Franchising to open your own business. How to open a franchise business: step-by-step instructions

Both experienced entrepreneurs and beginners choose between opening a franchise store and their own business plan. The main advantages and disadvantages are considered using the example of the 3 most popular retail franchisors in Russia: Pyaterochka, Perekrestok and METRO's Fasol.

How to open a franchise store

Basic terms and concepts you need to know to open a franchise store.

Before choosing a partner, you need to evaluate your strengths. The franchisor will require compliance with a number of conditions stipulated in the contract. In case of non-compliance - sanctions.

Experienced entrepreneurs choose according to marketing packaging, get acquainted with the conditions, and make a purchasing decision only after carefully reading the cooperation documents. You can ask a lawyer for help.

Franchise VS independent opening

By opening a franchise store, a businessman saves time and effort, but not money. He gets a proven business model. This is convenient for those who are not launching their first project, and, for example, in order not to depend on one direction, choose another, little familiar one.

The lump-sum contribution pays for the time that the entrepreneur would have spent identifying the nuances. However, experienced businessmen do not perceive requirements and rigid boundaries well.

Franchises protect inexperienced entrepreneurs from mistakes and teach them the basics of company management. The mentor guides and supports the junior partner, preventing him from making big mistakes. At the same time, the business is constrained by the ideas and plans of the franchise owner.

For those who are tired of hired work and the dictates of their superiors, independent opening is suitable. In this case, the entrepreneur is a creator. Creates its own unique business mechanism. Saves 30% of capital and spends 1.5 times more time.

Rice. 2. Sample display in the Krasny Pishevik store

Advantages and disadvantages

Advantages:

1. The franchise buyer receives guaranteed assistance from his franchisee. Consultation is valuable because the franchise seller is continually calibrating the terms of his product and business format. Learns from his own and partners' mistakes. Implements changes. Guides a novice entrepreneur to the first result.
2. There is no need to come up with new ideas and development strategies. All you need is basic knowledge in the area the franchisee chooses.
3. Before opening a franchise store, you already have an idea of ​​the popularity of the product and the promotion of the brand. Niche testing and loss of testing resources are not necessary. Reducing marketing costs.
4. There are cases of obtaining a loan to finance the start-up capital of a junior partner. The collateral for such loans is the property of the senior partner and a guarantee. Otherwise, it is impossible to get money from the bank for a startup.
5. The franchisee receives a detailed business plan. Profitability and initial costs were calculated. The payback period and return on investment are clear.
6. Large franchises limit the number of partners per locality. This partially removes dependence on competitors.
7. Advertising support. The franchise founder conducts advertising campaigns and brand promotion at his own expense. This gives recognition to the network of its stores in each city.
8. Ready databases of suppliers, goods, contractors.

Disadvantages that lead to failure or force a novice businessman to refuse to buy a franchise:

1. Dependence of the business on the franchise founder. The development strategy remains in the hands of the brand owner.
2. Initial requirements when opening a franchise store. Renovation of the premises in the chosen style, uniform of sellers, amount of initial investment.
3. Dependence on the state of affairs of the entire network on the market. The actions of other partners or the franchise owner can affect the reputation of the network. Poor service or products will drive consumers away from the brand.
4. The price includes profitability for the franchise seller. Costs of advertising, personnel, communications, etc. increase the price. A business in which the product is a business also has profitability and markup. In other words, a similar project will cost 25-30% less if you enter the market yourself.
5. Periodic royalty payments. They reduce profitability for the store owner.
6. The agreement establishes the rights and obligations of the parties. If the parties deviate from the agreement, they incur additional costs and fines.

Opening stages. Step by step plan.

Review of three retail franchises

Reference. Reverse franchising is a type of business activity in which periodic payments are received by the person who bought the franchise. The buyer is an investor. The franchise seller opens a subsidiary at the expense of the buyer.

Bottom line. The advantage of opening a franchise store is information support. A novice businessman follows a well-trodden path, and the senior partner, interested in his development and profit, tries in every possible way to protect the “junior” from problems and dangers.

Large franchisors provide round-the-clock support, hold meetings and conferences, introduce innovations, and share document templates and best practices in business processes.

