Franchising versus the organization's brand. Features of the application of franchising on the example of Russian organizations

FRANCHISING
FRANCHISE
FRANCHISE
FRANCHISER
TRADEMARK

The article discusses the essence of franchising, the features of its application on the example Russian organizations, as well as existing problems in this area and ways to solve them.

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With a high growth in turnover of large and medium trading companies for the survival of small businesses one of the most effective tools is franchising. In the Russian market, franchising, as a special form of doing business, has established itself over 10 years as a profitable way to develop entrepreneurship due to the reduced risk of counterparties, but at present there are many obstacles to its functioning.

Franchising means a certain system of relations between market entities when one party (the franchisor) transfers to the other party (the franchisee) for a fee the right to act on its own behalf using trademarks and / or brands. The franchisor has a "promoted" trademark, and the franchisee has the desire to work under this trademark and the corresponding opportunities that meet the requirements of the franchisor. In a general sense, franchising is the "lease" of a trademark or commercial designation.

AT Russian legislation franchising relations are regulated by a commercial concession agreement. The commercial concession agreement provides for the use of the complex exclusive rights, business reputation and commercial experience of the right holder in a certain amount, with or without indication of the territory of use in relation to a certain area entrepreneurial activity(sale of goods received from the copyright holder or produced by the user, carrying out other trading activities, performing work, rendering services).

The parties to a commercial concession agreement may be commercial organizations and citizens registered as individual entrepreneurs. The subject of a franchise agreement is a franchise. The content of the agreement can be different, from simple to very complex, containing the smallest details of the use of a trademark. The contract regulates the amount of deductions for the use of the franchise. She may be:

fixed,
one-time for a certain period,
a percentage of sales.

There may be no requirement for deductions, but in this case, the franchisee undertakes to buy a certain amount of goods/works/services from the franchisor. A franchise can be a business method, trademark, technology with mutual obligations and benefits between the franchisor and the franchisee, provided for a fee and executed in accordance with the law on the protection of intellectual property. Conditions for the use of a trademark/brand may serve as a separate clause of the contracts. These requirements can be very simple or strict.

In Russia, the active development of franchising falls on the late 90s - early 2000s, this was due to the fact that domestic entrepreneurs considered it convenient to use it for development own business. It is noteworthy that the prerequisites for the emergence of franchising in Russia appeared already in the 17th century, when the legislative formation of the legal protection of trademarks began.

The very appearance of the institution of franchising falls on a period when national borders are opened for foreign capital, and the economy is moving to market relations. It was at this time that Russians became active users of Kodak film and many other foreign brands. But along with foreign franchises, domestic ones, for example, the network Catering Rostics.

At present, the share of Russian entrepreneurs using franchising is constantly growing, an example is the spread of such well-known chain stores on the market as Shokoladnitsa, Fix Price, Parisianka and many others. Let's take a closer look at these franchises.

The franchise of the Shokoladnitsa coffee chain is today one of the largest and most dynamically developing companies in the restaurant business both in the regions of Russia and in the CIS countries. By partnering with the Shokoladnitsa chain of coffee houses, the franchisee gets access to a unique system designed for the design, construction, opening and operation of coffee houses.

The positioning of the Shokoladnitsa brand is associated with loyalty to traditions and high quality standards. Coffee houses of the "Shokoladnitsa" network should be located in historical places of the city, in shopping and business centers, in other words, at points with high traffic.

Relations between the franchisee and the franchisor are formalized by a commercial concession agreement, which is valid for 5 years. The franchise price of the Shokoladnitsa chain of coffee houses is about $ 70,000 for the entire package with a 7% monthly payment from gross revenue. The payback of this franchise is highly dependent on attendance and is estimated at 18 to 36 months. Investments in this project range from approximately $200,000 to $430,000.

The benefits of acquiring this franchise are the unique concept of coffee houses, the opportunity to purchase high-quality products and equipment from certified suppliers at exclusive prices, the support of coffee business professionals in matters related to know-how, management, marketing, employee training and advertising throughout the entire term. operation of the commercial concession agreement.

Franchise trademark"Fix Price" allows you to practice retail products and non-food items. The main essence of the project is to open a retail store-supermarket with goods at the same price. It is noteworthy that this network outlets is currently the only one of its kind in the entire territory Russian Federation(255 stores of this brand were opened in 68 cities). Fix Price stores are located within a radius of 600 kilometers from Moscow, while in the rest of the Russian Federation, stores of this brand are opened through franchising.

