MTS - features, conditions for purchasing a franchise, reviews

MTS franchise - features, conditions and reviews

MTS communication stores offer customers services for connecting to the network, selling SIM cards, phones, accessories, modems and after-sales service. Branded outlets can also transfer subscription fees for Internet and television, repay loans and issue insurance policies. In addition, the company sells franchises and ready-made commercial solutions that allow you to open your own profitable business.

History of development

was formed in 1993 in the form of a closed joint stock company. The first shareholders were such large companies as Siemens, DeTeMobil and MGTS. In 1996, two owners remained in the company: DeTeMobil and AFK Sistema. As a result of the merger of RTC and MTS in 2000, a new one was formed. As it developed, the organization's shares began to be listed on the New York Stock Exchange. MTS operates throughout Russia, Ukraine and Belarus.

Today it is the largest cellular operator in Eastern and Central Europe. The active development of cooperation with partners on franchising terms began in 2009. As a result, the network of this mobile retail has grown significantly. Today, branded salons can be seen everywhere. In rating lists it occupies the position of the most expensive global brand. The organization's strategy is to anticipate the situation and make timely decisions.

Franchise Features

An entrepreneur can open an MTS franchise in the CIS and Russia. It is worth knowing that only a branded retail chain operates in Moscow. Potential partners need to be aware that they do not have the right to install telecommunications equipment and provide mobile communications.

The entrepreneur receives his main income through special prices, which are calculated according to the business plan. The pricing policy directly depends on the priority of the selected region and salon format.

How to get a franchise?

Partners can receive a ready-made solution for business development under a well-known brand without additional financial costs. This format of cooperation has its advantages for franchisees. If you have sufficient financial resources and retail space, it is possible to enter into a partnership with the company. Applicants can independently apply for an MTS franchise via the Internet. After this, basic data and information about the format of the outlet, location are taken into account, the cost part and the payback period of the project are calculated.

The cost of an MTS franchise may vary depending on the area of the future mobile phone store. On average, a partner will need from 760 thousand to 1.2 million rubles to develop a franchise. The minimum square footage of retail space is 5 square meters. m. In this case, the selected premises should be located in a shopping center or stand separately in the form of a pavilion. An entrepreneur can also choose a mini-office or “island” format.

Partners' opinion

If the franchisee does not have business experience in this field of activity, the franchisor will provide information and marketing support and appropriate training at the stage of opening the salon. Also, the franchisor can support the partner in terms of information throughout the entire period of work. If the area is included in the list of priority cities for network development, then retail equipment will be provided free of charge.

Many reviews from partners note that the MTS franchise is one of the best in the country. Such a business is competently organized and well planned, and the franchisee receives the necessary support from the company in a timely manner. Also, reviews of the MTS franchise note a quick payback period and stable terms of cooperation. enjoys credibility among clients, so partners regularly receive high and stable profits.

Benefits of cooperation

Future partners should take into account the many pros and cons of cooperation in the franchising format. has gained a reputation as a reliable cellular service provider, so the brand will help partners at the start of business development. The logo will attract customers loyal to the brand. A competent business plan, which is calculated individually, will allow you to guide your partners in terms of profit margins and the payback period of the project.

The franchisor offers effective and ready-made marketing schemes, advertising and corporate image support. The MTS franchise has conditions that are loyal to the franchisee, so doing business is quite simple. Potential partners can only take a responsible approach to the implementation of the project itself and take into account possible risks and recommendations.

Product Features

offers regular staff training, exchange of experience between partners from different regions, participation in motivational and corporate programs. This format of cooperation does not require mandatory payments or an initial contribution to the franchisor.

Many reviews say that the MTS franchise allows you to quickly start your own business and achieve business success. However, when opening a retail outlet, it is necessary to take into account weaknesses. This will avoid moral and financial costs. In big cities it is difficult to find places with high traffic. You should not choose places that are located next to competitors. It is better to buy space in a shopping center or a business center under construction in advance. It is important to approach the issue of personnel selection responsibly.

People need to really understand mobile devices and the features of phones. The optimal solution would be to find people with experience in this field. You can also train beginners who have a craving for communicating with people and a love for technical devices.

