How to open a franchise business. Opening a franchise business: new instructions, tips, reviews Franchising start your business

How to open a franchise: advantages and disadvantages + choosing a registration form + 8 steps to opening a company 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 several years, has stood the test of time, is in demand among buyers, and all organizational issues and advertising moves to promote the product have already been established.

It is because of this that novice entrepreneurs often wonder how to open a franchise store.

This article will help you find the answer to the question, how to open a franchise business, and what you should pay attention to 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

Advantages of a franchise

This type of income has huge advantages, which attract novice businessmen:

Opening a franchise store means 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 a franchise business.

For beginning entrepreneurs, providing such assistance at the development stage is simply necessary.

To open a franchise business, no need to come up with a new direction or create a strategy from scratch to bring your 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, is 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 his own resources.

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

An important fact is obtaining a loan for a large amount.

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

In a normal 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, which are often only approximately calculated:

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

But thanks to the franchisor, the aspiring entrepreneur receives reliable and practice-tested information By .

This minimizes the risk that things will go in the wrong direction or unforeseen expenses will arise.

Disadvantages of the idea of how to open a franchise business

Having considered the advantages, we move on to the disadvantages, which can lead to the destruction of the business at the start if you are not aware of 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 premises of the enterprise with the help of an additionally installed store or cafe.

A successful example of the latter is the Pokrovsky Bakeries retail chain.

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 demand for production, then there will be profit accordingly. This means the direction has been chosen correctly!

d) Children's products.

Formulas, toys, pacifiers, and clothing, baby hygiene products - all this will definitely be purchased by mothers for their babies.

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.

d) Clothes, shoes.

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

However, before starting, 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 of each direction are easily determined in your own city through analysis.

Step 2. Prepare documents

To start your entrepreneurial activity, the business must be registered.

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

Now let's look at 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 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 matter.
An enterprise can be called almost anything (except for cases prescribed by law).	Reporting is several times greater than that of an individual entrepreneur
Sold or divided at the request of the founder.	Fining system from tax office and others government agencies much stricter than for individual entrepreneurs.

The founder must take into account that some stores cannot be opened as a franchise as an individual entrepreneur. This list includes the implementation alcoholic drinks, military industry, security agencies.

Step 3. Deciding on the room

The franchisor pays special attention to the choice of premises.

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

favorable location, which contributes to successful business;
a large area of the store in which trade will be carried out;
compliance of the interior decoration of the premises with the “spirit” of the business;
availability of space that will be used for storage.

Of course, finding an area that satisfies all the franchisor’s requirements is not easy. But if you have dealt with this, then you can submit an application 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 is received, the entrepreneur is told a number of requirements that he must fulfill.

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

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

This method allows the franchise founder to weed out insolvent entrepreneurs. Also, in this way, it can prevent unjustified costs that are associated with joining a person to a business network.

Step 5. Preparing the store for opening

After receiving a franchise, you need to make repairs to the premises to meet the specified requirements and purchase the necessary equipment.

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

Step 6. Recruiting staff for the store

Basically, the copyright holder himself recruits staff and trains workers according to his own developed program, while covering all costs for this process.

Most a prime example- This is the McDonald's chain. All its employees must act according to a single brand code. And franchisors monitor 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 budding entrepreneur will only need to pay for the supplied products at the company’s established 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 his business developing and generating income. Therefore, he bears 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 A franchise requires more capital investment than starting your own business from scratch.

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

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01Jun

Hello! In this article we will talk about opening 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 the franchise is called the “franchisee.” Franchisor – 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 operate 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 launch your business.

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

It’s worth talking about advertising separately. Since in most cases you are already buying ready-made brand, then the market has already taken care of it. And a developed network of franchises allows several businessmen to advertise the same product, which significantly reduces promotion costs.

The franchise system is widely used in public catering. The most prominent representative is McDonald's. The company has been promoting its services through a franchise model for more than 30 years.

Types of franchises

Experts divide several types of franchises:

Classical. The most popular type of franchise in Europe. The owner pays an initial amount for the purchase of the franchise, regular contributions in the form of a percentage of profitability, and operates under the close supervision of the franchisor.
Free. The most popular type of franchise in Russia. The owner receives almost complete freedom of action, a rough action plan for running the business 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, for a fee, transfers it into ownership to the manager. Profits are divided depending on the terms of the agreement between the manager and the franchisor.
Rent. Almost the same as a turnkey business, the only difference is that the business is leased for a certain period.
Master franchise. Purchase of monopoly rights to conduct business in the region. The franchisee has the right to decide for himself how to run his business. He receives only general advice on how to conduct business, but under this model there will be minimal interference from the company.
Corporate. The owner simply creates under the name of a well-known brand, but makes most of the decisions himself. The franchisor can only tell him his suppliers, the main areas of the company’s activities and assortment. The businessman himself is responsible for everything else.

