Every entrepreneur who wants to open a business with an idea that has already proven itself in the market has a choice: to start on their own from scratch or. This choice is more difficult than it seems, because the money invested in the business is at stake. Some say that a franchise is a waste of money. Others call her the best way grow rich. We will tell you whether a franchise business is profitable and how to make the right decision.
Benefits of a Franchise
The essence of franchising brings it to the forefront: perfect cooperation between the seller and the buyer, when the first expands the business with almost no investment, and the second receives entrepreneurial experience, support and profit. The statistics are also on the side of the franchise, because most newcomers are forced to close in the first year. In franchising, this percentage is much lower. Let's figure out why it is profitable to work on a franchise:
- Buying a franchise, you automatically get a promoted brand, recognizable and with a clean reputation.
- The franchisor invests in advertising himself. You can save on this item of income and time to form the image of the company, win over customers - you can immediately proceed to making a stable profit.
- Support and training from the franchisor - this is not what you get when starting alone. The seller can take care of the franchisee, increasing his knowledge, skills and abilities through courses, master classes, training materials, individual consultations.
- Consulting. When buying a franchise, the partner will help with specific issues: providing initial information about the market segment, advice on choosing premises and personnel, and marketing consultations.
- You know the amount that will be needed to run the business, everything has already been calculated for you. So you take less risk by taking on too large amounts or stumbling with too little.
- Individual entrepreneurs are a dime a dozen, counterparties will not single out someone, which cannot be said about franchisors. They usually have established contacts with suppliers and have big discounts, so profitable terms will get to you too.
- The franchisee shares responsibility with the franchisor. It is stress that can prevent a beginner from calmly and confidently approaching the matter. He does not feel alone in difficult business situations and therefore the franchise becomes more competitive.
- Often the franchisor demarcates the territory so as not to create competition between his own franchisees. The scope of the expansion is prescribed in the contract.
When buying a franchise, the partner will help with specific issues: providing initial information about the market segment, advice on choosing premises and personnel, and marketing consultations.
As a result, the picture is rosy: a franchise is easy money. You get the opportunity to develop, immediately rising to the same level as the parent company. But in no case can one draw conclusions without learning about the shortcomings of the franchise.
Franchise Disadvantages
Franchising is not the dominant system in business, which means that it is far from ideal. The disadvantages are related to the fact that the franchisee with a business that seems to belong to him does not feel independent. And the payback of the franchise depends on many factors. You may encounter obstacles not only in developing a franchise, but also yourself as an entrepreneur.
The most banal problem of the franchisee is. The start itself lump sum- costs a lot. Especially if you wanted privileges, so you won’t be able to fit into franchising from scratch. Add to that a recurring royalty payment, which can be a fixed amount or a tangible percentage of profits. It turns out serious expenses, which are your responsibility to pay, even if you go broke.
Unfortunately, in Russia there is no legislation on franchising that would regulate its activities from and to, and franchisees usually suffer from this. You should take care of your own at the stage of signing the contract, asking for help from a specialist. Do not forget about the powerful legal support of the franchisor.
Another trouble that the franchisee faces is the limitation of independence on all fronts. has already developed a business development strategy and is working on it, so it will not work to get out of this framework. It is important for the franchisor that you maintain the brand image. These standards may relate to the quality of service or the choice of premises and can be very high - such that the chance of burnout becomes real. Even a sensible remark or an effective idea of an entrepreneur can be rejected only because the franchise is a well-oiled mechanism that does not tolerate deviation from the standard.
The cons of a franchise are associated with risks that depend on the choice of the parent company. Franchising has become so popular that even yesterday's newcomers sell it. Sometimes it "shoots", but more often it leads to bankruptcy of both the franchisor and all his franchisees.
Even at the stage, your task is to study the interested company, make sure that it really has a successful experience, a recognizable brand and a good reputation. Moreover, the collapse of the parent company with unconvincing competence for franchising will lead to the closure of everyone who worked with it.
