How to start a franchise business. Starting a franchise business: new instructions, tips, reviews Franchising start your own business

How to open a franchise: advantages and disadvantages + choice of registration form + 8 steps to opening a company in this way.

Franchising is one of the most profitable and promising ways to make money, because it allows you to use a ready-made brand.

Why is this considered an advantage?

The brand, which has existed for more than a year, has passed the test of time, is in demand among buyers, and all organizational issues and advertising moves that promote the product have already been adjusted.

It is thanks to this that aspiring entrepreneurs often wonder how to open a franchise store.

This article will help you find the answer to the question how to start a franchise business and what to look for Special attention.

But first, let's find out the weak and strengths such entrepreneurial activity.

How to open a franchise: the pros and cons of this type of activity

Benefits of a Franchise

This type of earnings has huge advantages that attract beginner businessmen:

Opening a franchise store receiving guaranteed assistance and support from the franchisor.

His advice is based not only on his own knowledge and skills, but also on the experience of other people who have already experienced the franchise business.

For start-up entrepreneurs, such assistance at the development stage is simply necessary.

To start a franchise business no need to come up with a new direction or create a strategy from scratch to bring the idea to life.

It is enough to have initial capital and some knowledge in this area of business.

Another plus is that a businessman, before opening a franchise store, aware in advance of the fame and popularity of a particular brand on the market.

An entrepreneur has the opportunity to evaluate and analyze the popularity of a product, a niche in the market, without losing their own resources.

Thanks to this, you can significantly reduce the cost of your marketing strategy.

An important fact is getting a large loan.

In this case, the franchise owner acts as a guarantor of the person who takes the loan.

In the usual case, it is almost impossible to receive a large amount from a bank without a guarantor or collateral.

Before starting a business, all entrepreneurs calculate business plan, in which often only approximately calculated:

the amount of investment to open a business;
approximate profit;
business profitability;
payback periods.

But thanks to the franchisor, a novice entrepreneur receives reliable and proven information on .

This minimizes the risk that the business will develop in the wrong direction or there will be unforeseen expenses.

Disadvantages of the idea of \u200b\u200bhow to open a franchise business

Having considered the advantages, we turn to the disadvantages that can lead to the destruction of the case even at the start, if you do not know about their existence:

growing vegetables and fruits;
cultivation and subsequent sale of flowers for specialized stores;
a bakery where products are not only manufactured, but also sold on the territory of the enterprise with the help of an additionally installed store or cafe.

A good example of the latter can serve as a trading network "Pokrovsky bakeries".

Why is this particular franchise business option successful? Few people do not know that bread is an essential commodity that is bought almost every day.

If there is a demand for production, then, accordingly, there will be a profit. So, the direction is chosen correctly!

d) Children's products.

Mixes, toys, pacifiers, and clothes, baby hygiene products - all this will be sure to be purchased by mothers for their crumbs.

But before you open a franchise in this direction, evaluate the popularity of this niche in own city so as not to start an initially unprofitable business.

e) Clothes, shoes.

These products, manufactured under the wing of recognizable brands, can also become a franchise business.

However, before the start, it is also necessary to assess the financial capabilities of the city's population. No one will buy VIP shoes or clothes if the total monthly income of the family is 60,000 rubles.

You can open a franchise store and sell accessories, Jewelry, auto parts.

The prospects for each of the directions are easily determined in your own city by analysis.

Step 2. We prepare documents

To start your business, you need to register a business.

The state provides for two forms of registration - these are IP and LLC. Let's look at the advantages and disadvantages of these types before opening a franchise:

Now consider the advantages and disadvantages, before opening a franchise store:

Advantages of LLC	Disadvantages of LLC
In court, unlike an individual entrepreneur, it will be necessary to bear responsibility only for the finances and property of the enterprise.	Requires the presence of a certain capital (at least 10,000 rubles for the authorized capital).
If the company did not work, then pay in Pension Fund do not need anything.	Strict accounting system - you will have to hire an employee or outsource the case.
The company can be called almost anything (except as prescribed by law).	Reporting is several times more than that of IP
Sold or divided at the request of the founder.	The system of penalties tax office and others government agencies much stricter than for IP.

The founder should take into account that some stores cannot be franchised as sole proprietorships. This list includes the implementation alcoholic beverages, military industry, security agencies.

Step 3. Decide on the room

The franchisor pays special attention to the choice of premises.