Franchising differs from other ways of doing business in that 90 out of 100 franchised businesses not only survive for more than one year, but also operate at a profit. By comparison, only 15 out of 100 innovation-related startups make it to the end of their first year. Although 7 of them subsequently achieve crazy profits, the probability of ruin is 85%. Opening a franchise business means acting reliably - the enterprise will bring not fantastic, but good profits, and guarantee financial stability.

Where to look for franchise offers

In which area to open your own business?

One of the trends in the franchising market in recent years is an increase in offers from Russian companies.
Franchises of cafes and restaurants, especially fast food establishments, remain the most popular options.
The second place is occupied by franchises of goods and services for children. The number of offers in the sports, beauty and health categories increased by a third.
A proven option is to open a medical laboratory where you can quickly get tested.
There's been a little less focus on options in food and household goods retailing.

It is important to know! Lost positions for Last year franchises of clothing, shoes and jewelry - the growth of enterprises in these segments decreased by 45%.

Assessing supply and demand in the selected niche

Before you open a business, it is important to decide where your enterprise will operate. Big city or small? Assess the purchasing power of the population - if people earn little, they will not be able to afford an expensive boutique or an elite restaurant. Determine the size of your target audience. If the number of potential customers is less than 2% of the number of people living near the enterprise, the profitability of the business is in danger.

It is a risky undertaking to open a business in a small town that requires highly qualified specialists. As a rule, they quickly leave for big cities. In a small town, you need to carefully monitor your reputation because information spreads quickly.

Mining gold from sand at home: technology, subtleties and business risks

On the other hand, a big city means expensive rent, high salaries, fierce competition, including for promising premises, and additional advertising costs. Without huge investments, it is impossible to obtain exclusive rights and defeat competitors.

What business is better to open in a small town:

• economy class hairdresser;
• sushi shop;
• children's development center;
• casual inexpensive clothing store.

How much does it cost to open a franchise business: financial assessment

The amount of starting investment is the cost of rent, design project, renovation of premises, purchase of equipment and/or products, personnel training, marketing. When purchasing a franchise, these costs will be halved. The franchising program, as a rule, includes: a design project for the premises, employee training, a brand book with layouts of advertising materials and much more. For this support, the future partner must pay a lump sum fee - a one-time payment for the right to work under the franchise. It amounts to up to 10% of the cost of starting a business. There are programs without a lump sum payment, when the starting payment, as a rule, is included in the mandatory purchase of a minimum batch of goods or equipment.

Franchising also includes operational support for the partner from the program owner - expenses for brand advertising, research, regular consultations, and assessment of the enterprise’s effectiveness. For support, the franchisee pays a royalty - a payment every month in the form of a certain amount or percentage of turnover/profit. As with a lump sum fee, royalties can be in the form of monthly product purchases or advertising royalties.

• inexpensive sweet fast food (waffles), take-out coffee shop;
• legal consultation;
• advertising services;
• business to business, for example, certification services;
• tourist agency;
• sale of plastic cards.

Proposal analysis and negotiations

Important! If there is no franchise offer on the company's official website, it does not exist. The company develops the network independently.

Franchises you shouldn't mess with:

1. Fakes. Fraudsters copy elements of a well-known brand and create a similar offer. A naive entrepreneur enters into a deal with the intention of opening a franchise business. Not only does the counterfeit have nothing to do with the famous brand, but its real owner can sue the franchisee.
   Examples of such franchises: ZaraZara, Eurosvyaz, etc.
2. Ephemera. An offer, very tempting on paper, is created with one purpose - to sell it and disappear into the distance. To avoid falling for the trick, look at the creation date of the franchisor company and the start date of franchise sales. If the company and trademark were registered almost yesterday, refuse.
3. Not ready franchises. This is an offer from a young company that does business honestly, but does not yet have experience, proven business processes and normal support. The company itself may soon go out of business, and with it the franchising program.

Important tip!

Do not use the franchisee business plan that the brand owner created.
In the USA, by the way, it is prohibited by law to guarantee specific income to a franchise partner.

It is useful for a future franchisee to research the market and make calculations himself. Often the goal of a company's franchising division is to sell more offerings, and profitability figures may be overly optimistic. Do not take the franchisor's promises for granted - check the information.

What animals are most profitable to breed at home?

