To create a franchise business means to enter the market under someone else's brand name, which the consumer already knows. The main advantage of franchising is that you get a “ready-made business” and avoid many of the risks associated with starting a business from scratch.
Another obvious plus is that, despite the economic crisis, the franchising industry in Russia is growing. In 2016 on Russian market There are about 1,400 franchises in operation, up 10% from last year, according to CEO magazine.
What is the best franchise to buy?
To date, the most profitable franchises are in the areas of catering and retail.
The most famous franchising chains in catering are Baskin Robins, Dodo Pizza, Subway and Stardogs. The payback of such a business varies from 9 months to 1.5 years.
The world's largest chain of eateries, Subway, has opened 644 companies in 141 cities in Russia. The franchise is growing rapidly, as it requires a minimum of resources to open one Subway point: there is no hot shop in the eateries, so they launch them economically and quickly.
Clothing, footwear and perfume stores, on the contrary, are less profitable. Given the crisis and the need for large investments, the demand for opening such a business has fallen. However, things are going well in narrower market segments - for example, fixed price stores or express pharmacies.
The fastest growing franchise in the retail sector in 2016 was the Fix Price chain of stores - it has 2050 enterprises in 723 cities of Russia (however, if we talk specifically about franchising enterprises, then Fix Price has only 250 of them). The reason for the popularity of the franchise lies in its low cost: 300 thousand rubles. Another advantage is the narrow niche that the company has occupied: Fix Price is a monopoly in Russia in the sale of goods at a fixed price.
What assistance can a partner expect from a franchisor?
Assistance from the franchisor can be expressed in consultations, staff training, equipment supply, advertising support - the list can be much longer, depending on the business area and the parameters of a particular transaction. For example, in retail As a rule, the founder helps the franchisee with the selection of a retail outlet, equipment, and staff training.
For example, the 33 Penguins ice cream store chain helps franchisees choose the location of a retail outlet, gives recommendations on window dressing and equipment selection for retail outlets, and helps train staff. The company also helps to determine the profitability of the business.
Speaking of the area Catering, then the help of the founder can go beyond the simple selection of premises. For example, the Dodo Pizza chain of pizzerias opened an entire school for franchisees and developed its own software Dodo Is, which allowed to optimize the work of 93 partners in 71 cities of Russia.
What do the numbers say?
Despite the attractiveness of some offers on the franchise market, it is important to understand that where you pay little, you earn as much. For example, opening a branch of the popular Shokoladnitsa coffee shop costs 12.5 million rubles with an annual income of 6.5 million rubles: this means that the cafe will pay off only after 2-3 years.
There are franchises that require less money for entry, and the profit in the first year of operation covers the initial expenses. On paper, the benefit in numbers looks tempting, but it is far from always embodied in reality.
The starting cost of the franchise, in addition to upfront expenses like rent retail space and hiring workers, includes lump sum- a one-time payment that the founder collects from the franchisee for the use of the trademark. In the table below, you can look at the ratio of initial expenses and revenues of popular franchises on the market.
