home » Trading » Features of opening a franchise for doing business. Opening a franchise business: new instructions, tips, reviews How to open a franchise in your city

Features of opening a franchise for doing business. Opening a franchise business: new instructions, tips, reviews How to open a franchise in your city

Franchise business has become popular among aspiring entrepreneurs in recent years. This practice has been flourishing for quite a long time in the United States of America and has only recently begun to develop in Russian Federation but, despite this, in a short time she managed to win a certain niche in the market. The popularity of franchising business is based on a large number of advantages, among which are the following:

— an opportunity to enter an existing promising business;
- low entry barrier;
— the availability of sufficient information for accurate forecasting financial results activities;
— favorable lending terms for the franchisee, provided that the franchise owner acts as a guarantor;
- no need to invest in the promotion of goods;
– comprehensive support in doing business for franchisees, from the owner of the company;
– no need to study the market and search for free niches.

Given the above advantages, we can conclude that it is better not to risk trying to implement new ideas, but to take advantage of a partnership offer from leading companies that have won high positions in the market.

When concluding a number of agreements, the entrepreneur gets the opportunity to conduct business on behalf of the company and make a profit, in turn, the company acting as a franchisor can expand the sales market and acquire additional capital.

Before moving on to consideration of the implementation of specific business ideas for a franchise, you need to understand the main categories of this business, namely, what is the cost, royalties and lump-sum.

Lump sum is the cost of the franchise, namely the one-time entry fee ready business and getting the opportunity to work on behalf of the company. Royalties - represents the amount of a mandatory, regular payment to the franchisor to cover the costs of developing the system.

Under a franchise, you can open any establishment that sells goods or provides services, the main thing is to choose the right offer and draw up all the necessary agreements.

How to open a franchise travel agency?

Buying a franchise is the best way to start a travel agency because it gives you the opportunity to take advantage of a well-established name that inspires confidence among customers.

It deserves attention that the independent opening of a travel agency requires a large start-up capital, the presence of relations with tour operators, a large-scale advertising campaign and many other costs that pay off for a long time.

While starting your own franchise business, you can easily enter an existing business and work on behalf of a well-established travel agency.

To conclude mutually beneficial agreements, you will need to make a lump-sum contribution, monthly royalties and other necessary payments, after which you can start working and making a profit.

Today, the market of the Russian Federation represents a large number of franchises for opening a travel agency. For example, until the end of 2013, you can purchase a franchise called "A network of hot tours stores" with an investment of 400,000 rubles.

The lump-sum fee and monthly royalty are 13,000 rubles. The conclusion of the agreement gives the owner the right to use the trademark, receive accounting and legal advice, participate in marketing activities and apply for assistance in resolving disputes.

In addition to the above rights, the opportunity to contact the tourist support service abroad or the Call Center deserves attention.

To study the numerous experience of other entrepreneurs who have created their own successful business with a franchise in the section of our website:

The most successful and informative case according to the editors of the Russtarup portal:

An interesting experience of creating a business under the franchising program is presented

We open a bookmaker's office.

To date the best option to open a bookmaker is to purchase a franchise. It is when choosing such a strategy that you can easily open a successful bookmaker's office, which from the first days will actively develop and make a profit. Bookmakers-franchisors provide their divisions with assistance in such moments as:

— consulting;
— activity planning;
- implementation of advertising campaigns;
— selection and training of personnel;
– search for premises and equipping it with everything necessary for the operation of a bookmaker’s office.

Russia and Ukraine is the first step to starting a successful business with an easy and simple start.

Making a decision to buy a franchise is necessary with the professional recommendations of the section:

How to open a cafe franchise?

Among the huge number of franchises in all industries, catering offers are the most popular. You can open a cafe on your own, but it will take time to study the market, identify needs and develop your circle of customers.

To avoid unnecessary expenses, risks and a huge waste of time, it is better to enter into an existing business of a thriving cafe. For example, you can purchase an ice cream parlor franchise called 33 Penguins, which will require an investment of 1.2 million rubles.

The lump-sum contribution is 350 thousand rubles and there are no royalties at all. The return on investment is very high, in six months you can not only return the money spent, but also increase it.

After signing all the necessary agreements, the franchisee receives regular deliveries of finished products, assistance in organizing a business, advice on choosing necessary equipment, assistance in carrying out profitability calculations and support at all stages of activity.

We open a successful restaurant with a franchise.

Opening a franchise restaurant is quite a promising business, since it is possible to work under a well-known name that is well known to potential customers.

It is also worth considering the possibility of obtaining advice and support on initial stage work, as well as the opportunity to use the existing experience in the formation of the menu, recruitment, training of employees and interior design of the restaurant.