To open a franchise store, you must meet a number of established requirements:

advantageous location, which contributes to the successful conduct of business;
a large area of \u200b\u200bthe store in which trade will be conducted;
compliance of the interior decoration of the premises with the “spirit” of the business;
availability of space to be used as a warehouse.

Of course, finding an area that meets all the requirements of the franchisor is not easy. But if you all coped with this, then you can apply to the franchisor and hope that he will allow you to open a store under your brand.

Step 4. How to open a franchise store: conditions

If a positive response was received, the entrepreneur is informed of a number of requirements that he must fulfill.

Often, well-known brands put forward two requirements for a new business under their patronage:

payment of a monthly percentage of sales;
down payment from the entrepreneur to the brand.

This method enables the franchise founder to weed out insolvent entrepreneurs. Also, by doing so, it can prevent unjustified costs that are associated with connecting a person to a business network.

Step 5. Preparing the store for opening

After obtaining a franchise, it is necessary to make repairs in the premises under the indicated requirements and purchase the necessary equipment.

The franchisor can help with these processes by finding contractors who will carry out repairs and pointing out where equipment can be purchased at a reduced price.

Step 6. Recruitment for the store

Basically, the copyright holder himself recruits staff and trains employees according to his own developed program, while all the costs of this process are covered.

Most a prime example This is the McDonald's chain. All its employees must act according to a single brand code. And franchisors are watching this very carefully.

Step 7. Delivery of goods

An additional advantage of opening a franchise store is that all delivery issues are assigned to the franchisor.

A novice entrepreneur will only need to pay for the delivered products at the company's set price.

We bring to your attention a video on how to choose the right franchise:

Step 8 Launching the Store

The franchisor is fully interested in the fact that his business develops and generates income. Therefore, he assumes the costs of marketing and advertising, and also contributes in every possible way to the development and further promotion of the business.

In the article you received a detailed answer to the question, how to open a franchise.

It should be noted that entrepreneurial activity franchising requires more capital investment than starting your own business from scratch.

But also do not forget that the franchise minimizes the risks of financial failure and provides significant support, which is especially important for newcomers to the business world.

Useful article? Don't miss out on new ones!
Enter your e-mail and receive new articles by mail

Where to invest at interest: 5 directions
How to Become an Entrepreneur: A Beginner's Guide
How to fill out a tax return: 12 rules

01Jun

Hello! In this article, we will talk about starting a franchise business.

Today you will learn:

What are the benefits of running a franchise business?
What is the best franchise business to start.

What is a franchise

Let's start with the main thing - the definition of a franchise.

Franchise - a set of benefits that allow legal or to an individual use the company brand.

More simple:

Franchise – the right to use the brand, technology and experience famous company.

The person who buys a franchise is called a "franchisee". The franchisor is the one who grants the right to use the brand.

That is, the very concept of a franchise implies the purchase of the right to work under the name of a well-known company. At the same time, you can buy not only the brand, but also all the marketing and strategic developments that will allow you to start a business.

Also, most companies are responsible for equipment, selection of a place for doing business, development of the initial advertising plan and many other things that allow you to succeed.

It is worth talking about advertising separately. Since in most cases you buy already ready brand, then the market has already taken care of. And a developed network of franchises allows you to advertise the same product by several businessmen, which significantly reduces the cost of promotion.

The franchising system is widely used in public catering. The brightest representative is McDonald's. The company has been promoting its services on a franchise model for over 30 years.

Franchise types

Specialists subdivide several types of franchises:

classical. The most popular type of franchise in Europe. The owner pays the initial amount for the purchase of the franchise, regular contributions in the form of a % of the yield and operates under close supervision by the franchisor.
free. The most popular type of franchise in Russia. The owner gets almost complete freedom of action, an approximate business plan of action and minimal contributions. Characterized by an average down payment.
Import-substituting. Creating products that are similar to well-known brands.
Full construction. When choosing this model, the franchisor himself creates a business and transfers it to the manager for a fee. The profit is divided depending on the terms of the contract between the manager and the franchisor.
Rent. Almost the same as a turnkey business, with the only difference being that the business is leased out for a fixed period.
Master Franchise. Purchase of monopoly rights to conduct business in the region. The franchisee has the right to decide how to conduct business. He receives only general advice on how to conduct business, but under this model, intervention from the company will be minimal.
Corporate. The owner simply creates under the name of a well-known brand, but makes most of the decisions on his own. The franchisor can only tell him his suppliers, the main activities of the company and the range. The businessman himself is responsible for everything else.