| Field of activity | Company | Initial investment | Revenue for the year | Profit per year |
| Hotel | Holiday Inn | 315 000 000 | ||
| Marriott | 315 000 000 | |||
| Hilton | 315 000 000 | |||
| hypermarkets | carrefour | 315 000 000 | ||
| crossroads | 7 000 000 | 70 300 000 | 6 000 000 | |
| Public catering | Pyaterochka | 15 000 000 | ||
| Plantain | 94 500 000 | |||
| KFC | 157 500 000 | |||
| McDonald's | 75 600 000 | |||
| Burger King | 2 700 000 | 28 000 000 | 1 200 000 | |
| Cinnabon | 5 300 000 | 22 800 000 | 6 400 000 | |
| papa jones | 12 000 000 | |||
| chocolate girl | 12 500 000 | 38 400 000 | 6 500 000 | |
| Traveler's Coffee | 14 000 000 | 27 600 000 | 5 500 000 | |
| Clothing trade | Oji | 11 600 000 | 39 000 000 | 5 000 000 |
| InCity | 4 500 000 | 33 000 000 | 5 000 000 | |
| Sela | 4 700 000 | 20 000 000 | 5 000 000 | |
| Mascotte | 750 000 | 24 000 000 | 3 600 000 | |
| glenfield | 2 500 000 | 18 000 000 | 2 000 000 | |
| Westland | 2 500 000 | 12 000 000 | 2 300 000 | |
| Tom Tailor | 10 000 000 | 18 000 000 | 2 000 000 | |
| Tom Far | 4 500 000 | 36 000 000 | 2 800 000 | |
| Finnflare | 2 500 000 | 15 000 000 | 3 000 000 | |
| sports business | Gold's Gym | 63 000 000 | ||
| Appliances | Positronics | 5 800 000 | 60 000 000 | 6 000 000 |
A low entry fee due to the crisis is offered by many clothing and footwear retailers, for example, InCity, Sela, Finn Flare. The entry threshold has been lowered as the popularity of such franchises has fallen: people have begun to spend less money on new things. Before acquiring such a franchise in a crisis, it is better to calculate all the risks.
So is it worth it to start a franchise business?
Experts and entrepreneurs interviewed " CEO', they think so. In 2014 they even turned on franchising in the top twenty promising business areas in Russia for the next 3-5 years.
However, do not think that a franchise business is easy money. Although the franchisor helps, the success of the project is 99% dependent on the conscientious work of the partner. It takes, in my experience, an average of two to four years to break even, and no one guarantees you success.
The good news is that after working on a franchise, new entrepreneurs usually learn the basics of the business and open their own business after a while. If you have such ambitions, the franchise business will be a great school.
- Calculate in advance how much you are willing to invest in the business, not counting the lump-sum fee;
- Research the company that sells the franchise (small initial investment and high income should make you doubt);
- Decide on the niche in which you want to buy a franchise. You should have at least a minimal idea about this business;
- Discuss in advance what the company will provide you: what support will be provided, for which you will be asked for an additional fee (sometimes this is not written in the contract);
- A brand is not always a guarantee of success, discuss with a partner what you will get in addition to the brand (technology, favorable conditions with contractors, equipment);
- If you buy a code, make sure it's patented;
- Carefully study the contract: especially sections with obligations and penalties;
- Before paying, be sure to ask for a project launch plan and those responsible for each stage. You must have a clear understanding of how you will launch the project after paying the franchise;
- If you are buying a foreign franchise, find out who will be localizing the project.
A businessman who does not have a large investment capital can open a franchise business by looking for an option with minimal investment. Many successful companies offer mutually beneficial cooperation, requiring low costs, with an acceptable cost of a lump-sum contribution. Ideas for choosing franchises that practice minimal investment:
- inexpensive cafes, street fast foods, coffee houses - located near business centers, educational institutions, offer fast and inexpensive food;
- legal services are in demand due to the low legal literacy of the population of Russia, minimal investment with high profitability, no costs for products, warehouse rental;
- advertising services - low cost for the same reasons, profitable even with little investment;
- creation, website promotion, development mobile applications- at the lowest price, you can buy an application constructor from the franchisor, with the help of which the franchisee creates programs for customers;
- beauty and health - haircut, manicure, teeth whitening, fitness clubs, pharmacies;
- car service - the demand for services is regular, many franchisors offer profitable cooperation;
- business to business ISO certification(quality control), temporary worker services, manufacturing plastic cards, stamps, seals, courier delivery - services are in demand, investments in franchising are minimal.
Profitability, success of cooperation under the franchising scheme does not always depend on the cost of expenses. It is more important to optimally allocate costs, determine priorities, analyze the market of a particular region of Russia.
The franchise of a company offering a product (service) in demand will pay off quickly and will be profitable regardless of the size of the investment.
Each market area offers profitable franchising that requires a minimum start-up capital. It remains only to evaluate financial risks, pitfalls, take into account the specifics of the region where it is planned to do business. If the franchise price is too low, it is possible that the franchise agreement prescribes unreasonably high royalties, advertising, marketing payments - you need to carefully study the financial conditions for cooperation with the franchisor. The profitability of a business is also highly dependent on the size trade margin, commodity turnover.