In order to take advantage of the above opportunities, you need to choose the restaurant franchise that is optimal in all respects and purchase it.

How to open a successful franchise dry cleaning business?

The demand for dry cleaning services is growing every year Therefore, it is worth thinking about the implementation of this business idea. Of course, you can open it yourself, but it will take a lot of capital and a lot of time to win your niche in the market. It is much easier to acquire a franchise that gives you the right to use a well-known dry cleaning name, reduce the cost of attracting customers and receive the necessary help and advice in the process of starting your own business.

Today in the Russian Federation there is a wide offer of all kinds of franchises. You can get acquainted with the current offers in the catalog, which is posted on our website.

If you have a desire to choose a franchise, be sure to use it and then you can easily find the necessary offers. To increase ease of use in the catalog, all offers are structured, so that everyone can easily understand and choose the most suitable option.

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

How to open a franchise store

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

Before choosing a partner, you need to evaluate the strength. The franchisor will require the fulfillment of a number of conditions enshrined in the contract. Failure to do so will result in sanctions.

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

Franchise VS self-discovery

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

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

Franchises protect inexperienced entrepreneurs from mistakes and teach the basics of managing companies. The mentor guides and supports the junior partner, not allowing them to make big mistakes. At the same time, the business is constrained by the ideas and intentions of the franchise owner.

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

Rice. 2. Sample layout in the store "Krasny Pischevik"

Advantages and disadvantages

Advantages:

The franchise buyer receives guaranteed assistance from his franchisee. Consultations are valuable because the franchiser is constantly calibrating the terms of his product and business format. Learn from your own and partner's mistakes. Implements changes. Leads a novice entrepreneur to the first result.
No need to come up with new ideas and development strategies. You only need basic knowledge in the area chosen by the franchisee.
Before opening a franchise store, there is already an idea of the popularity of the product, the promotion of the brand. Niche testing and loss of test resources are unnecessary. Reducing marketing costs.
There are cases of obtaining a loan to finance the start-up capital of a junior partner. The collateral for such loans is the property of the senior partner and a surety. Otherwise, it is impossible to get money from the bank for a startup.
The franchisee receives a detailed business plan. Calculated profitability and initial costs. Understand the payback period and return on investment.
Large franchises limit the number of partners per locality. This partially removes dependence on competitors.
Advertising support. Franchise Founder own funds conducts advertising campaigns and brand promotion. This gives recognition to the network of its stores in every city.
Ready bases suppliers, goods, contractors.

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

The dependence of the business on the founder of the franchise. The development strategy remains in the hands of the brand owner.
Initial requirements for opening a franchise store. Renovation of the premises in the chosen style, uniforms of sellers, amount of initial investment.
Dependence on the state of affairs of the entire network in the market. The actions of other partners or the franchise owner may affect the chain's reputation. Poor quality service or products will scare consumers away from the brand.
The price includes the profitability for the franchise seller. Costs for advertising, personnel, communications, etc. increase the price. A business in which a business is a commodity also has profitability and margins. In other words, a similar project will cost 25-30% less if you enter the market on your own.
Periodic royalty payments. They reduce profitability for the store owner.
The contract establishes the rights and obligations of the parties. In case of deviation from the agreement, the parties bear additional costs and fines.

Opening stages. Step by step plan.

Overview of three retail franchises

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

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

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

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 a legal entity or individual to use the company's brand.

More simple:

Franchise – the right to use the brand, technology and experience of a well-known 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, choosing a place to do business, developing an initial advertising plan, and many other things that make it possible to succeed.

It is worth talking about advertising separately. Since in most cases you are buying a ready-made brand, the market has already taken care of it. 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, the free form of a franchise is more typical for the Russian economy, in which the franchisor is only interested in the initial 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 study the positive and negative aspects of starting 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 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 from here follows the main positive side of the franchise - reliability. In fact, after the purchase, you already receive ready recipe how to start 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 a successful business that 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 potential buyers 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. individual conditions, but the essence is about 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 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 successful brand in an average city or metropolis, which is more profitable to launch in central Russia, and which 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. Therefore, it is better to start your own business 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 scope

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 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. Opening stores of famous brands is 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. famous brand it makes no sense to sell a low-quality product - including your 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 get 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 recovered 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 of suitable premises for each city. You can also use consultants from franchisors who will quickly find a place for business. This is one of the advantages of working with medium and large brands.

Step 5. Purchase of equipment

One of the easiest 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: the purchase of goods, the preparation of the premises, the conduct of an advertising campaign and the test launch of the store/restaurant. This process will be led by the franchisor's specialists: their main task is to find flaws and eliminate them even before the launch, along the way teaching the 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 the financial side of the issue.