Entrepreneurs should not doubt the feasibility of operating an MTS franchise, as this can become an obstacle to development. By concluding an agreement with a large company, the franchisee has the opportunity to acquire a profitable and growing business. At the same time, all risks for partners are minimized.

The presented article contains the necessary information about the cost and conditions of an MTS franchise, which will allow you to create your own business.

Independently or through a franchise?

In the early 2000s, during a period of growing rush demand for mobile phones and connections to mobile networks, the relevance of opening an independent salon was quite high.

Today, the ratio of the number of mobile phone shops to the population in Russia significantly exceeds European indicators.

So, in March 2020, the 2GIS company conducted a study. The results are as follows: in cities with a population of over a million, there are on average 27 points of sale of mobile phones per 100 thousand inhabitants. The largest number of salons are registered in Perm and Omsk. Moscow is only in 13th place among the largest cities in Russia, St. Petersburg is in 8th. In absolute numbers, these are 3,400 points in Moscow and more than 1,500 in St. Petersburg. For comparison, in Italy there are 31 salons per 1 million people, in Germany – 52, in the UK – 37.

Major players in the cellular retail market and telecom operators have “accustomed” the average consumer to their own brands, loyal prices, and service.
To buy a mobile phone, people go to Svyaznoy or the operator’s company store; to pay for communication services, go to Euroset or pay via the Internet. The number of people preferring online stores to stationary points of sale is growing. A single retailer needs to try very hard to survive in such fierce competition. Table 1. Number of sales points of major players in the cellular retail market and telecom operators in Russia

Company	Number of own points	Number of outlets opened under franchise	Total
MTS	4 087	1 751	5 838
Megaphone	More than 2,000	About 2,000	About 4,000
VimpelCom (Beeline)	1 500	About 2,000	About 3,500
Tele 2	—	3 300	3 300
Yota	100	220	320
Euroset	About 4,000	—	About 4,000
Svyaznoy	About 2,700	—	About 2,700

Source: Vedomosti newspaper

In addition, when purchasing mobile gadgets on your own, it is difficult to maintain competitive prices compared to major industry players. This is due to the fact that when concluding agency agreements when working under a franchise or as a dealer of a mobile operator, as a rule, significant discounts are made, installments are provided, part of the initial and/or monthly costs and other beneficial additions are compensated. Why it is profitable to open a business in this area through a franchise becomes clear after reading their conditions.

Conditions and cost of MTS franchise

Today, in conditions of fierce competition, starting your own business is quite difficult. It requires considerable investment and good knowledge of at least the basics of marketing, management and economics. And still the chances of going broke remain high. After all, without good experience in doing business, it is very difficult to cope with the obstacles that arise on the path of a novice businessman.

All of these troubles, or at least most of them, can be avoided by purchasing a franchise from a reputable company. This will give you priority at the beginning of your work, because you will immediately get clients who trust and use the company’s services, which means you will have to spend less money on advertising. Various issues related to organizing work, recruiting personnel, purchasing goods and much more will be decided by the franchisor for you when purchasing a franchise.

Business in the field of telecommunications, in today's world, is fast-growing and quite promising. To start such a business from scratch requires exorbitant capital investments, which only a few can do. But some time ago, an opportunity arose to work as a franchise with such a monster in the field of mobile communications as MTS.

Information about the MTS company

The year of foundation of the company is 1993. There is no need to introduce Mobile TeleSystems (MTS), today this company is familiar to almost every resident of Russia and the CIS countries. This successful and fast-growing company became the first in Russia to be included in the ranking of the most expensive brands in 2008. Today, this is one of the two largest mobile communication networks in Russia.

Today, MTS has a network of more than 4,200 sales points throughout our country. Some of them operate as franchises. You too can join their ranks. The company sells franchises in the CIS countries and Russia.

Franchise price and requirements for the franchisor

The initial investment for operating a franchise ranges from 750 thousand rubles to 1.250 million rubles. The cost of an MTS franchise depends on the size of the future location and the priority of development of a particular region. This money goes towards opening your outlet, because the franchise has no cost as such. In addition, there are no:

monthly fees (royalties);
an initial fee;
marketing deductions.

In some cases, if development in your region is a priority for the company, you will also be provided with commercial equipment free of charge if the term of your contract is at least two years.