Franchise of fishnets and fish shops
An assessment is being made of the income/expenditure of the population in the region of Russia where it is planned to buy a franchise. A similar operating business is analyzed. It will not be superfluous to consult experts who will help you choose the direction of franchising in accordance with the real economic situation. A comprehensive assessment of opportunities will help you win on a low cost franchise.
You should compare the cost of investing in franchising and the amount of start-up capital for self-opening using the example of a similar business.
For example, 75,000 rubles will have to be spent on opening your own online store. If the franchise is networked trading platform costs 60,000 rubles, requires royalty payments of up to 10% - such franchising is unprofitable for a junior partner.
In any case, the franchisee will promote the goods in the selected region of Russia on their own, and it will not be difficult to find contacts for wholesale suppliers of products.
But still, statistics show that it is more reliable to cooperate under the franchising scheme in Russia. More than 80% of projects have been successfully running for years, while independent business risky, often falling apart after a year and a half of existence.
Benefits of franchising with minimal investment.
Inexpensive franchising programs are a good opportunity for aspiring entrepreneurs to open a profitable business without having solid financial support. We have collected the cheapest franchises that allow you to start a business with minimal investment. The low cost of the franchise package does not mean that the business will not bring profit, on the contrary, small investments are more likely to turn around and be reimbursed. Choose the best offers and start earning.
#1: SportHero Franchise
Field of activity: sports service.
Lump sum: 50 000 rub.
Royalty: from 2% of turnover.
Initial investment: RUB 86,000
The idea of SportHero was born in England, for more than two years the company has been developing a network in Russia. SportHero is a system that helps the client find a team and a venue for sports games. Fans of team sports order services through the franchisor's website, and the franchisee forms teams, rents fields and halls, and organizes amateur tournaments. The SportHero service maintains a customer base, helps to book venues with partners, makes mailings, etc. According to the franchisor, at least half of Russian residents are interested in sports leisure services.
Partners of the company earn at the expense of a 20% margin on all services. SportHero offers three packages depending on the population of the city: "Start", "Master" and "Champion". The representative's monthly income is 50-120 thousand with investments of 86-176 thousand (including the entry fee). A fast-paying business returns investments in 4-5 months. The franchise price includes: business plan, brand book, software, personal manager and training.
Pros and Cons of Buying a Cheap Franchise
The company has accumulated European experience and takes into account the realities of Russia. Profitable business under the cheap SportHero franchise - the most The best way monetize your favorite hobby. It is available to anyone: no need to rent an office and pay salaries to staff, just a computer and Internet access. Customers of the service apply for services repeatedly and recommend it to friends. However, in the first steps, you will have to actively advertise the system.
Worth remembering! AT small town In Russia, where the incomes of residents are low, franchisees in the field of organizing sports leisure will compete with enthusiasts who do it for free.
#2: The Bantino Proviani Franchise
Field of activity: entertainment and recreation.
Lump sum: no.
Royalty: 3,000 from the 2nd month of work.
Starting investment: 100 000.
Choosing the most profitable franchises in Russia in 2017, you can see that most of them were in the lead in previous years. Some of these companies have more franchises than own enterprises. Among the most profitable franchises in Russia are catering, delivery services, brokerage and law firms, training centers and much more.
TOP 5 most profitable franchises in Russia
Entrepreneurs who are interested in developing a franchise business can work with both domestic and foreign companies, apply the scheme to find a source of financing.
It is easy to get lost among such a wide range of offers. So that everyone can find a decent option, consider the rating compiled by Forbes in terms of business profitability. The main parameter in compiling the rating is the return on investment, how much a novice businessman can earn by choosing one of the franchises. Ranking based on metrics financial efficiency in various fields. As a result, the TOP 5 most profitable franchises as follows:
Fifth place - the company "SDEK"
The company "SDEK" is an express delivery service that operates in the Russian market and requires minimal investment at the start. Field of activity – organization of cargo transportation, business correspondence, products of various categories, values in Russia and around the world.