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 affects in a positive way on sales.

Franchise Examples

In the end, 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 stringent 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;
Pass the 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 of grocery stores in Russia with fairly loyal conditions.

Terms:

Availability of own premises (long-term lease is suitable);
Positive business reputation;
The presence of a 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. Enough profitable scheme for start-up entrepreneurs.

The payback period for the business is 1.5-2 years. A great option for businessmen with no 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.

In Russia, business is increasingly using franchising tools (benefits for entrepreneurs) as an organization of new forms of cooperation. Most entrepreneurs initially think about how to create a franchise of their business, this is when a brand is created in their own business that allows you to make a profit not only from the activities of the entrepreneur, but also from using the name of branded products.

This type of organization of cooperation has advantages, since both buyers of a ready-to-use business project and the seller of the brand benefit from it. Consider how to choose a strategy and organize the work of creating a franchise.

Pursuing entrepreneurial activity, each owner of his own enterprise thinks about its expansion, about how to create a franchise of his business, to have a constant profit from the brand he created. To consider this issue, it is necessary to navigate in special definitions, namely:

Definitions	Explanation
Franchising	In translation (preferential entrepreneurship), the relationship (long-term cooperation) of a number of enterprises with a well-known brand matters.
Franchisor	Headquarters or company that sells known technology and a license to use its trademark.
Franchisee	An entrepreneur who buys the right to use the brand of the main company in his business receives help in training staff from it.
Franchise	Ready-to-use business project, documentation and technologies in business development from the owner of the trademark.
Franchising relationships	They are based on the mutual benefit of the entrepreneur, both the participant who bought the franchise (increase in profits), and the owner of the trademark (advertising and fighting competitors).
	Monetary compensation for the use of a trademark (brand).

Having considered the main definitions that we will use, we will understand why this relationship is beneficial for the entrepreneur and the owner of the trademark. When a novice entrepreneur buys a license (franchise) to open his own business, from representatives of a well-known brand (franchisor), he becomes a franchisee for him. He is provided with training and support at work, no need to look for suppliers, as well as the opportunity to purchase equipment with big discounts from the franchisor's partners.

The franchisee (entrepreneur), having a franchise (license to use the brand), opening a business, does not remain with the obstacles that arise in business on his own, he will always be supported by the parent company (franchisor), there are fewer risks. The franchisee is an independent partner who can always have support, he is the head of his business.

A franchise geographically in the region divides the conduct of business of the same type, the distribution network coverage of the region is determined by the franchisor, issues such as:

The seller-buyer relationship is optimized.

The issue of product competition is being addressed.

Franchising relationships

It is necessary for businessmen who are thinking about how to make a franchise ─ to understand that, being the main organizer, he will have to provide partners (small business owners) with a license that gives them the right to independently conduct business activities using the organizer's trademark.

Both parties win in this relationship.:

parent company provides technical documentation and experience, technological equipment;

the organizing company (franchisor) advertises products, supplies materials for production;

an entrepreneur who has bought a franchise remains an independent enterprise in his region, he pays monthly fees (royalties) to the franchisor.

It often happens in these relations when, in addition to advertising, leasing equipment, technology can provide funds for business development to a small enterprise (loan), on a contractual basis.

In other words, franchising relationships are the association of large businesses with entrepreneurs in order to expand the market and effectively sell products.

Specialists distinguish between several types of such relationships, these are:

The provision of franchising services is a method used by foreign companies, opening in the cities of the Russian Federation by purchasing premises or renting training centers. An example of this activity is McDonald's.

Networking through product franchising - when a community services or product distribution network is required to use the brand name of the main company, it also provides new techniques, does advertising, supplies equipment, and provides training for small business employees.

In addition to the positive aspects, it is necessary to consider the negative impact on the activities of a franchise entrepreneur ─ when there are restrictions on the conduct of business activities in contracts, when the franchisor creates the conditions for relations as much as possible for himself. Suppliers must be provided on the recommendation of the main enterprise, even if the material can be obtained cheaper in the region.

Very often, before asking how to create your own franchise, you need to understand why a novice entrepreneur, in addition to getting equipment and materials for almost nothing, is also willing to pay for the experience that you have? In other words, many who will buy a franchise are buying the right to go in their business along the path that you “trodden”. For this reason, before doing a franchise business, you need to organize your own successfully operating network, win a trademark and a part of the market for your products.

Having your own branded product and several stores will make it much easier to attract customers to buy a franchise.