The terms of the MTS franchise are quite loyal. The point can be located in a shopping center or in a separate building. It could even be a “mini-office” or island format. Actually, the generalized requirements look like this:

area from 5 square meters;
availability of capital (raised or own);
design of the point in a corporate style.

The lack of experience of a future partner is also not a problem - the company will support, tell and teach. More detailed conditions and prices can be found on the official website of MTS. By filling out the form, you will have the opportunity to communicate with a company representative and clarify in more detail the cost for your city and the area of your premises.

What does the franchisee get?

The MTS franchise provides the following advantages to its partners:

excellent conditions for the supply of phones, through contracts directly with manufacturers;
Most of the products are purchased by you at large discounts;
employee training;
the opportunity to get a “turnkey business” with full or partial compensation of investments;
any support from MTS for doing business;
partial compensation of opening costs is possible;
provision of a ready-made business plan;
free uniform for staff;
Promotional Products.

In addition, you will have the opportunity to work under a brand known throughout the world. You don't have to spend huge amounts of money on advertising. All this has already been done by the franchisor. All you have to do is develop your successful business.

Advantages and disadvantages

The undoubted advantages of this franchise include the fast payback period stated by the franchisor - from 6 months. The recognition of the MTS brand allows you not to worry about advertising and brand promotion; the franchisor takes care of everything. The absence of a lump sum fee, royalties and various other deductions is also a big plus. Also, the minimum requirements for a future partner and premises for locating a retail outlet cannot but rejoice. You are also guaranteed comprehensive support from a large company.

At first glance, such a franchise has no flaws. But not everything is so rosy. Reviews of the MTS franchise indicate that there are still shortcomings.

Firstly, goods such as mobile phones, cases and other small items are very easy for criminal attacks. Therefore, security costs are required and can reach significant amounts. This, naturally, can increase the payback period, sometimes significantly.

Secondly, staff, staff and more staff. Competition is high and in order to comply with company standards, it is necessary to select either expensive and qualified personnel, or train people from scratch. In addition, it is important to motivate employees well in order to increase sales of the outlet.

Thirdly, premises for a retail outlet. It is extremely important to place it in a place with a lot of traffic from potential customers. Here everyone gets out as best they can. Someone buys a place in a shopping center that is still under construction, while others still find a place to rent in places with high traffic.

In general, as in any business, there are advantages and disadvantages. The direction itself is quite promising and fast-growing, and the brand is mega-famous. Quite a profitable solution for starting a business.

MTS franchise - features

The main direction of the MTS franchise business is the development of branded communication stores, where new clients are connected to the mobile operator’s network and related services are provided:

advise the company's clients;
sell, restore, replace SIM cards;
sell mobile devices (including branded ones), accessories;
offer service for telephones, modems, etc.;
accept money transfers, payments for the use of mobile communications, the Internet, cable television;
draw up insurance and loan agreements.

The franchisee receives income from the difference between the purchase price of goods and the price of their sale.

It should be noted that the franchise does not provide the right to install telecommunications equipment and provide communication services.

To become an MTS partner, you need to fill out an online application on the company’s official website

MTS - features, conditions for purchasing a franchise, reviews

Year	2009
Website	https://www.mts.ru
Total stores	4500
Their	2000
By franchise	2500
Min. attachments, a	760 000
Payback, months	6
Income/month, a	130 000
Payments to the owner, a	No

O is an international network of mobile communication stores. All cities of Russia and CIS countries are considered distribution regions.

The company was founded in 1993 and only began franchising activities in 2009. Today there are about 2,000 own enterprises and 2,500 franchisees.

About the franchise

The starting investment is 760,000-1,200,000 rubles.
Business payback in 6 months.
There is no lump sum fee, advertising fees or royalties.
The required room area is 5-30 sq.m.
Location in a shopping center on the first floor, with good traffic.
The minimum number of staff is 2 people.
Income per month is 130,000 rubles.

Benefits of cooperation

The international network of mobile communication stores "MTS" provides a number of privileges to its future franchisees. These include:

full marketing and advertising support;
professional training of personnel;
relatively quick business payback period;
provision of goods at competitive prices;
the opportunity to open a business without making payments to the franchisor;
consultations during the search for a suitable location for a retail outlet;
receiving a personal consultant before the opening of the salon.