And, finally, another common problem: the franchisee may eventually find suppliers who are ready to work on favorable terms for him, but there is a requirement from the franchisor - to purchase only from him or his suppliers. The rules of free competition do not work.
Drawing conclusions
Of course, the conclusion is different for everyone, and it depends on the specifics of the business, the entrepreneur's expectations, and the conditions of the franchisor. It is useful to study the future partner by numbers (if you have access to them) in order to find out the effectiveness of franchising. Remember that buying a franchise is an investment. So follow the same rules. What return will the money invested in the franchise bring? What is the payback period for a franchise? Will I work better with this experience? Approach with all responsibility to making a decision, then you will get a really profitable system that works for you.
If we talk about the most profitable franchises, it is worth noting that many of the franchises presented in 2018 in the franchise market are in the top of the best offers for a long time. For a number of these franchisors, the number of enterprises opened on the basis of a franchise partnership is much larger than their own branches.
Among the most profitable franchises of 2018, you can find franchises related to the launch and development of enterprises in such areas as catering and clothing retail, medical services, hairdressing business and much more. Businessmen interested in small and medium-sized businesses can take advantage of offers from both domestic famous companies and world famous brands.
We bring to your attention a list of profitable franchises in 2018. These franchise offerings are well suited to a wide range of entrepreneurs. These franchises will help you get started own business with minimal labor. You can contact each franchisor from the list directly through the contact form.
List of profitable franchises in 2018
Contrast Franchise
The franchise is a project to open a hookah club. The company that provides the opportunity for franchising cooperation has passed the certification procedure and is engaged in legal activities. Enterprises opened under the Contrast franchise are distinguished by a high level of profitability. That is why this franchise can rightly be considered one of the most profitable.
The total amount of investments required to purchase a franchise: 400 thousand rubles. The franchise agreement does not provide for the payment of royalties. Representatives of the company provide assistance in choosing a place to open a club. Staff training is provided. Minimum payback period of the project: five months.
CoffeSpace franchise
This profitable franchise is an offer from a company specializing in the coffee business. The number of fans of the brand is estimated today in tens of thousands. The success is due to a number of factors, including the so-called provocative design decisions.
The amount of investments for the formation of the enterprise is 300 thousand rubles. There is no royalty payment in the franchise agreement. The minimum amount of the push fee is 179 thousand rubles. There is no royalty payment in the terms of the contract. The territory for opening a coffee shop is selected with the help of the company's specialists. Preference is given to universities, trade and business centers. The minimum payback period for investments made is three months.
Franchise of the children's clothing store Artel
The company that introduced the Artel franchise to the Russian franchising market in 2016 is engaged in the implementation of high-quality, practical and fashion clothes for kids. This franchise is considered by many experts to be one of the most profitable as of 2018.
The franchisee gets the opportunity to use the full package of standards for document management and accounting for goods. Staff are regularly trained and tested. The amount of investment for acquiring a franchise is 800 thousand rubles. Annual payment of royalties - 25 thousand rubles annually. There is no lump-sum payment in the terms of the contract. Requirements for the area of the room: 60 - 100 square meters. The period during which investments pay off: from five months to one and a half years.
Send a request directly to the Artel franchisor right now!Other Profitable Franchise Options
Below we have selected for you a few profitable franchises that may be of interest to you. Please check them out.
View from the outside
"Companies launch franchises for small towns"
Nina Semina, founder of the franchise catalog franshiza.ru
“In 2017, low-cost franchises (up to 700,000 rubles of expenses for starting a business) were popular, as well as franchises in the field of medical and laboratory diagnostics, children’s education, beauty and Catering. Decrease in demand for franchises in the field retail apparel and footwear, and increased demand for franchises decorative cosmetics: In early 2017, we saw an increase in demand for Flormar, NYX Professional Makeup and Russian brand Mixit. The trend is also the segment of franchising, built on the sale of food, drinks, household goods for low prices(Galamart, Fix Price, Home Market).