How to form a franchise

Every event must start with theoretical substantiation, ─ when an entrepreneur can clearly imagine the entire format of his activities. To facilitate this task, it is necessary to answer three main questions, these are:

at what stage of development is my own business now, what are my achievements in it;

organizing new format(franchising) what I want to achieve;

what means and resources do I need to use to implement the new format (personnel, finances, time, equipment and other resources).

A businessman must realistically evaluate his products, how popular they are among buyers and how much profit their sale through outlets brings. You need to understand what kind of experience you can transfer to the franchisee. Based on the answers to the questions, you can understand who will be interested in cooperation with you, and start forming a franchise.

Requirements for the franchisor

Consider the activities of a certain company that will explain ─ how to create a franchise on your own, and answer what requirements apply to franchising, as well as what goals you need to achieve. Let's take a look at the goals:

Receiving specific profit from franchising as an additional income.

Expanding the sales network, opening stores and outlets.

Achieve an increase in the turnover of products from the franchisee of at least 150 thousand rubles in 30 days per outlet.

You can specify a list of cities in which it is planned to open trade, expand business on regional grounds.

Prevent the use of a trademark without a license agreement (franchise).

Development own production and increase its products on the market in share relations to 60-80% by the end of 2016 and up to 90% by 2020.

To work on the popularity of the brand, creating a good image of it among buyers.

Increase purchases in the regions, reduce European supplies by 3-5% for every 2 years.

Load the available capacity to the maximum value.

Work with partners on the profitability of their stores is not less than 30%.

A businessman creating a franchise must understand that it is necessary to always strike a balance between the budget for the event and the available resources, ─ the main task at the initial stage of the franchise program.

There is a reasonable risk when simple goals are set, then the profit may not cover the costs that will have to be spent on promoting the franchise. Too much lofty goals with big ambitions can put a team that is engaged in a franchise, put to a standstill.

Russian legislation does not differ in strict measures for the activities of the franchisor, therefore, how to franchise your business ─ at the legislative level, it has advisory requirements for the main companies.

Experts say that any company in the Russian Federation can declare itself a franchisor, and there is no law prohibiting this activity, even if it is engaged in non-release final product, and the supply of material. The existing means of Internet sites for a certain amount will place advertisements for these franchises, which in fact will not withstand even the simple requirements that the franchisor must fulfill.

The presence of at least one store selling their products.

It is possible to organize an outlet depending on the seasonal demand for products.

The success of your own business, with the criteria for the payback of production, it is desirable to have detailed calculations. It is important to calculate success not by the cost of goods, but by the price of the franchisee, taking into account royalties, and other contributions in favor of the franchisor.

Have a registered trademark, sign.

If the calculations with all the deductions show a good return on production, then the franchise can be successful.

How to start a franchise without having your own brand, TK (trademark), ─ at a minimum, experts believe, submit a package of documents to the patent office for the types of products that you will work with in order to receive the priority of the application, this is your first document. Experts noted that the time interval from filing documents to obtaining a trademark takes at least 12 months.

The desire to start selling a registered franchise as early as possible encounters a circumstance ─ the status of the copyright holder, which gives the legal right to receive royalties (compensatory contributions) from your partners.

It is also necessary to think over when the franchise is from the service sector, how to organize monthly contractual payments, in what form the claims for royalties and a one-time fee for joining your partner network (lump-sum fee) will be described in them.

At this stage, specialists recommend concluding a license agreement with partners on preliminary agreements, which reflect the signing of the main license agreement after obtaining the status of the copyright holder. This agreement acts as a guarantee of the signing of the main agreement for both parties.

Franchising package

What is needed to create a franchise ─ what documents, according to experts, in Russia reflect the creation of a franchise, these are:

a developed business concept, with contracts;

have your own network;

availability of documents for the conduct of franchising.

It is the concept of developing your own business that allows you to form a good relationship between the franchisee and the manager of the main company.

In the concept of your business, reflect the nuances of relations with the franchisee that cannot be shown in contracts, these are:

opening of new points, for a specific period;

increase the turnover of the products of your business and the business of the franchisee;

indicate at whose expense the training of the new employee will be carried out if the old one has left the franchisee.

Always opening a franchise, there will also be territorial issues that need to be properly regulated, because your outlet and the franchisee point can be in the same region. Resolve issues with wholesalers about the supply of materials. It is difficult for a novice franchisor to understand these issues.

Existing Franchise Standards

How to make a franchise for your business that would meet the established standards (not rigid)? Experts recommend some basis that shows how to apply the brand (logo, trademark).

