wither away for an indifferent millionaire.

Become an 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 is especially true 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 on an installment plan. For example, for six months. If you managed to implement everything in 6 months, the flag is in your hands. If not to the end - please, pay the franchisor for the remaining products you have. List of franchises without investments for implementation:

• TOM FARR;
• medicine;
• Fabretti.

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

Dive into online business.

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

No lump-sum contributions.

Many franchise companies do not require lump-sum fees, in addition, they give deferrals for paying royalties. This option is ideal if the franchisor also gives the goods in installments. In this case, investments will be either minimal or not required at all.

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

The main idea of ​​franchising is that the business processes of doing business with a specific product or service are transferred to the franchisee, as well as training, the ability 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 that will slow down your income. Business options without initial investment:

1. eCosway. An international company from Malaysia that provides you with an online store. An offline point is provided to you for a fairly large turnover in business - the company pays for the rental of premises, design, utilities, and purchases 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 is also on the shoulders of the parent company. When the turnover in the business reaches a certain level, you can open your offline store, but before that you need to register as an individual entrepreneur.

What is 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 investments: 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 too stringent conditions that are almost impossible to implement.

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

Tip: before contacting "free cheese", contact the experts, talk to the owners of similar stores. It is possible that the franchisor puts unrealistic conditions in front of you, thereby dooming you to bankruptcy and endless fines.

self-confidence. Nothing destroys entrepreneurs like excessive pride and self-confidence. Even if you are 200% sure that your entire city has been dreaming of tasting sweets based on oriental motives all your life, don’t agree to sign such a franchise until you get a full-fledged study of your market from an expert point of view.

Tip: contact marketers, statistical centers. Now, when you have statistical studies, analyzes, results of opinion polls in your hands, then make a decision. At the very least, you will be able to 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 directories 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 directions are currently in use:

1. All for children. As you know, they don’t save on the “flowers of life”. Even in times of crisis, this remains one of the most profitable areas. This should include the sale of clothes, toys, the 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 do the installation of underfloor heating, interior decoration, redecoration for offices, installation of stretch ceilings and so on. In any case, if you are well versed in this, you will not lose.
3. Online store franchise (both without attachments and with attachments). The advantage of such a business model is that it covers almost all Russian cities, not limited to your city or region. You can sell almost anything. But! Experts still recommend focusing on youth needs - vapes, branded clothing, hookahs, gadget products, and so on.
4. IT technologies. Development of websites, applications, software is a very interesting and promising area. If you are good at programming codes - congratulations, you have a great opportunity to get rich in the very near future!