A future partner should communicate not only with company employees, but with other franchisees. It would be a good idea to come to the site and see how the enterprise operates. Reviews from franchisees - current and former - will help you make the right decision. If the owner hides the contacts and location of his franchisees, opening a partnership business with him is a bad idea.

Signing an agreement with the brand owner

When an entrepreneur is ready to buy a franchise and open a business, the parties enter into an agreement. There is no franchising agreement in the legislation of the Russian Federation; cooperation should be regulated by a commercial concession agreement. According to statistics, only a fifth of all franchisors offer such an agreement to partners. However, if you are given a contract for supply or information services to sign, this is a reason to doubt whether the relationship between the parties is franchising.

The future partner needs to check the registration of the franchisor's trademark with Rospatent. The document specifies the rights and obligations of the parties and payment terms. A deferred payment may be granted for the payment of the lump sum contribution. Check the validity period of the contract. For example, Subway enters into a QC agreement for 20 years. But most owners prefer a period of 3 years. That is, by the time the franchisee begins to receive the greatest profit, the agreement will come to an end.

Many people dream of opening their own business, but cannot decide to take such a step. The main reason for indecisiveness 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 applying for such a right must convince the owners of the trademark 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. Brand awareness.

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 under certain conditions 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 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 direction in 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.

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, a standard franchise agreement 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 type of activity. 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. Successful examples include Subway, McDonald's, Kroshka Potato, and 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 another 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. Conducting franchise activities is permitted only to commercial organizations or individual entrepreneurs. Individual Cannot 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 are an important parameter that 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. I spent money on renting a 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.

Termination of an already signed agreement may result in 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

Although franchising as a type of business activity is a new concept for Russia, 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.

A comprehensive right to use a trademark or brand, as well as technology, business practices, and other forms of intellectual property, that one company sells to another for the purpose of expanding its network. The franchise price consists of a lump sum (basic payment) and royalties (monthly payments).

According to the rules of franchising, the franchisor company (selling the right) undertakes to research the market in your locality and make a conclusion whether the business will be successful for the franchisee (the party buying the right). However, many companies (especially if there is a large lump-sum payment in the contract), trying to quickly get their profits, may deliberately not notify you of low demand for products or services. Therefore, before you buy a franchise, you must independently study the product you are interested in and conduct an analysis of the market and target audience.

What are the types of franchises?

Based on the type of activity, there are three main groups of franchises:

1. Production- production of products according to company standards and under its brand. With this form of cooperation, the franchisor must provide you with all technological sequences and provide a list of suppliers of raw materials and equipment to equip the production complex.
2. Trade- sale of branded goods produced by partners identified by the franchisor. With such cooperation, the franchisor determines from whom you will purchase the goods and at what cost to sell them, chooses where the store will be located and what size it should be.
3. Services- provision of services under the company brand. The franchisor must provide you with instructions on the procedure and conditions for the provision of services, as well as train hired personnel.

According to the form of implementation, a franchise can be of two types:

1. Straight- transfer of the right to open one or more representative offices in the region. Such franchises do not require large investments and make it easy to enter the market.
2. Master franchise- transfer of exclusive rights to all representative offices in the region. By purchasing such a franchise, you will be protected from the possibility that other companies will open in your region using a similar model.

Depending on the terms of the contract, the following types of franchises are also distinguished:

• Standard- the franchisor controls all stages of the company’s activities and does not allow deviations from the standards it has adopted. This format is suitable for beginning entrepreneurs because it allows you to avoid many mistakes.
• Free- the rules of operation of the franchisee's enterprise are established conditionally. This franchise is suitable for experienced investors whose main goal is to quickly enter the market.
• With replacement- technologies and work methods are established by the franchisor, but you can choose suppliers yourself. This format is convenient for manufacturing enterprises in remote regions.
• Ready-made company- the franchisor opens a representative office, fully dealing with organizational issues, and then sells or leases it to the franchisee with the subsequent payment of royalties. This model requires a high initial investment in the business, but it is also the simplest method that begins to generate profits in the shortest possible time.