The acquisition of a franchise of the brand "Fix Price" is possible after paying a lump-sum fee, that is, its cost, which is 25% authorized capital trading operator. Payback this project estimated from 12 months. Investments for investing in this franchise approximately range from 3 million rubles. with a monthly payment of 3% of the turnover of the outlet.

The advantages of franchising stores of the Fix Price trademark is that the franchisee receives full support for doing business at all stages of cooperation, and all stores of this brand are united in information system based on the SAP R3 software package. Also, a great advantage is that after the expiration of the franchise agreement, the franchisee has the opportunity to sell the store at a bargain price.

Franchise brand "Parizhanka" is the only lingerie company of its kind that offers franchising of multi-brand products. This multi-brand allows the franchisee to cooperate with the largest European manufacturers and not depend on a single manufacturer. The positioning of the trademark "Parisianka" is associated with a flexible multi-brand format and many years of experience.

To purchase this franchise, investments in the amount of 880,000 rubles or more will be required. up to 2,000,000 rubles, depending on the area commercial premises and rental cost. The payback of this project is estimated from 6 months. To open a Parisian franchise store, the franchisee will need less than 2 months, during which time the franchisor develops a store design, manufactures equipment and delivers goods. It is noteworthy that the franchisor does not require monthly payments from the gross proceeds for its use.

The advantages of the Parisianka franchise are that for the franchisee, the parent company facilitates the process of opening a store and takes care of all the main concerns; the buyer of this brand also has a choice of the range of goods sold, its price category and the style direction of their collections.

Franchises discussed above Russian companies have common features, which consist in the fact that the franchisor provides various support for doing business with these trademarks. Despite this, there are various problems that franchising participants face:

1. After the expiration of the contract, and, possibly, its early termination, the franchisee continues to use all the now known technologies, simply by changing the name of the product, moreover, having already regular customers.

To avoid this scenario, the franchisor should take into account all possible ways for the former partner to leave, along with his secrets, consulting the relevant specialists on this matter.

2. In Russia, there is no necessary legislation to define franchising relations and regulate them . So, the mention of franchising in the legislation occurs only in the 54th chapter of the Civil Code of the Russian Federation, in which franchising is identified with a commercial concession. At the same time, according to the Russian Franchising Association, the presence of this chapter in Civil Code The Russian Federation is considered undesirable for the development of international contacts in the field of franchising, which contributes to the growth of the creation of bypass legal schemes.

To create an effective legal framework for entrepreneurs using the franchising system, three goals must be achieved:

ensure transparency of the entire franchising system for regulatory authorities.
create conditions for the application of legal acts of all franchising participants
ensure real competition between different franchising systems based on the traditional sale of products and services.

Thus, the use of franchising in the Russian market has great prospects. Thus, according to the European Franchising Association, over the past three years, franchising in the Russian market has increased by 98%, and further development is predicted over the next five years, with significant growth in the service and B2B services market, which corresponds to the development of franchising in the rest of the world. Every year the number of franchising projects doubles, despite the problems that exist in the field of franchising.

Bibliography

Rimskaya S. V. The evolution of the franchising institution in the Russian Federation and countries of Western Europe [Text]: S. V. Rimskaya // Law: history, theory, practice: materials of the international. scientific conf. (St. Petersburg, July 2011). - St. Petersburg: Renome, 2011. - S. 37-40.
Shane, S. From ice cream to the Internet: Franchising as a tool for developing and increasing the profitability of your company / Per. from English. O.V. Warm; Under scientific Edited by E.E. Kozlova [Text]: Dnepropetrovsk - Balance Business Books, 2006. - 208 p.
How franchising is developing in Russia: problems and prospects [Electronic resource]: http://www.ru.rusfranch.ru/presscenter/newsraf/304/
Franchise of a chain of stores [Electronic resource]: http://coolidea.ru/franchising/store

In connection with crisis situation in the country and large quantity cuts in the workplace, many Russians have a natural question - what to do next? For those who have savings and have the opportunity to invest in a business, as well as for those who want to start their own business, but are afraid to take risks, this article is dedicated.

Today we will talk about the advantage of building a business under the auspices of a large developing company that has established itself in the market and has a recognizable, salable brand. Already guessed? Let's talk about a franchise business.