The company offers its partners who will work on a franchise to build a profitable commercial project in a rapidly growing niche.
Franchise cost in Russia:
- - 150 thousand rubles;
- payment of royalties - 10% of income, starting from the seventh month of the company's operation;
- starting investment - 200-350 thousand rubles.
To make a decision and build approximate plan it is necessary to understand what a lump-sum contribution is and whether the entrepreneur is ready to allocate such an amount at the start.
By purchasing a CDEK franchise, a partner can count on consulting support at all stages of project implementation, the possibility of internal network resources to increase the client base, the use of CRM and ERP systems, employee training and marketing support.
Fourth place - "Miel"
The Russian real estate market, despite the crisis, continues its development. Miel is a network of real estate offices that specializes in providing brokerage services in all segments of the Russian real estate market.
Today, the company has 110 profitable and successfully operating offices, while it continues to actively develop and offers franchise cooperation.
Approximate financial aspects of buying a Miel franchise in Russia:
- lump-sum payment - 1 million rubles;
- total capital investments - 2.5 million rubles;
- profitability of the project - up to 13.2 million rubles. per month.
The volume of investments is determined by a special method based on the tariff scale of the company. The amount of royalties is calculated individually depending on the region and the scope of the territory.
By signing a franchise agreement, the partner gets the opportunity to work according to an established scheme, using a set of recommendations on all aspects of doing business in Russia.
Third place - science show "Opener"
Science show "Opener" is popular due to its novelty. The direction of Edutainment (learning combined with entertainment) has long found its admirers in the USA and Europe, in Russia it is just beginning to develop. What could be better than a bright holiday for children, which gives a lot of impressions and the opportunity to gain valuable knowledge? More and more modern parents choose just such programs instead of annoying clowns and animators. Therefore, new types of children's holidays are becoming increasingly popular in Russia.
The Otkryvashka company enables entrepreneurs to keep up with the times and conduct business in a new relevant segment.
The conditions for granting the franchise of the science show "Opener":
- initial investment - 420 thousand rubles;
- lump-sum contribution - none;
- royalties - 10 thousand rubles. monthly during the first year of work, for the second year - 15 thousand rubles, for the third and further - 20 thousand rubles. every month.
The results of work on the franchise of the Otkryvashka company:
- the average price for holding one show in Russia is 12 thousand rubles, for small town the cost is reduced to 8 thousand rubles;
- profitability from one holiday - 65-75%;
- in practice, operating companies manage to hold about 80 shows per month in big city for children of different ages (from 4 to 16 years old) and about 30 programs in a small town in Russia. This makes it possible to receive from 150 to 900 thousand rubles;
- the minimum payback period is from 1 to 3 months.
Advice: The Opener Science Show franchisor only sells one franchise per city, so if your community already has one, chances of a partnership are zero.
Second place - "Claustrophobia"
"Claustrophobia" is a company that creates quests in reality. The idea of the project is to create a new format of "indoor game". This is a combination of an interactive theatrical game and real actors, where the main characters are the clients of the room, who independently control the plot. The difference between "Claustrophobia" and other quests in Russia lies in the emphasis not on solving logical problems, but on emotionality and adrenaline.
The cost of the Claustrophobia franchise:
- initial investment - 6 million rubles;
- entrance fee - 350 thousand rubles;
- royalties, deductions for marketing - none;
- payback period - from 2 to 6 months.
First place - Tea Funny
Tea Funny- outlet for the sale of the Taiwanese drink "bubble tea" (a combination of tea with syrup, milk and jelly balls that are filled with juice).
The company offers its franchisees a proven business model that has been worked out to the smallest detail, according to which more than 450 profitable projects have been opened over the past 4 years. Of these, 346 outlets operate under franchise conditions.
The acquisition of a franchise provides for one of the Tea Funny formats:
- cafe in a separate building;
- mobile kiosk;
- modular outlet;
- a point up to 4 m² in size at the intersection of pedestrian routes, in busy places.