The chosen type of franchise will depend on the number, experience and aspirations of the franchisee.

At the same time, for Russian economy more characteristic is the free type of franchise, in which the franchisor is only interested in the down payment - the purchase of the brand. For this, he gives a recipe for a successful business, as well as contacts for most suppliers.

This is where the collaboration almost ends. The franchisee and the franchisor will only discuss issues together and promote common goods and services.

But Europeans often choose a stricter classical model due to the fact that it provides constant assistance from the franchisor, and, accordingly, supervision over the quality of doing business. With this option, freedom is lost, and with it the probability of making a mistake.

Pros and cons of a franchise

In order to explore the positive and negative sides opening a franchise business, you need to touch on the statistics. Official data says that about 80% of start-up entrepreneurs are weeded out in the first year. And from the remaining 20 - 15 after 5 years of work.

Of course, this statistic considers the sale of rights, the purchase by large companies and other transactions beneficial for the businessman to be a failure. But the general trend is this - about 1/3 of real businesses are successful with start-up entrepreneurs.

And this is where the main positive side franchises - reliability. In fact, after the purchase, you get a ready-made recipe for how to run a working business. With all the suppliers, the choice of products and services, a multi-year team of analysts and a clear one that includes all the little things, down to the heating requirements of the building.

Buying a franchise of a well-known brand, you will receive a clear plan on how to make successful business, which will bring profit within a few years.

According to official statistics, aspiring entrepreneurs who have chosen a franchising model as the development of their business save up to 5 years for the development of their own company.

Of the implicit pluses, one can still distinguish:

from the franchisor;
Availability of trusted suppliers;
Advertising campaign within the brand.

Franchising statistics are somewhat different than in real business. About 60% of franchise businesses are successful. At the same time, 30 out of 40 were at a loss due to their own mistakes, due to deviation from the franchisor's business plan.

And the remaining 10% incorrectly chose the region for business promotion. That is, if you choose the right region and fully follow the advice of the company, then the business will bring a stable income.

But in addition to the pros, there are several significant disadvantages that can weed out most novice businessmen.

Minuses:

Price;
Ease of doing business.

And if everything is clear with the first - for example, it may take up to 30 million rubles to open a small McDonald's restaurant, then with the second everything is not so clear.

On the one hand, everything is simple - there are working tips that must be followed, and the profit will not be long in coming. On the other hand, an entrepreneur will not gain experience by trying different strategies, “filling bumps” and coping with crises.

A franchise business is more like a game according to predetermined rules - do it and you will get a stable business and income. After a few years, you may be allowed to "change the menu" or "add a small shop."

And now we have reached the restrictions and requirements that most franchisors impose on potential buyers of the brand.

If we touch on the most popular - franchised fast food, then there are a lot of requirements:

To buildings;
to the staff;
To the menu;
To the franchisee.

As well as many restrictions, such as: do not change the menu, train the first employees strictly from the franchisor, buy equipment from such and such a manufacturer, purchase only from these suppliers for the first time, etc. Each has individual conditions, but the essence is approximately the same: do the same, as well-known representatives of the brand.

But at the same time, one should not think that such actions according to the template will be unprofitable. Majority large companies, who are concerned about their franchisees being successful, conduct analytical work, during which they identify the needs of the region, features, which product should be launched, what is the most convenient time for this, etc.

The team will make a full analysis of how to make a brand successful in an average city or metropolis, what is more profitable to launch in central Russia, and that in the southern regions.

Is it worth starting a franchise business?

From the previous point, it became clear that the franchise has both its pros and cons.

Summarizing all this, it can be noted that:

If you find a good franchisor and follow his advice, you will get a successful business that will bring a stable profit in 90% of cases. At the same time, a number of restrictions are imposed on the businessman, which are set by the franchisor, in an attempt to protect him from wrong decisions.

It follows that running a franchise business is a great way to start your entrepreneurial journey. But working with big brands will require a significant amount of money. So start own business better with cooperation with medium-sized franchisors.

For more experienced businessmen, working with large franchisors saves a significant amount of time on project promotion. From 1 to 3 years to get your share in the market and from 2 to 4 to be able to fully gain a foothold in it.

How to start a franchise business

Starting a franchise business is quite easy. It is enough to go through 7 steps, after which you can have a legal and highly profitable business.