What is a franchise, and what is it eaten with?

The franchise method came to us from the West, and one of the most striking examples of this type of business can be called the famous chain cafes.

Their undisputed leader is MacDonald's, followed by Starbucks, Shokoladnitsa and others like them.

This does not mean that the sale of franchises is concentrated only in the food service industry.

You can buy an auto parts store franchise or open a franchise tourist agency, you can become an anti-collector lawyer, or install vending machines. Even the production of PET bottles for draft drinks is now franchised.

What is it all about?

Franchise – sale of a ready-made business model that is already established in the market.

The buyer - the franchisee - is given the opportunity to invest a certain amount of funds and start a business in a short time, under the name of a well-known company.

Do you want to open a restaurant? A little-known cafe will collect a pool of loyal customers for a long time. Open McDonald's - and only one outdoor advertising will attract people to you from the very first days.

Sells a ready-made business model by its owner - franchisor . To purchase a franchise, the buyer must pay a lump-sum fee - a one-time payment for the opportunity to be included in the list of partners. Essentially a membership fee. Then, monthly or quarterly, the franchisee pays royalties for work under a franchise - a percentage of income. These are the basic conditions for running a franchise business.

There are some companies that do not charge a lump sum. Some waive royalties by charging a one-time payment.

Find this information you can by reading the "Franchisee" section on the website of the company you are interested in or by calling the contact numbers indicated on the website.

How do you know if a company offers a franchise job?

At the moment, all major networkers use this method work.

It allows them to expand their regional network without creating competition in the market, to control the development of the brand and increase its awareness. Plus, this is an additional, and sometimes very significant income.

In order to select the most interesting franchise, you should refer to specialized catalog sites.

They usually contain cards of companies, with the conditions for working on a franchise, indicating a lump-sum fee and royalties.

The choice of a franchisor can be made either by the direction of its activity, or by the rating of the company. Each option has its own advantages. But special attention should be paid to what profit is predicted by the franchisor, and what are the payback periods for investments.

The most popular lines of business that can be created by franchising:

trade;
services sector;
public catering;
Production of goods.

Advantages and disadvantages of running a franchise business

Let's talk about what you get from working under a well-known brand.

Benefits of a Franchise

As already mentioned, the first advantage is a well-established business model.

This will allow you to simply follow the instructions of a personal mentor, and quickly launch your own business, avoiding almost all the "pitfalls" that a novice entrepreneur faces when starting his own business.

The second advantage is a recognizable brand. A company that is on everyone's lips inspires more confidence in the consumer.

People are more actively buying or using the services of trusted market players, for them your company is part of a familiar and familiar network. They are confident in the quality of goods/services. This allows you to reduce the impressive advertising costs that are an inevitable companion of novice businessmen.

Minimal risks. Compared to new projects, success franchise companies several times higher. According to statistics, about 14% of entrepreneurs who bought this or that business model could not get used to this niche and develop normally.

Your franchisor is interested in the successful start and development of your enterprise, as it brings income not only to you, but also to him.

Therefore, constant support and consultations from his side are provided to you.

We should also mention more loyal lending conditions for a franchise business, since your franchisor can act as a guarantor between you and the bank.

Banks are willing to accommodate such clients, and this will greatly simplify the procedure for obtaining a loan for business development or replenishment of working capital.

A clearly defined amount for starting your own business can also be attributed to the advantages of working under a franchise. You know exactly how much money is required to pay a lump-sum fee, directly register legal entity or individual entrepreneur, renting premises and purchasing the necessary assortment (if necessary).

The results of this section will look like this: Working under a franchise famous brand, You are getting:

easy start;
ongoing consultations;
support for mentors;
ready business model;
recognizable brand;
consumer confidence;
quick payback;
ease of obtaining a loan;
minimal risks.

Now let's talk about the disadvantages.

A considerable number of entrepreneurs believe that a franchise is certainly very expensive. In fact, there are franchises with minimum investment. By clicking on this link you will find out which franchise options will cost you a small amount.

Flaws

Despite the fact that by buying a franchise, you become a full business partner of the franchise organization, be prepared for the fact that a full partnership can turn into total control over the quality of service and the very conduct of business by the franchisor.

Not all companies “sin” with this, but in a number of rules of certain franchisors (for example, McDonald’s), you can find such items as the rules for wiping tables after a client. And after all, they will monitor this, and check it too!

