The idea of franchising is simple, like everything ingenious. An experienced entrepreneur (franchisor) transfers the right to his trademark (franchise) to a novice businessman (franchisee). To use the brand, the franchisee makes an initial (lump sum) contribution, and subsequently pays a monthly percentage of profit or turnover - royalties.
In this way, the franchisor receives additional income and expands its business. And the franchisee saves on advertising and can count on support on all issues, from renting premises to staff training.
The main thing is that the businessman uses a ready-made working idea. This significantly speeds up the launch of your own business and increases the chances of success.
Like any business, buying a franchise comes with risks. And one of them is a misfire with the scope of activity. Choose a franchise with both your mind and your heart. On the one hand, you should be interested in what you are going to do. On the other hand, you need to understand the issue at least a little. It is equally important that your offer is relevant to the city where you live.
Fortunately, the range of turnkey businesses is quite wide and finding a profitable business to suit your taste is not so difficult. Below we offer popular models that require relatively small investments and can pay for themselves in a few months.
Mobile dry cleaning of upholstered furniture and carpets
- Starting investment: from 200,000 rubles.
- Average payback period: 3–4 months.
Mobile dry cleaning services are always in demand. In stable times - because income allows you not to clean the carpets yourself. In times of crisis - due to lack of money for new furniture and replacement of carpeting. It's cheaper to put in order what you have.
Dry cleaners' clients are not only private individuals, but also offices, restaurants, shopping centers, hotels and hostels. Competition in this market is not that high yet.
The markup on the cost of the service can reach up to 500%.
The franchisor teaches you cleaning technologies, introduces you to legal and accounting intricacies, and sets up online advertising. Initial investments include the purchase of equipment and chemicals, as well as the rental of premises. Then the main expenses will go to employee salaries (usually, after a couple of months, it becomes necessary to hire one or two assistants) and brand promotion.
Glass Doctor
Foreign franchises surprise with their diversity. This paragraph deals with the constant monitoring of glass coverings. A person is constantly surrounded by glass, so the company decided to take them as its main strategy. Everyone knows that they quickly lose their original appearance, which means they often need reconstruction. Glass Doctor performs the following work:
- home glass repair;
- car service - repair or replacement;
- glass lamination;
- installation of display cases.
This is only a small part of all services provided. This small business franchise will cost $50,000, and total costs will be $100,000 - $200,000.
Travel agency
- Starting investment: from 300,000 rubles.
- Average payback period: from 11 months.
There are still significantly more people who prefer to buy a ready-made tour than independent travelers. Therefore, travel agencies are still able to generate stable income. But you need to realize that competition in the market is very high.
Simply opening a franchise and receiving passive income will not work: you will have to actively fight for customers.
However, the franchisor will most likely help you with your first customers. Also, the initial payment will cover training, assistance in personnel selection, legal support, purchase of furniture, rent and advertising decoration of the office. You will have access to the company's software (online booking system, tour database, website) and a single call center.
Among the minuses, it is worth noting the dependence of profits on the season and the state of the economy in the country. As a rule, travel agency services are in more stable demand in large cities.
Top 3 in catering
Foodservice franchises are leading the franchising market.
“33 Penguins” is the largest in Russia
The image of a penguin brings a smile, which is why clients perceive our company positively.
Director of the company, Elena Rybina
The company is a manufacturer of natural ice cream and desserts. At the beginning of 2020, “33 Penguins” has 1,724 franchise productions and 42 of its own. The company released its first franchise in 2006.
Penguins have a bright, positive brand that gives a positive attitude not only to customers, but also to partners and employees of the network.
The company has developed 6 outlet formats for its franchisees:
- Cafe without seats;
- Cafe with chairs and tables 30 sq.m;
- Mobile cafe;
- Mini cafe;
- Seasonal points;
- Delivery of goods to establishments.
About caring for franchisees:
- The head office delivers the product and furniture for the opening;
- The franchisee receives instructions for launch;
- Most partners are satisfied that the company provides support at all stages of opening.
About the requirements:
- Before concluding a franchise agreement, an entrepreneur must find premises to rent and sign an agreement;
- There is a sales plan. For failure to comply, they may find another person in this territory.
About money
Lump sum payment: 200-370 thousand; Royalty: no; Investments: 700 thousand – 10 million; Payback: 6-12 months; Revenue in summer: from 340 thousand.
Accurate calculations can be made only after choosing the appropriate option and number of points.
Attractiveness for franchisees. The conclusion is that this is a reliable company. You can spend up to 1 million on launch. rubles, there is no need to pay royalties. Judging by the reviews, customers and partners are loyal to such a vibrant brand.