Step 1. Determining the sphere

Unlike the countries of Europe and America, where fast food dominates steadily and confidently, franchising promotion in the field of retail sales of non-food products is more popular in Russia.

Then comes the provision of various services and only after that comes fast food. Food retail and occupies 3% of the total volume of the Russian franchising market.

Consider each of the possible areas separately:

Retail. Represents interaction with major brands that operate in the region. In fact, it will be the purchase of wholesale consignments of goods and retail sales. Outstanding representatives who provide their goods for sale are Lacoste, Oodji. Those who send purchased goods to their franchisees - Sportmaster, Sela, etc.;
Catering. Everything is simple here. You either rent a place at the food court and sell food and drinks under the brand name of a well-known brand. The menu is chosen by the franchisor, he also provides a database of suppliers, checks the premises and trains the staff. The most famous representatives are Subway, McDonalds;
Production. The most profitable and least liquid way to invest in a franchise. You can produce under a franchise: vegetables, flowers, bakery products and other similar products. The franchisor most often participates in the creation of production, shares recipes for creation and its channels for selling products in the region. A prominent representative of the production franchise is Pokrovsky bakeries;
Clothes and shoes of famous brands. Store openings famous brands- quite a profitable business. You will sell a range of well-known products in your region, while receiving full advertising support from the franchisor. Basically, you just open a branch store. Well-known brands - H&M, Timeout.

The choice of the field of activity depends entirely on the preferences of the businessman. In each of the segments, you can find both franchises with a small entry threshold - 100-400 thousand rubles, and large giants - from 20 million rubles per brand. At the same time, the sphere of production remains the most difficult, and the sphere of retail trade remains the least demanding on the manager's qualifications.

Step 2. Choosing a specific franchise and completing training

After choosing a niche, you will need to carefully study all the franchise offers. To do this, you can use our. The choice you make will directly affect your profit.

The qualifications of the franchisor will depend on:

Profitability of the enterprise;
Stability;
Competitiveness;
Demand.

As mentioned earlier, with a good franchisor, you will get a working recipe for a business that will bring long-term income. But a bad partner can only take the money and give a rough plan that contains general instructions on how to create some kind of business.

Signs of a good franchisor:

brand awareness;
Availability of a training center;
Research of the region;
Availability of supplier base;
Clear rules and requirements;
Real profitability figures;
Investments in advertising.

All these points show the attitude of the franchisor towards the buyers of the franchise. It makes no sense for a well-known brand to sell a low-quality product - including its name. The learning center indicates that some of the secrets of how the company's business is conducted have not been made public and they still have to learn.

A good analytical team that researches the needs of the region and builds a supplier base speaks volumes about the quality of doing business. Only those who bet on results can afford to invest in information and analysis.

The presence of clear requirements is an invariable quality of a good franchisor. Since he is interested in the franchisee developing and not making mistakes, he will protect him by setting clear requirements.

It is also aimed at maintaining the brand. And investments in advertising mean that, for the most part, at the expense of the franchisor, a businessman will be able to receive good advertising your business and quickly attract customers.

Step 3. Document preparation

At this stage, you should choose the legal form in which you will work on a franchise. There are two options for doing business: as or.

Doing business like individual entrepreneur has a number of advantages:

Ease and speed of opening.

But at the same time, you will be liable with your property for the obligations of your individual entrepreneur. However, even if you work at a loss, you will need to pay 35,000 a year to the social security fund.

Also, an individual entrepreneur cannot hire a large staff of workers - which can significantly slow down business development.

At the same time, the LLC has one significant plus - in the case of liability, liability can only be collected from the property of the company.

At the same time, LLC has a more complex and accounting system, and has a time-consuming state registration procedure.

When choosing a legal form, it should be borne in mind that when choosing an individual entrepreneur, all types of business related to cigarettes, etc. will not be available to you.

Step 4. Search and refurbishment of the premises

In any business, space plays a huge role. That is why every franchisor has a clear idea of what it should be like for successful business.

When examining the various franchises in the conditions, the requirements for the premises will be indicated each time.

In most of them:

Volume from ** square meters;
The presence of a water supply;
Compliance with all safety standards;
Various specific features. Varies from business to business.

Some allow their franchisees to rent the premises, while others insist that it be their own.

Most franchisors operating in different regions of Russia have their own bases suitable premises for each city. You can also use consultants from franchisors who, in short time find a place to do business. This is one of the advantages of working with medium and large brands.