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

Moreover, for Russian economy A free type of franchise is more typical, in which the franchisor is only interested in the down payment - purchasing the brand. For this, he gives a recipe for a successful business, as well as contacts of most suppliers.

This is where the cooperation almost ends. The franchisee and franchisor will only discuss together issues and promotion of 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 possibility of making a mistake.

Pros and cons of a franchise

In order to study the positive and negative sides opening a franchise business, you need to touch on statistics. Official data says that about 80% of start-up entrepreneurs are weeded out in the first year. And of 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 thing comes from: positive side franchise – 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.

By purchasing a franchise from a well-known brand, you will receive a clear plan on how to successful business, which will bring profit within several years.

According to official statistics, budding entrepreneurs who choose a franchise model to develop their business save up to 5 years on developing their own company.

Other hidden advantages include:

from the franchisor company;
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 deviations from the franchisor’s business plan.

And the remaining 10% chose the wrong region to promote their business. That is, if you choose the right region and fully follow the company’s advice, the business will generate 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 with the first everything is clear - for example, opening a small McDonald’s restaurant may require up to 30 million rubles, then with the second everything is not so clear.

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

A franchise business is more like a game according to pre-agreed rules - do this and you will get a stable business and income. In a few years, you might be allowed to “change the menu” or “add a small store.”

And now we come to the restrictions and requirements that most franchisors impose on potential brand buyers.

If we talk about the most popular - fast food franchise - there are quite a lot of requirements:

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

And also many restrictions like: do not change the menu, train the first employees strictly from the franchisor, buy equipment from such and such a manufacturer, purchase initially only from these suppliers, etc. Everyone 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. Most large companies that are concerned about their franchisees being successful carry out analytical work, during which they identify the needs of the region, features, what product should be launched, what is the most convenient time for this, etc.

The team will carry out a full analysis of how to make a brand successful in a medium-sized city or metropolis, which is more profitable to launch in central Russia, and what about in the southern regions.

Is it worth starting a franchise business?

From the previous paragraph 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 imposed by the franchisor company 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 allows them to save a significant amount of time on project promotion. From 1 to 3 years to gain your market share and from 2 to 4 to be able to fully gain a foothold in it.

How to open a franchise business

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

Step 1. Determining the scope

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

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

Let's consider each of the possible areas separately:

Retail. It represents interaction with major brands that operate in the region. In fact, this will be the purchase of wholesale quantities of goods and retail sale. Prominent representatives who provide their products 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 in a food court and sell food and drinks under the name of a well-known brand. The franchisor selects the menu, he also provides a supplier base, checks the premises and trains staff. The most famous representatives are Subway, McDonalds;
Production. The most profitable and least liquid way to invest in a franchise. You can produce as a franchise: vegetables, flowers, bakery products and other similar products. The franchisor most often participates in the creation of production, shares creation recipes and his 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 company. Essentially, you are simply opening a branch store. Famous brands – H&M, Timeout.

The choice of field of activity entirely depends on the preferences of the businessman. In each segment 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 production sector remains the most difficult, and the retail trade sector remains the least demanding of manager qualifications.

Step 2. Selecting a specific franchise and completing training

After choosing a niche, you will need to carefully study all franchise offers. To do this, you can use ours. Your profit directly depends on the choice you make.

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 generate long-term income. But a bad partner will only be able to 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 a supplier base;
Clear rules and requirements;
Real profitability figures;
Investments in advertising.

All these points show the attitude of the franchisor towards franchise buyers. It makes no sense for a well-known brand to sell a low-quality product, including its name. The training 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 studies the needs of the region and compiles a supplier base speaks volumes about the quality of business. Only those who bet on results can afford to invest money in information and its analysis.

Having clear requirements is a constant 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.

This is also aimed at maintaining the brand. And investments in advertising imply that, mostly at the expense of the franchisor, the businessman will be able to receive good advertising your business and quickly attract clients.

Step 3. preparation of documents

At this stage, you should choose the organizational and legal form under which you will operate as 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 responsible with your property for the obligations of your individual entrepreneur. Moreover, even if you work at a loss, you will need to pay 35,000 a year to the social insurance fund.

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

At the same time, an LLC has one significant advantage - in the case of liability, liability can only be recovered from the company’s property.

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

When choosing a legal form, you should take into account 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 premises

In any business, premises play a huge role. That is why every franchisor has a clear idea of what it should be like to conduct business successfully.

When studying different franchises, the conditions will each time indicate the requirements for the premises.

In most of them:

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

Some allow their franchisees to rent premises, others insist that they own it.

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 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 contact information for all suppliers, or is completely responsible for the purchase and delivery of equipment. Specialists can also handle the installation of all equipment. About 80% of all costs before opening your own business are spent on premises and equipment preparation.

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 due to the high price, the quality of the equipment will be appropriate.