The cost of the franchise depends on the chosen format. On average, the cost of opening a project will be:
- capital investments - about 800 thousand rubles;
- royalties - 4% of sales;
- marketing costs - 5% of revenue.
The most profitable franchises in Russia with minimal investment
Not always even the most profitable project there is an opportunity to bring it to life, since buying a franchise is a costly business that is beyond the power of everyone.
In this case, many begin to look. In fact, there are options for cooperation with minimal investment, but remember that there will always be costs at the start.
Among the franchises with a small capital investment, there are really profitable ones that will help build a stable profitable business. But keep in mind that they will not become super profitable, at least during the first months of work. If you have large capital and want to make high profits from the first months, pay attention to.
Consider the list of the most successful franchises in Russia in 2016 that require minimal investment:
- Legal Supermarket "CVD" is a company providing a wide range of legal services. First federal network Russia working in this direction.
- iCharge is a company that operates in the field of vending and provides charging services mobile phone. The franchisee is required to find a place to install the machine and conclude an agreement; the equipment is supplied by the franchisor.
- "Orange Elephant" is a highly specialized store selling goods for children's creativity and development. The brand is popular with children aged 2-14 years.
- "Personal Solution" is a company that recruits freelancers, providing services of movers and handymen. The activity is based on a universal IT-structure for the selection, control and accounting of personnel. This allows employees to work at times that are convenient for them.
- “STRAINS IN ORDER” is a network of hairdressing salons in Russia that operates in the economy segment. The skillful combination of low prices and quality service makes this company successful and in demand among the general population. The concept of the company is aimed at residents of Russia who receive an average or below average income. Clients are provided with qualified hairdressers, modern equipment and materials, pleasant interior. A stable client base is being formed and one hundred percent workload for each hairdresser.
- "Championika" - a network of football schools for children aged 4-7 years. The program is based on the training system of the German Football Association. The methodology of conducting classes is approved by child psychologists and football experts. The chosen niche is interesting and new for most regions of Russia, due to which it always has a stable demand.
- "Sletat.ru" - travel agencies, whose activities are based on an innovative approach. The company's developers decided to reduce prices for most tours and automate the full cycle of service provision.
- "Fan-Chulan" - a network of art studios for children. It is a place where a child can spend time cognitively and usefully under the supervision of a teacher, while his parents are busy going about their business. Unlike the usual labyrinths that work on the same principle, the studios testify to safety, as children will spend time under the supervision of experienced teachers.
- Oldboy Barbershop is a network of men's hairdressers with its own philosophy and standards. is not just a barber shop, it is a whole philosophy, a real men's club.
- Sushi Food is an Asian cuisine and fast food store operating in the takeaway segment. Mobility, flexibility, a democratic franchise agreement, short payback periods make this company relevant for development both in a metropolis and in a small town.
Franchise cost and payback period (approximate data obtained based on an analysis of existing enterprises):
|
Name of the franchisor |
The size of the initial investment |
Payback periods |
| Legal Supermarket "CVD" | 230-440 thousand rubles | up to 6 months |
| iCharge | from 35 thousand rubles | from 1 month |
| "Orange Elephant" | 365 thousand rubles | 4-6 months |
| "Personal Solution" | 179-599 thousand rubles | 2-5 months |
| "STRAINS ARE OK" | 299-500 thousand rubles | 4-6 months |
| "Champion" | 220 thousand - 1.5 million rubles. | from 4 months |
| "Make.ru" | 390-800 thousand rubles | 3-7 months |
| "Fan-Chulan" | 300-700 thousand rubles | 4-7 months |
| oldboy barbershop | from 750 thousand rubles | 6-8 months |
| "Sushi Food" | 499-700 thousand rubles | from 3.5 months |
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As you can see, today in Russia there are many options to open a franchise business, and in various fields. To make a decision, it is necessary to make a deep analysis of the selected region. Perhaps the catering segment has long been satiated, and the provision of legal services will be in demand and successful. The main thing is that some of the risks that young entrepreneurs face at the start can be minimized by detailed instructions from the franchisor, comprehensive support, the ability to work on behalf of famous brand which enjoys a good reputation.
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