Name	Requirements
Brand description	History of creation, how the brand is positioned. For what target audience she is released. The presence of a logo. Its sketch, description of security, options for non-permissible applications. Business card with brand name. Badge for employees, company logo.
Premises for a retail outlet, organization of an enterprise	The format of the products being traded. Requirements to the production area. Selection of premises according to the required dimensions. External design of premises, buildings. Equipment and technical documentation. Required software.
Staff	Required minimum staff, its qualifications.
Products and services	Characteristics of the products sold, and what types of services are provided.
Training	Distance or face-to-face training. Certification and training in marketing.
Reporting	Necessary payments to the franchisor, the company's own documentation.
Working hours of the enterprise, outlet	The time interval of work by hours, days, months for the current year.

Operational Management Means Standards:

conclusion of an employment contract;

agreement on material or individual liability of personnel;

agreement on confidentiality of all information (corporate ethics);

employee questionnaires.

Advantages when opening a franchise, possible disadvantages

A businessman who opens a franchise receives:

new investments in your business through contributions from partners;

supply conditions are improving (volume increase);

business is improved regionally due to the activities of the franchisee.

A trademark becomes more famous when the number of partners increases, which indicates a successful franchise. It is necessary to control remote franchisees.

The disadvantages that may appear with the opening of a franchise are:

loss of confidential information, new techniques in technological processes;

deterioration of one's own reputation when the franchisee does not work efficiently;

profitability for franchisees is much lower when products are sold in their own network.

By opening a franchise, a businessman becomes a franchisor, and it is very important to always support entrepreneurs (partners) who have bought a franchise. Be sure to maintain constant contact with the franchisee. Conduct employee training on new methods of technological processes.

Liked the article? Share with friends on social. networks:

Franchise catalog. Turnkey business. Help in the selection. opening a franchise business Krasnokamensk - franchise catalog

2017-04-29 15:42:04

Franchise catalog. Turnkey business. Help in the selection. franchise business for sale Udachny - franchise catalog

2017-05-02 13:20:58

[…] The last factor allows even inexperienced, novice entrepreneurs to count on success in their commercial projects. This article will help you understand what a franchise is, where and who uses this method of organizing a business, how you can reduce costs when buying a franchise, etc. We also recommend that you read the following articles - "what is a franchise" and "how to create a franchise of your business." […]

Franchise catalog. Turnkey business. Help in the selection. opening a franchise business Volzhsk - franchise catalog

2017-05-10 07:45:38

Franchise catalog. Turnkey business. Help in the selection. how to open a franchise business Miner - franchise directory

2017-05-12 07:55:24

Franchise catalog. Turnkey business. Help in the selection. profitable franchise business Zavitinsk - franchise directory

2017-05-19 09:13:45

Franchise catalog. Turnkey business. Help in the selection. small business franchise Akhtubinsk - franchise directory

2017-06-10 14:01:28

[...] РџРѕСѓР »РμРґРѕРёР№ С" R ° РєС,РѕРѕР рР рР рР · РІРѕР "СџРμС, СђР ° СѓСѓС ‡ РсР ° Р¶Рμ РѕРμРѕРїС <С,РѕС <Рј РѕР ° С ‡ РёРЅР°СЋС‰РёРј РїСЂРµРґРїСЂРёРРЅРєРјР°С‚РµR»СЏРј РЅР° СѓСЃРїРµС… РІ РёС… РєРѕRјRјRµСЂС‡РµСЃРєРёС… РїСЂµ… P”P°PSPSR°СЏ СЃС‚Р°С‚СЊСЏ РїРѕРјРѕR¶РµС‚ Р'Р°Рј RїРѕРЅСЏС‚СЊ, С‡С‚Рѕ С‚Р°РєРѕРµ СёСЂР°РЅС€РіРґР° РєС,РѕРѕРїРїРѕР »СњР · СѓРμС, С,Р ° РєРѕР№ СѓРїРѕСѓРѕР ± РѕСђРІР ° РѕРёР · Р ° С † Ruro Р ± RUR · RѕRμСѓР °, РєР ° РєРјРѕР¶РѕРѕ Р °РѕРѕРѕРѕ СѓРѕРёР · РёС Сњ СђР ° СѓС ... РѕРґС < РїСЂРё РїРѕРєСѓРїРєРµ С„СЂР°РЅС€РёР·С‹ Рё С‚.Рґ. R РμРєРѕРјРμРѕРґСѓРμРј С,Р ° Рє РєРμ РѕР · РѕР ° РєРѕРјРјС,СњСѓСџ СѓРѕ СѓР »РμРґСѓСћС ‰ RёрјРё СѓС,Р ° С СњСџРјРё - in" С ‡ С С,Рѕ ° РєРѕРμ С "СђР ° РѕС € RUR ·Р°В» Рё В«РєР°Рє СЃРѕР·РґР°С‚СЊ С„СЂР°РЅС€РёР·Сѓ СЃРІРѕРµРіР…В». […]

Franchise catalog. Turnkey business. Help in the selection. opening a franchise business Mozhaisk - franchise catalog

Having caught fire with the idea of creating his own business and having viewed hundreds of seemingly profitable franchise offers, an aspiring entrepreneur with fire in his eyes runs to his future mentor partner to buy a franchise. And it's good if the partner turns out to be a real mentor, and the franchise offer is really profitable. And if not?