MTS franchise reviews

There are various responses about cooperation with the company, both positive and negative. The reason for this, according to potential partners, is the large number of already existing mobile communication stores.

Many future franchisees are interested in opening such a retail outlet. The company's fame and excellent partnership conditions are considered the main advantages for purchasing a franchise.

Dmitry from Novosibirsk, a franchisee since 2020, speaks positively about cooperation with. For him, this is a truly profitable business and the payback period does not exceed 6 months. An important point is the enormous support of specialists from the company’s head office.

At the same time, Svetlana from Ulyanovsk, who bought the franchise in 2016, speaks negatively about the company and employees. For her, the cooperation had unpleasant consequences, namely the lack of profit and support from the franchisor.

In general, reviews about the company are significant. Some franchisees are happy with the cooperation, others believe that this is an unprofitable business and it depends entirely on the traffic of the outlet.

Advantages and disadvantages

Working with MTS as a franchise attracts both young, aspiring businessmen and entrepreneurship sharks, as it has a number of advantages:

working under a well-known brand does not require additional advertising - clients recognize MTS stores by sight;
The company’s specialists draw up a plan for each point individually, in which all the details are calculated - this allows you to plan both the initial costs and the expected profit;
advertising, drawing up and implementing marketing plans is carried out by the company itself - the entrepreneur does not have to pay for this;
personnel are trained at trainings organized by MTS;
There is no need to pay monthly interest for work under the brand;
You won’t need huge investments when starting a business.

The disadvantages of cooperation are:

High competition. The profitability of an enterprise directly depends on its location, and finding space in a busy place where there is a minimum number or no competitors is quite difficult.
The optimal solution is to rent or buy retail space in a shopping center that is still under construction - this way you can save on its cost and get a convenient place to work.
Employees . The most important requirement for employees is their professionalism. In addition, they must be able to communicate with different types of people, understand all the gadgets and services presented in the salon, be kind and friendly, tactful and active. Selecting a truly professional team for your cellular communication salon is the highest aerobatics in business.

MTS franchise, reviews

#51 klon2009

Users
Posts: 2

Dear Ladies and Gentlemen Representatives of MTS, instead of churning out bots and “clones” and creating the appearance of “showing interest,” you would be better off working with existing dealers. And do you yourself need this, excuse me, hassle with franchisees who have no experience in cellular retail?

This is not an MTS stamp, this is my standard reg on new forums, the interest arose due to the equation of beer with alcohol, so after the new year I need to change the type of activity, I am considering all options, including MTS. So I don’t have a great desire to work in a franchise, others I can't find any options yet. So, as for the dissatisfaction with this franchise, I would like to consider the pros and cons point by point. I would be glad to receive any feedback, but a specific one with a description.

#52 mkablin

Users
Posts: 3

Good day to all. I am answering as an employee of the MTS franchising department, RTK company. We answer immediately if you sent a request using the established questionnaire, and not as often happens, the letter begins and ends with the phrase “I want to be a partner.” We also have a development plan for Russia. Moscow only has its own retail, not for franchising. Leave your contacts and I will immediately send you a commercial offer. Sincerely, Shichkov Alexey

#53 hirsh

Users
Posts: 3

#54 MTSfranshiza

Users
Posts: 18

#55 mkablin

Users
Posts: 3

#56 MTSfranshiza

Users
Posts: 18

#57 Omich1984

Users
Posts: 7

This is not an MTS stamp, this is my standard reg on new forums, the interest arose due to the equation of beer with alcohol, so after the new year I need to change the type of activity, I am considering all options, including MTS. So I don’t have a great desire to work in a franchise, others I can't find any options yet. So, as for the dissatisfaction with this franchise, I would like to consider the pros and cons point by point. I would be glad to receive any feedback, but a specific one with a description.

Good day. I apologize for not answering for so long - cellular operators take up a lot of personal and work time) As for the MTS franchise, I can’t say anything bad or anything good - I didn’t work on it. We work with MTS in the multi-brand channel, i.e. We sell their Services in parallel with other operators. And as a “franchise” we work with other operators. I am sure that no matter what operator you work with, the conditions for opening Branded Salons are approximately the same.