The main disadvantage is that this business is seasonal. In winter, you can leave points and cafes, but the demand for ice cream will be much lower. It’s easy to start a business, but the return on investment is slow. The company recommends buying several points at once, then you will be able to recoup your investment faster.
“Burger club” is the most profitable in Russia
The main difficulty that franchisees will have to face is the lack of good commercial space.
Ksenia Denderya from Burger Club.
As the name suggests, “Burger club” is a chain of burger joints. The company positions itself as a fast food restaurant. Her burgers are prepared according to original recipes.
This company has a franchise network of 218 production facilities, and its own network of 15. The first franchise appeared in 2010, that is, in 2020 it will most likely have a grand anniversary.
The company offers its partners to open in several options:
- food courts 45-70 sq m;
- cafe with chairs and tables 70-120 sq m;
- stationary objects 90-150 sq. m.
About caring for franchisees.
- Online school;
- Certification of cashiers;
- Marketing support;
- Staff motivation;
- Federal discounts.
About money.
Lump sum fee: no; Royalty: 2.5%; Investments: 4-5 million; Payback: from 14 months; Revenue: 350,000 rub.
Attractiveness for franchisees.
The franchise made it to the top of Forbes magazine and our article due to its low royalty rate and the absence of a lump sum fee. Most customers find Burger Club burgers very tasty. Among the disadvantages, it is worth noting that the size of the investment and the payback period often become a barrier for beginning entrepreneurs.
Subway is the most successful in the world
Previously, Mc Donalds was the undisputed leader in the fast food industry. Now Subway is ahead of not only its direct competitor in the Forbes ranking, but also all other franchising areas.
Forbes magazine editors
Subway Company
The Subway fast food restaurant chain originated in the United States in 1974 and now has franchised locations all over the world.
It is important for future franchisees to understand that becoming a partner of this network is not as simple as opening a franchise of a Russian company. The company's management prefers to cooperate only with those who already have experience in business. After the franchisee enters into an agreement, he begins training. At the end of the training, everyone must pass an exam. Otherwise, he will not be able to open his point.
About caring for franchisees.
- Access to the IT system;
- Design project;
- Education system;
- The franchisee sets his own prices.
About money.
Investments: 4-6 million; Revenue – 1-2 million; Lump sum payment: 450 thousand; Royalty: 8%; Payback: from 24 months;
Attractiveness for franchisees.
It makes sense to consider a Subway franchise only for experienced entrepreneurs. In Russia it is not difficult to become their partner. For example, in the USA, a franchise will be sold only to those who can manage the business themselves.
The network does not provide you with a business plan or assist you with financing. The owner of the chain believes that the most important thing is to choose a suitable location. The new franchisee is not assigned a specific territory; he can open throughout the country.
The Subway franchise is that rare case of a “free” franchise when you can set your own prices for goods.
Street food point
- Starting investment: from 350,000 rubles.
- Average payback period: from 10 months.
If you have not yet grown into a full-fledged restaurant business, but want to try it now, start by selling burgers, hot dogs, ice cream, sweets and takeaway drinks. The main thing here is to wisely choose a place where there will be a stable flow of customers. In this, as in everything else, the franchisor will help you.
When you buy a coffee shop, burger or sandwich shop franchise, you get help in finding a location, support on social networks, and access to an authorized business system. You and your employee (who will most likely be alone at the beginning) will be taught how to cook, sell food and market yourself.
At the start, you need to invest in equipment, branded packaging, products and rental. You may have to change your location more than once while things get going.
Basic advice: rent from a shopping center or other venue for a maximum of a month to maintain mobility.
Franchisors either provide a list of verified product suppliers (and you purchase your own), or replenish ingredients centrally. In any case, you must strictly follow the instructions. You will not be able to add anything to the menu on your own. And this is the main disadvantage: many businessmen quickly become bored with the monotony.
Firehouse Subs – more foreign franchises
A fast food chain that has gained particular popularity in America. The establishments have their own special stylistic look, a simple but satisfying menu.
The main feature is the design in the style of a security service. Not only the color design matches the theme, but also the presence of appropriate accessories - various memorabilia of real firefighters. The menu has its own signature dishes, the likes of which you will not find anywhere else.
However, once you get excited about an idea, you should be prepared for serious financial investments. The rights themselves will cost $20,000. But all other costs can reach $1,000,000.
A wide variety of foreign ideas allows you to choose the most profitable option for our country. It is worth understanding that there is always a risk. Even the most profitable business abroad may turn out to be unprofitable in our country. Population size, income, and interests are important. Only after carefully diagnosing the target audience is it worth getting down to business. After all, while one is afraid, the other is earning his first million.
Healthy food delivery
- Starting investment: from 450,000 rubles.