The first disadvantage of working on a franchise is that you must strictly follow the rules of work that are developed by the franchisor and adhere to all the rules for servicing clients / buyers established by him.

The second drawback is the total control by the franchisor and frequent checks of your business.

If you violate the rules of work adopted by the company, you may be subject to penalties. This is due to the fact that the franchisor monitors its reputation, hence the need to work according to strict rules. The essence of this approach is still clear - all these checks and rules are aimed at gaining consumer confidence.

Work according to generally accepted standards and high level customer service aimed at promoting the brand and winning its love among customers. This plays into your hands, in the end - after all, who will go to a store or cafe where waiters or sellers are rude to the client?

A tough approach to training new employees will eventually lead to a positive result, but it can also get on your nerves.

Therefore, this disadvantage can be attributed to conditional - it all depends on your attitude to this kind of control.

The disadvantages include the fact that a franchise business requires relatively large investments at the first stage.

Starting a business with 100 thousand rubles will definitely not work. Minimum start-up capital for future franchisees - from 500 thousand rubles. Better - from 1,000,000 rubles.

Brand dependency also has its downsides to keep in mind - if your franchisor suffers losses or closes, your business will be affected as well. The franchisor's losses are your losses, the closure of his business means the end of yours, since you are running a business under a franchise while the contract is in effect.

Conclusion

Despite certain shortcomings, more than 9,000 enterprises successfully operate under a franchise in Russia, and their number is growing every month. In order to avoid risks, it is enough to choose a reliable franchisor and carefully study the terms of the contract under which you will work.

Therefore, if you are thinking about starting your own business, check out the franchise directory. Perhaps it will be an ideal solution for starting your own business?

Most popular franchises- 9 most popular and proven companies that you can join.

Franchising relatively recently came to the territory of Russia and Ukraine.

Some entrepreneurs are wary of this type of business, because sometimes the size of the initial investment can be impressive.

But you know, choosing most popular franchises you can quickly recoup your investment.

What is a franchise?

First of all, let's look at the concept of "franchise", as well as a few terms associated with it.

Franchise - an agreement that is concluded between the franchisor (owner of the trademark) and the franchisee (those who want to start cooperation) regarding the release of products or the provision of services under this brand.

Simply put, this is the use of a trademark on a leasehold basis.

In this type of cooperation, both parties benefit:

the franchisor expands the scope of its activities and makes a profit;
the franchisee saves time on training and promotion of the business, receives clear instructions on how, and finally, in his hands is a promoted brand that will immediately have its customers.

When an agreement is concluded between the parties, then the concepts appear in it, the meanings of which you need to know:

royalties are payments for the use of the brand and the assistance of the franchisor; can be presented as a percentage of the financial turnover, a percentage of the margin, a fixed payment;
lump sum is a one-time payment for joining the franchise network.

Most Popular Food Service Franchises

No. 1. subway

This company is a leader in the field of fast food restaurants.

It was founded in 1965.

Subway restaurants can be found in 112 countries of the world, and in Russia there are more than 670 of them, of which the first one opened in 2004.

The popular Subway franchise offers healthy fast food.

Here you can find fresh vegetables, meat, rolls, salads, desserts and drinks.

The restaurant's feature is sandwiches, the filling of which you can choose yourself, as well as bread, which is baked every 4 hours.

If you want to become a member of this particular network, you must know the cost of the franchise provided:

No. 2. McDonald's

If you ask someone: “What are the most popular franchises you know?”, then everyone will definitely name McDonald’s.

This is a fast food classic that every inhabitant of the planet knows about.

In terms of the number of restaurants in the world, the company ranks second after Subway.

An assortment of popular franchises in different countries may differ, but still it is represented by sandwiches, hamburgers, french fries, various drinks and desserts.

If we talk about cooperation with McDonald’s in Russia and Ukraine, then everything is complicated here.

Only recently the company began to work on conditions in these countries.

In Russia, the Rosinter company operates under a franchise.

Becoming a McDonald's franchisee takes a lot of work.

First of all, you need to have an impressive amount of money, then go through a long and intensive course of study related to technological process and marketing strategy.

Number 3. chocolate girl

Continuing the topic of the most popular franchises, special attention should be paid to domestic companies.

And a striking example is the network of coffee houses "Shokoladnitsa".