After reading this article, you will learn:

How to avoid the 12 most common mistakes new franchisees make
How not to run into scammers
What you need to know when choosing a franchise
How to negotiate with a franchisor
and much more.

So you've decided to buy a franchise. How not to make a false choice?

Beware of fakes!

To begin with, it is worth familiarizing yourself with what franchises are, selling which companies are engaged in, one might say, fraud. There are three kinds.

Firstly, shell franchise. Entrepreneurial citizens create a trademark and copy all the attributes of some popular brand - from corporate colors to the terms of the franchise package. As a rule, such a trademark is not even registered. An inexperienced franchisee takes the bait and buys a worthless franchise.

In addition to external similarity, such a franchise has nothing to do with a popular brand.

It has no commercial value. the main objective creating a shell franchise is to make a quick profit, push the franchisee to buy a franchise whose price is based on false popularity and fame. Only after signing the contract, an inexperienced entrepreneur feels all the consequences of a rash purchase.

The unfortunate franchisee pays for the mistake not only with his money, having bought a dummy, but also with his reputation. The owner of the original brand, having discovered a fake, can sue, and for both the buyer and the seller of the franchise. Using a stolen idea and delivering a low-quality product, the franchisee will forever lose the trust of customers and partners.

There are enough examples of empty franchises. So, the famous pseudo-franchise « ZaraZara» at some point had more outlets in Russia than the original Zara. Or Eurosvyaz- the prototype of Euroset, too lazy to come up with even a different logo.

Naturally, the fight against such dummies and plagiarists is carried out by the owners of real brands. For example, recently the company "PrintInstvud" I ran into a similar problem when I discovered my doppelgänger. The owners of the original product learned about the pseudo-franchise from a franchisee partner and found out that the owners of this dummy, pretending to be potential franchisees, stole the contract form, image and concept of machines from PrintInstvud.

“We developed the model ourselves, appearance of their machines and, accordingly, we produce them ourselves. In order to coordinate the appearance of the machine with the franchisee, we send him a visualization - a layout of how it will look like. On the website of the pseudo-franchise, we saw fragments directly from our presentation. Now we are working to ensure that the site of scammers is closed, ”a representative of PrintInstvud shared information.

The second enemy of a potential franchisee is one-day franchise. Very beautifully painted benefits, backed up by convincing but unverified facts. A wonderful tale that is told to the franchisee so that he pays the entry fee. Literally a week after he gives the money, the buyer will never see or hear from his “franchisor” again.

Such companies and franchises are created with the aim of making money and disappearing.

So we urge you to pay attention to the date of registration of the company and the date of opening the franchise. If both dates are doubtfully recent, then whatever they say or promise, it is better to pass such proposals by the side.

And the third, but not the most terrible enemy are "raw franchises". A young company with a promising business, which, in principle, is doing well, decides to open a franchise. However, she has neither experience, nor well-developed business schemes, nor the ability to provide proper support to franchisees. That is, in this kind of franchises, again there is no thing for which people actually buy franchise offers.

“Unfortunately, there are more and more such companies in recent years. Now there is a kind of “franchise fashion”, i.e. many entrepreneurs, even if they have only recently started a business and are not yet very well versed in it themselves, are quickly trying to create a franchise and start selling it. It is clear that in this case, there is no question of any quality of materials and the transfer of real experience, verified and proven technologies. This devalues the very concept of "franchise", - the representative of the company shared his opinion Maxim Seryakov.

The “raw franchise” has two possible development paths. The first is that the business will close in a couple of years, bringing both the franchisor and its franchisee only losses and a damaged reputation. In the second case, together they will find ways out of difficult situations, checking the efficiency of the business model for errors. However, in this case, a logical question arises: why give money for a franchise if you have to go through all the same stages as when opening a business on your own?