More and more operating franchisors are launching as a separate franchise format for small towns. Previously, everyone wanted to develop networks in millionaires, but there is already strong competition in most markets. In small towns, competition is not so high, but they need Special offers with a minimum investment. On the other hand, many Russian successful franchisors are beginning to enter the international market - to the countries of the post-Soviet space, to Europe and China. This is mainly typical for the catering segment (Chocolate Girl, Gelateria Plombir, Dodo Pizza, etc.). ,>
Among the new areas of franchising in 2017 are EMS fitness, Mind games, virtual reality, aggregators (for example, Fasten taxi aggregator). An interesting trend is the development of multi-franchising, when people purchase several different franchises at once.
According to forecasts for 2018, we expect the emergence of franchises in the field of services and goods for animals (Medvet animal clinics have already appeared), interesting regional concepts for fast food franchises, the development of the “with a twist” restaurant segment, the beauty and health segment, IT franchises, as well as franchises targeted at the younger generation.
"The typical franchise buyer is the middle manager"
co-owner consulting company Deloshop Philip Gureev
“We are seeing a slight increase in demand for franchises in the range of 5-10% per year. At the same time, many new franchise players are emerging. Many of them quickly cease their activities. As a rule, these are small companies from the regions that have opened two or three points in their own country and now expect to conquer the whole of Russia with their concept. Basically, these are services and catering with starting investments from 1-2 million rubles. However, if a business does well in one city, this does not mean at all that it will be successful at the federal level. In general, there are many more new concepts and ideas on the market than franchise buyers.
As usual, children's centers, football schools, medical laboratories, etc. are in demand. The network is successfully developing (No. 20. - RBC) from Metro Cash & Carry - many owners of unnamed convenience stores prefer to work under the wing of a large chain.
A typical franchise buyer in 2017 is a middle manager who has up to 5 million rubles. As a rule, he views the franchise as a way to get passive income. Deposit rates have fallen, real estate is not getting more expensive, so they want to start some kind of business. At the same time, his wives, relatives, and hired managers are often trusted, which, of course, is a mistake. The less the owner is involved in the franchise business, the greater his chances of losing money. Sometimes it's easier to buy already ready business“It will cost more than a franchise, but there are fewer risks.”
When looking for a franchise, the buyer focuses on the optimal combination of price and quality - in order to spend, if possible, less, and receive more. How to find a profitable franchise among the many offers with minimum investment?
Attachments: what is included?
Before jumping into the franchise catalog, it's important to get a realistic picture of all future expenses. What is the actual cost of a franchise?
Keep in mind that part of the costs may not be specified in the franchise offer, so best strategy- find out all the nuances directly from the franchisor.
- Lump sum- the amount that you need to pay when buying a franchise.
- Investments, including working capital for the first 1-6 months - the cost of acquiring or renting premises and equipment, purchasing a consignment, remuneration of employees, etc.
- Royalty– monthly fee for using the franchise in the form of a fixed amount or % of revenue.
- Additional payments– possible deductions for advertising and other services.
Consider the conditions for the most profitable and budgetary franchises at the end of 2017.
Franchises in the field of trade
1. "Jack Hiker"
Retail store for youth backpacks. In production, the emphasis is on tracking popular trends in youth culture and their immediate implementation in prints, which ensures high sales. The only contribution from 86,500 rubles. goes to buy a rack and backpacks.
2. "Touching sand LEPA"
Developer of plastic modeling material made from sand with the addition of a polymeric substance. Two franchise packages are offered - "Light" (point of sale in the form of a promotional stand) and "Maxi" (island-type pavilion "Vagonchik").
3. "Prodigy"
Manufacturer of educational toys made of environmentally friendly materials for children from 8 months to 9 years. Shop, minimarket and maximarket options are offered.
4. "Autoreality"
Network of spare parts stores for foreign cars. Available various forms cooperation depending on the number of car brands, the components for which are presented, and the locality. The franchisee himself chooses the brands of cars for which he will sell spare parts; at the same time, the franchisor guarantees that the right to sell a particular brand within one city will not be transferred to other franchisees.
5. "Vintage"
Shop of tea and coffee products of the company "Ouncia". Franchise training is aimed at newcomers to the business and contains step by step instructions to start your own business.