Most of the coffee houses, namely 200 "Shokoladnits", are located in Moscow and the Moscow region, but they also successfully operate in the regions of the country, as well as in Ukraine, Kazakhstan and Azerbaijan.

There are 85 outlets operating as a franchise.

The coffee house offers delicious grain coffee, elite tea, other drinks and delicious desserts.

Also "Shokoladnitsy" have a unique and cozy design.

The company pays much attention to staff training.

It works for this Training Center where classes are conducted by qualified trainers and psychologists.

The most popular retail franchises

No. 4. ZARA

This is a company that designs and manufactures women's, men's and children's clothing and accessories.

The stores of this network are represented in 70 countries of the world and their number exceeds a thousand.

They have been franchising since 1988 to expand the market.

It is noteworthy that there is no lump-sum fee for joining the network, but there is the so-called "franchise cost", which is essentially the same thing.

It is also worth noting that the condition for is the purchase of the first batch for a certain amount.

And for a fee, you can become a monopolist in your city or region.

So, to join the popular ZARA franchise, you will need to spend the following amounts of money:

Attachment type	Sum
Lump sum	missing
Investments	40 000 $
Franchise cost for opening a stationary store	30 000 $
Franchise cost for opening an online store	8 000 - 10 000 $
Purchase price of the first batch for a stationary store	30 000 $
Purchase price of the first batch for an online store	10 000 $
Employee training and opening of a turnkey boutique	10 000 $
Monopoly on the city	90 000 $
Monopoly on the region	150 000 $
Royalty	missing

No. 5. IKEA

it largest company originally from Sweden for the production and sale of furniture and household goods.

In Russia, this network is represented independently, and in Ukraine there are no stores of its kind at all.

IKEA has been on the market since 1943, and naturally, for such a long service life, it has earned the trust of customers.

Most of the stores are represented in Europe, in Russia it operates as its own retail chain.

The company provides a franchise where it is not able to enter the market itself.

Becoming a franchisee of a company is quite difficult.

In addition to major cash investments, which are determined individually, from those wishing to join you need to have at least 15 years of successful experience behind them.

No. 6. fix price

One of the most popular franchises in Russia is Fix Price, a food and non-food store chain.

The format of such trading is that a single fixed price is set for everything.

Here you can buy:

foodstuffs;
cosmetics;
bijouterie;
office;
household products;
household chemicals;
clothes.

Now there are more than 2,000 stores in Russia.

And in order to join them, in addition to financial obligations, you must have at your disposal a room with an area of 250 sq. m.

It is also worth noting that in locality, which will be this popular franchise, must have a minimum of 25,000 residents.

Most Popular Service Franchises

No. 7. Mail Boxes

This is an American company that is engaged in express delivery of correspondence and cargo.

To accomplish this, Mail Boxes, in turn, cooperates with 9 worldwide delivery services.

They can also print documents and promotional materials.

The network is represented in 70 countries, and on Russian market came out in 2010.

After opening its own branch, 94 franchise centers appeared.

In addition to finances, in order to become a franchisee, you must have sales experience.

Also, the future franchise participant must personally work in an open branch for the first year, and after confirmation, come to special training in Moscow.

No. 8. Genetic Test

The work of this company can be called a popular novelty on the market without any evidence.

GeneticTest is a unique technology that allows you to find out about a person's abilities by fingerprint.

The franchise began operating in 2012, and in 2013 it received the "Best Innovative Project" award.

Years of research have led to the creation of a software and hardware complex that determines through a fingerprint scanner what abilities a person has.

It helps in self-development and self-discovery.

The creators claim that the profit from one checked person is 1000 rubles, so you can recoup your investment in a popular franchise by serving 50 customers.

No. 9. INVITRO

This is an independent laboratory, which is the largest in the CIS.

She provides medical services in the form of more than 1000 types of surveys.

Since 2006, more than 300 franchise members have opened.

All classrooms are equipped with special equipment.

The collected analyzes are sent to Moscow for examinations.

Franchisees are required to select premises that will meet necessary requirements, as well as hire staff in the amount of 5 people.

Since this area is related to medicine, representatives of the main office check the franchisee several times a year.

To choose a franchise in the service industry, watch this video:

On this most popular franchises do not end.

This was just a short list.

But remember that even the most hyped franchise does not guarantee 100% success.

Much depends on the franchisee himself, on his business skills, ability to manage and adhere to all the rules.

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