Think with your head

A very serious mistake of a novice franchisee is excessive trust in the franchisor's forecasts. IN large companies, as a rule, there are franchise departments involved in sales. It is clear that their goal, no matter what, is to sell their franchise. We do not want to say that you can not trust anyone and that everyone is completely deceitful. But given the risks that the franchise buyer takes, he should be more critical of the promises of the franchisor.

It would not be superfluous for a partner to independently analyze the market in the territory of the proposed business location. If you are going to buy a franchise for a small town, then it may well turn out that a product that was in great demand in the center of the capital will be completely unclaimed in your case. It is also worth looking for nearby competitors, perhaps there will be so many of them that there is simply no point in opening a business in this area and in this place.

Plan your budget

Franchisees need to calculate their costs at the initial stage and acquire a monetary airbag, in the amount at least 1/3 from the initial investment. When starting a business, there are always unforeseen but necessary expenses and hidden fees. Therefore, we recommend discussing the budget in detail with your franchisor, since companies usually indicate the average amount of required investments in franchise presentations.

In turn, the company "Sweetberry" tries at the first consultation to identify such misconceptions among the franchisee.

“At the very beginning of negotiations, we give a detailed budget, detailed information on the costs of opening, on doing business for the first six months after the opening and for each future season. We don’t have hidden payments, the website publishes the calculation directly for the implementation of the project launch.” - a representative of the company shared her experience Anastasia Salova.

You need to understand that in addition to the initial investment for the launch, you are waiting for monthly expenses for salaries, rent and other expenses not offset by income. On average, for three to six months, you will only invest in a business, working in the red, until you reach the break-even point. Only after that you will be able to start your way to the next frontier of the business plan - the payback point**.

*Break-even point is the sales volume at which revenue covers expenses. In fact, you go "to zero". The company will only make a profit when you start selling additional units of production.

**Payback point - the moment when the amount of earned profit covers the initial investment.

Get everything in writing

With the franchisor, you can agree on anything, but All your agreements must be in writing and signed by both parties. This is a smart way of doing things. Because relations between partners are built on documents, on what is recorded in them. Use at least e-mail correspondence, for the convenience of communication and control over the obligations taken. The promises of the franchisor, not supported by anything other than an honest word, can cost you dearly, since there will be nothing to refer to.

Read what you sign

A new partner needs to study the entire package of documents in the most detailed way. As already mentioned, this is what the entire business of the franchisee will be built on. Pay attention to the very name of the contract.

In Russia, franchising as a type of business is not legally fixed and is regulated mainly by a commercial concession agreement or a license agreement.

Be careful about the term of the contract, it must be at least three years, as well as to the territory in which the franchisee can use the granted rights. It is important to check the company's documents for the right to own intellectual property, request copies of the trademark registration certificate and independently check its number on the Rospatent website.

If you do not understand the documents at all, then it is better not to save money and hire a professional lawyer! By saving on professionals, you can go broke.

No need to brand

Buying a franchise of a popular brand does not yet give you a 100% guarantee of success. Of course, well-known companies, as a rule, take a responsible approach to opening a franchise and really help their franchisees develop a successful business. However, there were situations exactly the opposite, when partners went bankrupt by buying a popular franchise.

Chat more!

You should not limit yourself to communicating with only one representative of the company, moreover, if his main task is to convince you of buying a franchise. Talk directly to your manager and also to the people you will be working with. Your task is to get as complete a picture as possible about the franchise and the business you will be involved in.

To be successful in franchising, at a minimum, you need to learn as much as possible about the company itself.

“Determine the scope of the company’s business, find out what way the franchisor offers to sell its products, pay attention to the type of goods and services, the advantages of the franchise, whether the company is a manufacturer, what is the quality of the products and the geography of distribution of franchised enterprises,” the representative of the company shares his opinion "NANOPROTECH" Sergei Selyakov.

Be sure to find contacts of other franchisees of this company, including former ones. We recommend that you come and see how the current business works under the chosen franchise, communicate with the franchisee, hear first-hand feedback about the company that will become your franchisor.

If you're looking to acquire a non-exclusive franchise in your region, it's worth finding out about the location of your closest fellow competitors and agreeing on a sphere of influence.

If the franchisor hides the location and contacts of his franchisees or any other information from a potential partner, it is clearly not worth doing business with him.

Ask the Right Questions

Talk to your franchisor and find out not just how many franchises the company opened, but how many closed and why. It would also be nice to know how many enterprises are reopening, that is, are franchisees limited to opening only one point? This information will be very valuable to you. Again, if the franchisor does not want to provide you with complete information, you do not need to start a business with him. You don't want to buy a pig in a poke, do you?