Among the advantages I can note:

1) Lack of large investments in advertising (in large cities it is simply not needed because there is a federal one, but in small regional centers it costs pennies (we recently launched advertising on the local TV channel of one of the regional centers - just don’t laugh - 80(.) rubles (not thousands. )))) per day of scrolling in prime time ))) 2) The market is clearly divided. Therefore, you have your share of sales in any case. The operators themselves are fighting to get a share with different tariffs, etc. 3) Full supply of all kinds of advertising materials from the operator, and this is not unimportant. 4) If planned indicators are met, partial or full coverage of rental costs. 5) In some cases, partial coverage of the costs of producing outdoor advertising. 6) If this is a regional center, then granting a monopoly on the opening of a Branded Salon(s). 7) An interesting reward system for selling Services.

Now the disadvantages (although you don’t have to classify them as such - after all, this is a “franchise” and working under someone else’s brand you need to be mentally prepared for them):

1) Strict frameworks and procedures on the part of the Operating Company (photo reports, merchandising (by the way, I consider it justified), etc.) 2) Operators are only interested in selling Services. Cell phones and accessories for them are on their side, and this is more than 60% of revenue. Therefore, if you don’t have your own experience or someone who can tell you how to do it right, there will be a lot of mistakes, which naturally affect your budget. 3) Penalty system. This is generally a sore subject. Because of the stupidity/malicious intent/ignorance/carelessness of the seller, you can end up with such money that it doesn’t seem like much. 4) Periodically changing terms of the “franchise”. 5) Each Operator has a retailer subsidiary, which at some point can stand nearby and “bite off” your sales. And, believe me, their financial capabilities are greater than yours.

Well, that seems to be all that came to mind offhand.

In general, a very interesting business. It’s a pity that for local dealers it is already on its way out. Those. Now is not the best time to enter it.

History of development

MTS - features, conditions for purchasing a franchise, reviews

Down payment -No Investments - from 760,000 to 1,200,000 rubles Payback - from six months Address - Moscow, st.
Petrovsky Boulevard, 12, building 3 (Click to view) Website – https://www.mts.ru MTS on social media. networks Are you an official representative of this franchise? Register

pros

Well-known and recognizable brand.
No lump sum fee, royalties or marketing fees.
Personnel training and motivation programs.
Possibility of cost compensation at the initial stage of cooperation.
Receive comprehensive support on all issues related to running a business.
Providing proven and proven business schemes.
Wide and popular range of products.
Software is provided to control the operation of the store.
Marketing support provided.

Minuses

Strong dependence on the location of the salon - for the business to be profitable, the store must be located in an area with high traffic.
The need to independently select employees.
The need to provide and pay for 24-hour store security.

Leave feedback

Reviews about MTS

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I believe that here you just need to talk with the owners or sellers of the salons - they are certainly not interested in selling you a franchise, so they can easily tell you how things really are with them. I think a lot depends on the trafficability of the place and the skills of the sales consultants.

If I had known that such results would come, I definitely would not have invested. The MTS franchise is low-profit, but it can pay off indefinitely. What can we say about the company’s management, with whom it is very difficult to find a common language. If you want to make good money, then it’s better to invest in something “of your own,” and certainly not in this company, where the main business is built on selling franchises. They earn good money at the head office, and you, in fact, will be a hired director with a pittance salary.

I consider the MTS franchise to be one of the best in Russia, and here's why. Firstly, the business is clearly planned and competently organized - the franchisee receives full support and all marketing materials. Secondly, the payback period is quite fast, so the investment is fully justified. Of course, the brand itself is very popular, and the products can be called in demand. Any MTS salon clearly attracts more customers than other similar companies. Of course, the attractiveness of tariffs and the affordability of prices for phones influences. It’s difficult to surprise today’s buyer in this area with anything, but MTS can really do it. Actually, the company’s authority is at a high level, so the name alone is worth good money here. By opening a salon under this franchise, you can receive consistently high profits.

Partners' opinion

Read more: Where is it cheaper to insure a car under MTPL in 2019?