How to choose the right franchise

Once you have decided on the direction and type of goods or services, you should begin searching for suitable offers. To do this, you can conduct independent market research or use online catalogs (franch.biz, franshiza.ru, beboss.ru, greens-idea.com). To choose a reliable franchise, the following instructions will be useful to you:

• When choosing a direction, pay attention to the cost of the franchise. The latter includes a lump sum fee and royalties, which are paid for the right to use the trademark and business model, but do not imply the costs of equipment, rent and the first purchase of goods or raw materials. This means that an inexpensive franchise business for the production of goods may require much more investment than trade or services with a large lump sum, since it requires additional investments.
• When choosing a specific product or service, research the competition in your area. If it is high, even the most reliable franchise may not be a profitable investment.
• Select several offers in your area and compare the conditions.
• Study the history of each company and personally visit existing representative offices in your and neighboring regions. If the company is very young (it must be at least 5 years old) and does not have its own divisions, most likely you have an unreliable partner.
• Analyze reviews of customers who buy goods or services produced by selected franchises. The product or service must be real and in demand on the market.
• Negotiate with entrepreneurs from neighboring regions (to avoid conflicts of interest, it is better not to contact representatives in your region) operating under this franchise. Find out the advantages and disadvantages of the business.
• Assess the level of investment in own business. If you are offered to start a business under a free franchise, in most cases this is a standard offer to supply goods for sale.

Step 2. Conclusion of an agreement with the franchisor

After the initial selection of proposals, before concluding an agreement, you need to study the features of the transaction in more detail. This requires a preliminary meeting with representatives of the franchisor company and obtaining legal advice on the proposed agreement.

How to conduct preliminary negotiations

The first meeting with the franchisor is usually held in the office or in a coworking center if the company does not have a representative office in your region. If you are invited to a cafe, most likely you are dealing with a fictitious or unprofitable franchise. An exception may be when the meeting is scheduled at a cafe whose franchise you are purchasing.

If you are a new entrepreneur, if possible, bring an experienced business consultant with you to the meeting. You should ask the franchisor for the following points:

• Availability and timing of copyright registration for a trademark. There are often cases when the franchisor sells the rights to a brand that is not registered or the ownership rights expire before the end of the contract with the franchisee.
• Amount and payment schedule. You must be provided with details of the lump sum and royalties in local currency. If amounts are given in convertible currencies, the exchange rate must be specified. Royalties can be a fixed amount or expressed as a percentage. Sometimes royalties are tied to the volume of the enterprise (for example, to the area of ​​the sales floor).
• Organizational expenses. To attract franchisees, many companies make a minimal lump sum contribution or do not include it at all in the contract. On the other hand, it very often turns out that in this case the franchisees are charged with the costs of creating design projects for outlets (stores, offices), training staff, and obtaining permits.
• Choosing a business location. When going to a meeting with the franchisor, you can pre-select several locations where you would like to locate your business, but your future partner may himself offer you cost-effective options that you cannot refuse if the deal is concluded.
• Support level. Ideally, the franchisor should provide you with comprehensive assistance and advice until the business reaches the desired level. But many companies provide virtually no support during the period of business formation, which can be a decisive factor for beginners.
• Level of control. You need to know how strict the rules are for the franchise you are interested in, and also determine the boundaries of making your own decisions (what you can change and what you cannot). This applies to the procurement of equipment, raw materials, goods, as well as pricing and overall strategy.

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 is, a “franchise without investment,” and under what conditions they can offer you a 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 beloved relative, a car mechanic, raving about engines and memorizing internal structure 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 a well-known car repair service brand was selling franchises in the regions, Nikolai decided not to spend the next 20 years raising the necessary amount to open a car repair shop, but simply turned 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 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.

If you need help in selecting a profitable franchise or auditing the chosen one, contact me, I have extensive experience in franchising, I will be happy to help!

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 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 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 will want to take the risk of 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 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 indoors;
• equipment;
• purchase of goods;
• registration of 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.

You suddenly realized that selling ice cream the old fashioned way French recipes– is this your childhood dream and 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 into online business.

Despite public censure and discussion, online business is actually capable of generating good income. Again, this option is only suitable for those who know how or are eager to sell. Contact any branded 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". An international company from Malaysia that 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 often show remarkable cunning when we're talking about about offering someone a franchise on free terms. 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 do the installation of heated floors, interior decoration, cosmetic repairs for offices, installation 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!