“Transparency and purity of relations are a priority for our company, therefore, during negotiations, we do not try to hide information about isolated cases of closed franchise stores. On the contrary, we talk about what caused the failures, what mistakes the franchisees made. We are convinced that the key to the successful development of the franchising system is, first of all, open and honest relations,” the company explained its position.

Don't Avoid Learning

Franchisees should adequately assess their strengths and knowledge. The decision to run a franchise business comes from different people, with different experience. Someone has no business practice at all, someone has experience in leadership positions, and someone already has own enterprises opened from scratch.

Whatever tremendous experience work in the business was not behind your shoulders, training from the franchisor is necessary!

He will explain how to start a franchise business from scratch in a field that is completely new to you. After all, every industry and every company has its own characteristics, which you may not even be aware of.

Education important element when buying a franchise! An experienced franchisor should transfer knowledge, proven methods of work and schemes for building a business to you. Learning and developing, constantly improving, is necessary for every entrepreneur who intends to build a profitable business for many years. Otherwise it is impossible to achieve success.

“When we offer franchisees to listen to our recommendations, we do not question their life and professional experience. We pay attention to the difficulties, possible difficulties, specific aspects of our particular business model, trying in this way to make it easier for partners to own way in business,” notes the co-owner and founder of the TM franchise "Orange Elephant" Zhanna Asatryan.- “As a rule, very creative franchisees start experimenting from the first month, believing that after working for 2-3 months, they understand better than the franchisor what, when and in what ratio they need to sell. Such experiences always end badly. A franchisee rarely survives a year and closes with a pile of debt to suppliers. We part with such would-be franchisees, usually mutually dissatisfied with each other.

Don't expect everything to be done for you.

In the world of franchising, there is one big myth that when acquiring a franchise, a person does not need to try and invest in work. However, a franchise business is the same business in which you need to work and think all the time - first of all, the franchisee himself. Yes, the franchisor provides already proven developments and helps the new partner avoid many mistakes, but the direct owner manages his business first of all.

Together with the franchisor, the partner should strive to optimize the business, eliminate errors and develop. Of course, to begin with, it is important to set up the work of your enterprise and learn a lot new information. However, you cannot stop there and together with your mentor you need to move forward, look for new opportunities and eliminate inefficient mechanisms.

“The Personal Solution company, even at the stage of selling a franchise, tries to convey to people that our business (like everyone else) requires a lot of time and effort. We try to immediately prepare people for the fact that they will have to work hard, they will have to study and master a huge amount of information, they will have to work on themselves and rebuild their way of thinking, ”says a representative of the Personal Solution company Maxim Seryakov.“When communicating with partners, we also try to develop their independence, entrepreneurial approach and teach them to think with their own heads before taking action. Because the success of any business primarily depends on the entrepreneur himself, and even the most detailed description technologies of work cannot cover all possible situations that the franchisee may face.

Choose the best for your team

Company employees are the face of your business. And a very gross mistake of the franchisee is the lack of due attention to their selection and training. “Many entrepreneurs may underestimate the importance of staff. Nevertheless, competent qualified personnel is at least 60% of the company's revenue and success,” comments the head of the franchising department of the optics salon network "Happy Look" Olesya Ivanova.

The quality of work of your employees directly affects the reputation and profitability of the company. Not without reason, most franchisors have a separate system for selecting and training their staff.

“In the Happy Look company, all franchisee personnel undergo a mandatory two-week training at the company's main office. Such training has several stages and is completely free,” says Olesya Ivanova.

However, staff travel can be very expensive and inconvenient due to the fact that people are interrupted from their work. However, franchisors have found a solution to this problem. Yes, the company "Express office" conducts the entire course of study online. To do this, interactive diagrams and methodological manuals are presented in electronic form, a corporate chat is functioning that unites the company's employees from the head office and official representative offices in the regions.

“We have a training center that helps staff become highly qualified professionals. Thanks to him, everyone new employee practically from the first days, he is well versed in his work and further improves his knowledge and skills,” the representative of trading network office furniture Dmitry Sokolov.

Customers interact directly with your employees and judge your business by the quality of their work. Not without reason, managers are strongly advised to visit the so-called mystery shopper at their own enterprise. You will be able, based on personal feelings, to understand what opinion visitors and partners have about you.

Don't Treat the Franchise as a Hobby

A franchise business is not something you can only do in your spare time. It is work and constant work. Therefore, you should not think that this is a kind of passive income, and you can transfer all the worries into the hands of managers. As soon as you step back from business, the business will disappear. So if you are not ready to devote all your time to the development of your business, you should not buy a franchise.

So that you can always do right choice when buying a franchise offer, the BIBOSS business portal publishes annually, which has absorbed the best offers for business in Russia.