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

Step 6. Preliminary preparation

The process of preliminary preparation includes: purchasing goods, preparing the premises, conducting advertising campaign and test launch of a store/restaurant. This process will be led by the franchisor’s specialists: their the main task– find flaws and eliminate them before launch, simultaneously teaching the businessman various intricacies of doing business.

Preliminary preparation of a business can take from 1 to 3 months.

Step 7. Starting a business

After preliminary preparation, it’s time to launch the business. During the first time after launch, the franchisor’s specialists and analysts will closely monitor what indicators the store/restaurant shows. After several months, the franchisee will have greater freedom, for example, to vary the store's assortment.

After 1-2 years have passed, the franchisee will be able to completely take control of the business and choose suppliers of goods, train employees independently and build a sales line as he sees fit.

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

All about paying the franchise

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

When selling a franchise, the franchisor can choose two paths:

Require only a down payment that will cover all costs of assistance in starting a business;
Require an initial payment, as well as monthly (quarterly or annual) contributions equal to a % 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 incur 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 of markup on goods;
Fixed royalty.

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

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

It will be enough for him to receive a large amount once, hand over the 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 business profitability. True, most franchisors take into account the profitability of their projects, so they set quite adequate rates of 5-15% of 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 one more fee - advertising. Thanks to it, an advertising budget is formed, which is spent on promoting the entire brand in all regions. Thus, by paying from 10 to 100 thousand rubles per month, depending on the volume of business, you will be able to receive full-fledged advertising in your region, as well as increase confidence in the brand throughout the world, which also has a positive effect on sales.

Examples of franchises

Finally, let’s look at 3 large franchises in three different areas: McDonald’s, Pyaterochka, Lacoste.

McDonald's.

Appearing on Russian market relatively recently, a large catering giant began to dictate its own, rather strict conditions.

In order to obtain the right to use a McDonald's franchise, you must:

Have a capital of 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 and not borrowed. You can pay the remaining 50% over 7 years at a minimum interest rate from the company itself;
Complete paid training. Tuition price – $10,000;
Have extensive experience in business or food service.

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

McDonald's lump sum contribution is 45 thousand dollars. Royalty – 12.5%. Payback period is 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.

Conditions:

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

Lump sum payment - 750,000 - 1,000,000 rubles. Legally, there are no royalties. But here lies one important detail - the franchisee, according to the agreement, receives a commission in the amount of 14 to 17% of the store’s income. Quite a profitable scheme for beginning entrepreneurs.

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

Lacoste.

The most controversial on this list.

There are few requirements, but they are quite strict:

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

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

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

These three franchisors show very different approaches to franchising. One is a classic European with strict boundaries and an 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, down to the size of the room and the severity of the conditions.

Conclusion

Opening a franchise business is the most profitable way for beginning entrepreneurs to start their own business. In Russia, the most popular franchises are 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 achieve an income of 40 to 500 thousand rubles monthly.

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

What does it take to open a franchise?

Opening a franchise requires some funding. To start your own business, you will need to have starting capital covering the current costs of concluding an agreement and making primary payments. possible using your own funds, government subsidy or bank loan.

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

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

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

degree of support and concept of the franchising system;
brand fame and popularity;
carrying out marketing research and development of an effective business strategy;
rental 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 are designated “royalties” and can be paid according to two conceptual schemes:

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

How much does it cost to open a franchise?

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

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

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, gains the opportunity to open new markets and attract new customers to his products.

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

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

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, at a minimum, we will need a brush, a washcloth, water and detergents. Agree, in both cases you will need so-called start-up capital.

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

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

“Free franchise”: free and sweet vinegar?

Let's imagine a certain abstract Nicholas. For example, a guy spent his entire adult life hanging out in the garage next to his 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. Nikolai understood that the service station operating under famous brand, practically guarantees him profit and customer flow.

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!

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

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

The above story is of a fairytale/mythological nature. In real life, such events are extremely rare. Franchisors usually prefer the “money in the morning, chairs in the evening” model. Few people 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):

0 lump sum and certain % royalty;
the presence of royalties and a lump sum payment, which is provided in installments;
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 the “without” franchises found on the Internet. lump sum contributions 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.

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

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

Build trust.

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

Become a implementer.

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

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

TOM FARR;
Medicine;
Fabretti.

By entering names in search engines, you will 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, network business is really capable of bringing good income. Again, this option is only suitable for those who know how or are eager to sell. Contact any brand network company and propose your candidacy. Rest assured, network businessmen will be happy to provide you with 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:

"eCoswey". international company from Malaysia, which provides you with an online store. An offline point is provided to you for a sufficiently large turnover in the business - the company pays for the rent of the premises, design, public utilities, carries out the purchase of goods and equipment. Your task is to develop the business. And forget about investments.
"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 what directions this moment enjoy relevance:

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.
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.
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.
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!