Step 5. Purchase of equipment

One of the most simple steps. The franchisor issues contacts of all suppliers, or is completely independently engaged in the purchase and delivery of equipment. Also, specialists can deal with the installation of all equipment. About 80% of all costs are spent on the premises and preparation of equipment before opening your own business.

At the same time, if you work with European brands, you will need to purchase quite expensive equipment, and it will not be possible to buy Russian analogues. And because of the high price, the quality of the equipment will be appropriate.

For example, for German equipment purchased by McDonald's franchisees, the warranty is from 10 to 30 years.

Step 6. Preliminary preparation

The process of preliminary preparation includes: purchase of goods, preparation of premises, holding advertising campaign and a test run of a store/restaurant. This process will be managed by the franchisor's specialists: their the main task- find flaws and eliminate them even before launch, simultaneously teaching a businessman various subtleties of doing business.

It can take from 1 to 3 months to prepare a business in advance.

Step 7. Starting a business

After preliminary preparation, it is time to start the business. For the first time after the launch, the franchisor's specialists and analysts will closely monitor the performance of the store/restaurant. After a few months, the franchisee will have more freedom, for example, to vary the assortment of the store.

After 1-2 years have passed, the franchisee will be able to fully take control of the business and choose suppliers of goods, train employees on their own and build a sales line as they see fit.

That is, over time, any franchisee gets much more freedom, regardless of the chosen form of franchise. Even with the classic model with such a tough franchisor as McDonalds, after 1 year you can change the menu, after a year and a half you can create your own dishes, and after 2 years you can create your own dishes on the territory of the restaurant and next to it.

All about paying a franchise

Now let's talk in more detail about financial side question.

When selling a franchise, the franchisor has two options:

Require only a down payment, which will pay off all the costs of assistance in starting a business;
Require a down payment, as well as monthly (quarterly or annual) contributions in the amount of % of the business.

The franchise fee is called a lump-sum fee. This is a one-time payment, which is calculated from all the costs that the franchisor will have to bear to open a business, as well as payment for its services.

The monthly fee for using a franchise is called a royalty.

There are 3 types of royalties:

Percentage of turnover;
Percentage from the markup of goods;
Fixed royalty.

The most commonly used percentage of turnover - from the amount of income withheld from 5 to 30% monthly, depending on how profitable the business is.

At the same time, as mentioned earlier, if the franchisor charges only a lump-sum fee as a franchise fee, this means that he will be less interested in developing your business.

It will be enough for him to receive a large amount once, give a business plan and leave in an unknown direction, leaving the businessman to deal with his own project on his own.

On the other hand, large royalties can negatively affect the profitability of a business. True, most franchisors take into account the profitability of their projects, so they set quite adequate rates of 5-15% of the profit per month. This makes it possible to earn money from the entire branch network, and at the same time leave them a significant amount of profit.

There is another contribution - advertising. Thanks to him, an advertising budget is formed, which is spent on promoting the whole brand in all regions. Thus, paying from 10 to 100 thousand rubles a month, depending on the volume of business, you will be able to receive full-fledged advertising in your region, as well as increase brand confidence around the world, which also has a positive effect on sales.

Franchise Examples

In the end, let's look at 3 large franchises in three different areas: McDonald's, Pyaterochka, Lacoste.

McDonald's.

Having appeared on the Russian market relatively recently, a large catering giant began to dictate its own, rather harsh conditions.

In order to be eligible to use a McDonald's franchise, you must:

Have capital from 10 to 40 million rubles, depending on the city and the size of the restaurant. At the same time, at least 50% of the funds must be own, not borrowed. The remaining 50% you can pay within 7 years at a minimum percentage of the company itself;
Get paid training. Tuition price - $ 10,000;
Have extensive experience in business or catering.

In fact, in order to open a McDonald's franchise, you must either be an established businessman or have extensive experience in the food service industry.

The McDonald's lump sum is $45,000. Royalties - 12.5%. Payback period - 3-5 years.

Pyaterochka.

Retail grocery stores in Russia prefer to develop organically - not by selling franchises, but by independently expanding production areas and absorbing regional retail chains.

But X5 Retail Group, the owners of Pyaterochka, Perekrestok and Karusel stores, decided to create a franchise network in Russia grocery stores with fairly favorable conditions.

Terms:

Availability of own premises (long-term lease is suitable);
Positive business reputation;
Availability trading floor from 100 sq. m.