MTS franchise

An initial fee	No
Investments	760,000 – 1,200,000 rub.
Payback period	12 months

Year of foundation 1993 Turnover per month upon request Year of franchise launch 2009 Royaltynet Initial payment no Franchises sold over 5,500

To open a franchise business, it is important to choose a reliable seller. The franchise must not only be purchased on good terms, but also generate a stable income. The largest mobile operator MTS offers partners to buy a franchise and open their own business.

Conditions and cost of MTS franchise

Basic requirements of MTS company

MTS has two main requirements for a future partner:

availability of finance (own or borrowed);
availability of area (from 5 sq. m).

The franchisor offers the following conditions when working under a franchise:

no down payment;
no monthly payments (royalties);
no marketing fees;
free provision of equipment to partners from priority cities (if a contract is concluded for a period of more than 2 years).

MTS offers favorable conditions for purchasing a franchise. But, like any product, it has its pros and cons.

MTS franchise: cost for entrepreneurs

The cost of an MTS franchise currently varies from 760,000 to 1,200,000 rubles. The final purchase price depends on several factors :

store area;
salon location;
outlet format;
region of presentation and others.

To purchase a franchise, the buyer fills out a special form on the company’s website. Having received the completed questionnaire, the franchisor makes the appropriate calculations of costs, profits and payback of the partnership with a specific applicant. After determining the necessary parameters, the company sets the final cost of the franchise for a specific partner.

Pros and cons of this type of business

Advantages of working under an MTS franchise

A recognizable red and white brand will give your business a good start. MTS is known not only throughout the Russian Federation, they also operate in the CIS countries.
The franchisor offers a specific business plan for the franchise with specified payback periods. This allows you to calculate the monthly profit and overall profitability of the enterprise.
MTS offers its partners discounts on products up to 80% and special prices for services.
The absence of a down payment, royalties and marketing payments significantly reduces business costs.
No advertising costs. The company independently advertises its brand, products and services on television, in the media and on the Internet.
MTS offers free staff training for its partners. The company has developed special courses, there is the opportunity to undergo training and attend corporate events.
To get started, you need a small investment - the area of a retail outlet can be only 5 square meters. m. Afterwards, the entrepreneur can expand the chain of franchise stores.
Wide range of services:

transfers of subscription fees for cellular communications, TV, Internet,
sale of phones and modems, SIM cards, accessories,
connection of mobile communication services,
registration of insurance policies,
repayment of loans.

Advantages and disadvantages of working under an MTS franchise.

Disadvantages of MTS franchise

The retail outlet should be located in an area with good traffic. In large cities, competition in the cellular market is very high, and such a place is not easy to find. In this case, it is more profitable to purchase premises in shopping centers under construction.
Finding helpful and qualified staff for a mobile phone store is not easy. It is better to train employees yourself or hire specialists for a higher salary.
Mobile phones are a hot commodity in the criminal sphere. To protect your business and employees, you will have to spend money on providing 24-hour security for your retail facility. Nothing is said about this in the terms and conditions of purchasing a franchise.

MTS franchise: reviews from Russian businessmen

Entrepreneurs working with MTS on a franchise basis note the following points:

a ready-made brand plays a big positive role at the initial stage of business;
MTS advertising does not require costs, while the company uses the most expensive resources for this: television, media, banners;
the franchisor pays great attention to its color scheme: a slight deviation and everything will have to be redone;
to open new outlets, you need to obtain approval from the central office, which greatly hinders business development - rental spaces are often managed to be occupied by other entrepreneurs;
the need to attract expensive employees and ensure the safety of retail locations extends the payback period of the business, in contrast to what was stated by MTS.

Advantages and disadvantages

To summarize, the advantages of developing an MTS franchise project include:

successful business scheme;
the formed image and brand does not need additional advertising;
opportunity to start for entrepreneurs without experience in telecommunications retail;
low investments at the start;
savings on business promotion;
choice of enterprise format;
franchisor assistance;
studying programs.

The disadvantages cannot be ignored:

high competition both between mobile operators and within the company;
high competition both between mobile operators and within the company;
problems with choosing a room - more or less suitable places may already be occupied.

MTS - features, conditions for purchasing a franchise, reviews

Year	2009
Website	https://www.mts.ru
Total stores	4500
Their	2000
By franchise	2500
Min. attachments, a	760 000
Payback, months	6
Income/month, a	130 000
Payments to the owner, a	No