6. EXPETRO!
Island stores of bright anti-stress gifts (pillows, soft toys, accessories) owned by the owner of the Expedition brand. The franchise provides for fully automated business processes, training in sales techniques, the possibility of a margin of 130-150%.
7. "E-mobile"
Gadget accessories store. The franchisor provides legal services, accounting support, consulting on sales technology, recruitment, analysis of the regional market, etc.
8. Orange Elephant
Shop for goods children's creativity and development. The range is represented by training sets, coloring books, board games, materials for modeling and drawing. As part of the offer, the franchisee gets the opportunity to buy goods at prices 20% lower than wholesale.
9. "SKAZKA Natali Romanovoi"
Multi-brand silver jewelry store. According to the terms of the franchise promotions, as well as weekly delivery of goods is carried out at the expense of the franchisor; It is possible to return unclaimed goods.
10. "Expedition"
Shop of goods for tourism, as well as unusual gifts and souvenirs. Formats outlets include both mobile versions (“Little Raft”, “Island of Joy”) and full-length versions (“Territory of Vivid Impressions”, “Expedition Worlwild”). In addition, there is a profitable offer "Shop-in-shop" - the opening of the store "Expedition" inside the existing store (lump fee from 30 to 70 thousand rubles.)
Service franchises
1. Genetic-test
Innovative fingerprint aptitude testing company. The franchisee is provided with a fingerprint scanner, as well as access to special software that processes the data and generates the finished result. The franchisor conducts comprehensive sales training (Light Push system).
2. "House Bureau"
A company for the construction of modern wooden cottages using the "Warm timber" technology. The franchisor undertakes to provide marketing and organizational support to partners and assist in staff training. The franchisee also gets the opportunity to use the company's ready-made database of projects.
3. "Infolife"
The company is the developer of a system for testing abilities, character and health based on fingerprint data. The attraction of a franchise is small investment, quick payback and the ability to choose a package according to your pocket. The provision of services is possible on stationary and mobile racks, on the road, as well as using vending terminals. Franchise points are open in 36 countries of the world.
4. Fly.ru
Travel IT company using its own software development, which allow you to optimize all processes related to the search, booking and issuance of travel packages, which allows you to quickly process a large number of orders.
5. "RosFundament"
Manufacturer of pile-screw foundations, which also carries out work on their design and installation. Three types of offers are available depending on the planned scale of the enterprise: "Standard" (139,000 rubles), "Advanced" (199,000 rubles) and "Exclusive" (399,000 - 499,000 rubles)
6. "Layout-master"
Mock-up and 3D modeling studio for a wide range of clients including oil refining, industrial, military, transportation and engineering companies from the public and private sectors. The franchisor conducts a three-day training course for partners, provides video instructions for creating layouts, and advises on opening and developing a business.
7. "Peppy day"
Coffee shops offering coffee "to go" as well as fresh pastries. Sales rack formats, "islands" for shopping centers, street kiosk, street retail. Instead of cash desks in the network, an online CRM-ERP system is used, which reflects all sales and keeps records.
8. "Hodograph"
Training center for preparing schoolchildren for the OGE and the Unified State Examination. The company has developed an extensive franchise package with detailed training materials on all aspects of the business. The franchisee can count on the support of a personal curator, assistance in creating a website and design outdoor advertising, to learn how to work in the CRM system and receive special methodological literature.
9. "Stardog! S"
The first domestic fast food chain. The menu is based on hot dogs and sandwiches. Possible points of sale include mini-units, pavilions, auto buffets and food courts.
10. "1C: Accounting Service"
Affiliate network of firms of the company "1C" for the provision of services in the field of accounting, personnel and tax accounting for small businesses. The franchisee receives software from the company "1C" to maintain client bases and implementation of operations, as well as information and technical support.
Conclusion
When looking for interesting and inexpensive offers, you should pay attention to Retail Stores children's products, tea products, gifts, phone accessories and auto parts. In the service sector, affordable franchises are represented in the innovative niches of biometric diagnostics, construction and prototyping.
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