Lump sum - 750,000 - 1,000,000 rubles. There is no legal royalty. But here lies one important detail - according to the contract, the franchisee receives a commission in the amount of 14 to 17% of the store's income. Quite a profitable scheme for start-up entrepreneurs.

The payback period for the business is 1.5-2 years. Great option for businessmen without experience.

Lacoste.

The most controversial one on this list.

There are few requirements, but they are quite tough:

Presence of own premises - 100-150 sq. m.;
Experience in the field retail sales and availability own stores clothes.

There are no lump-sum fees and royalties. You will buy branded clothes, shoes and accessories and sell them in your store. The franchisor will need to pay for the products and the mandatory advertising percentage.

The payback period depends on the businessman. The freest franchisor, only for the most experienced entrepreneurs.

These three franchisors show a completely different approach to franchising. One is a classic European with tight boundaries and excellent strategy. The second is a typical Russian, with a rather strange approach in the form of agency fees. And the third is an American, with favorable conditions for himself, who is looking for an experienced partner.

Each franchisor is an individual and a company with decades of experience behind it. Consider all the features when choosing a partner, up to the size of the room and the severity of the conditions.

Conclusion

Starting a franchise business is the most profitable way for aspiring entrepreneurs to start their own business. In Russia, the most popular franchises with investments ranging from 400 thousand to 4 million rubles.

If you have such capital, then literally in 1.5 - 3 years you will be able to recoup all investments and reach an income of 40 to 500 thousand rubles a month.

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

What does it take to open a franchise?

Opening a franchise requires some funding. To start your own business, you need to have start-up capital covering the current costs of concluding an agreement and making priority contributions. can be done with your own funds state subsidies or a bank loan.

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

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

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

The lump-sum fee consists of the current costs that the franchisor's side will incur when granting and registering a franchise for the second side.

The cost of the lump sum payment will depend on:

the degree of support and the concept of the franchise system;
fame and popularity of the brand;
holding marketing research and development of the current business strategy;
lease and arrangement of premises.

Additionally, the signed contract will specify the amount and conditions of regular periodic payment for the use intellectual property. These payments have the designation "royalty" and can be paid according to two conceptual schemes:

as a percentage of gross profit;
as a fixed amount.

How much does it cost to open a franchise

The cost of acquiring such a project will directly depend on the popularity of the brand and its position in the market. Of the entire list of what can be opened under a franchise, establishments are considered the most popular and profitable. fast food and fashion chains.

The amount of the lump-sum fee for medium-sized franchises starts from 150,000 rubles. For comparison, Adidas franchise costs $20,000, while the popular coffee chain StarBucks costs $150,000. Each franchisor sets its own financial target, based on the potential profit of the franchisee and the economic effect for the brand owner.

Is it worth opening a franchise?

Franchising as a form commercial activities, is the most cost-effective and effective way running a small business. Both parties to the contract receive profitable terms for your development. The franchisor, as the owner of his own brand, acquires the opportunity to open new sales markets and attract new customers to his products.

The franchisee, meanwhile, receives at its disposal a ready-made operating scheme for starting a business, as well as active support from the franchisor and assistance in resolving strategically important issues.

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

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 case, 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 look at what kind of beast this is, a “franchise without investments”, and under what conditions you can be offered 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 internal structure 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 the service station, operating under famous brand, practically guarantees him a profit and a flow of customers.

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

My services Leave a request

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 most the best option"free cheese". It is important to understand that it will not work without investments at all. In any case, someone will invest 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):

0 lump sum and a certain percentage of royalties;
the presence of royalties and a lump-sum contribution, which is provided by installments;
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?

Right now you can cross out all of the above with the franchises found on the Internet “without lump-sum contributions 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? Excellent! 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 names in search engines, you will 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 bringing good income. Again, this option is only suitable for those who know how or are eager to sell. Contact any brand network company and submit your nomination. Rest assured, network businessmen will provide you with pleasure 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:

eCosway. international company from Malaysia, which provides you with an online store. An offline point is provided to you for a sufficiently large turnover in business - the company pays for the rental of premises, design, utilities, conducts the purchase of goods and equipment. Your task is to develop the business. And forget about investments.
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 often show remarkable cunning when we are talking about 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 oriental-inspired sweets all their lives, 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 what directions to this moment are relevant:

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.
Repair services. This is one of the most profitable niches. You can engage in the installation of underfloor heating, interior decoration, cosmetic repairs for offices, installation stretch ceilings and so on. In any case, if you are well versed in this, you will not lose.
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.
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!