- Average payback period: from 4 months.
An excellent business for those who dream of making people around them healthier. Moreover, it is now in trend.
After paying a lump sum fee, you are provided with technological maps for preparing dishes, help with advertising, organizing production, searching and training personnel. The number of employees, as a rule, starts from four people, including a cook.
The franchisor updates the menu weekly or assigns a nutritionist to you who creates individual nutrition programs.
You should focus on marketing, experimenting with different social networks.
According to reviews from franchisees themselves, Instagram gives the best results in promoting healthy eating.
Franchise payment methods
The basic operating principle of a franchise scheme in business is that the franchisee receives privileges for a certain fee. Payment methods are royalty and lump sum.
Lump sum payment
Lump sum fee – the price of the franchise, the initial amount of payment for it. It is not eligible for future refunds. The contribution amounts vary; the more popular the brand, the higher the price of purchasing a franchise.
Royalty
The meaning of the word royalty is regular payments. According to the schedule specified in the contract, they can be paid once a month or quarter. The franchisee pays royalties throughout the entire period of the agreement.
Essentially, these are membership fees, which can take the form of a percentage of sales (profit) or a fixed amount.
Children's Continuing Education Center
- Starting investment: from 400,000 rubles.
- Average payback period: from 6 months.
That rare case when a noble cause can bring good income. Parents in Russia are ready to invest in children from 20 to 50% of the family budget. A considerable part of this money goes to educational services.
To open a programming school or children's language courses, you do not need to be a programmer or philologist yourself. Franchisors help find teachers and often interview them themselves.
You also receive a business plan, all necessary licenses, programs and methodology, and a website on a common domain.
It is convenient to combine the management of an educational center with raising your own children, who can study here. Therefore, such a franchise, as a rule, is especially popular with enterprising mothers of preschoolers and students.
Franchise "9 Nights"
The offer is presented on the market by the home hotel chain of the same name. The apartments provided to clients are comfortable and comply with all current standards. The company's management pays great attention to new business methods and innovative technologies. When selecting partners for cooperation in this inexpensive franchise, preference is given to decent and ambitious businessmen.
The minimum period for opening a franchise business is 21 days. The volume of investments required to participate in the project starts from 185 thousand rubles. The maximum limit - depending on the choice of cooperation option - is 350 thousand rubles. Royalty amounts RUB 1,800. Starting income level from activities under the “Nine Nights” franchise: 2,500,000 rubles. Territory requirements: the entrepreneur must own five real estate properties, each with an area of 28 sq. m. meters. The minimum payback period for investments in this inexpensive franchise is six months. The monthly turnover is represented by the amount of 239,700 rubles.
Fixed price hair salon
- Starting investment: from 600,000 rubles.
- Average payback period: from 6 months.
The business is built on budget hairdressing services at a unified cost.
The haircut process takes no more than 25 minutes, and the price is 200–250 rubles.
The franchisor provides advertising materials, conducts staff training, and assists in the selection and design of premises - this can be either a salon with a separate entrance from the street or a site in a large shopping center. You will be given branded workwear, a list of necessary equipment, and supplier contacts. Sometimes the franchisor uses a certain line of cosmetics, the quality of which he can vouch for. After launch, the main efforts should be directed to advertising.
Structure of the franchising market in Germany
Among the total mass of franchising enterprises in Germany, companies operating in the service sector predominate. According to DFV estimates, their share is 40%. In second place is the trade sector with a share of 24%. The same amount falls on the HoReCa segment (according to the DFV classification, “catering, tourism and leisure”).
Finally, 12% of the German franchise market consists of construction companies, small handicrafts and repair shops. As experts note, these areas are actively growing against the backdrop of a construction boom in the country and the desire of small companies to expand through franchising.
More than half (55%) of franchise networks surveyed by DFV said they are in the process of expanding. In 2020, German franchisors expect to find an average of 12 new franchise partners.
Instagram store of branded clothing and shoes
- Starting investment: from 45,000 rubles.
- Average payback period: 1–2 months.
The advantage is that this business does not require an office or any other premises. Enough stable internet. They create a separate account for you, set up targeted advertising, and provide you with scripts (ready-made scripts) for communicating with clients.
Relatively small investments usually pay off by the end of the second month, and for some sales masters, even in the first two weeks.
Before you open a store, find out if there are competitors in your city and talk to the franchisor about how to beat them. These could be reduced prices, an advantage in delivery speed, promotions, competitions, special offers. It is important to make sure that the franchisor sells a quality product that you like.
An Instagram store is good as a source of additional income: if you don’t dream of sky-high incomes, it’s enough to devote 2-3 hours a day to communicating with clients.
