The Perekrestok franchise is a profitable business

Franchisor information

The first point was opened in 1995 in Moscow. The supermarket chain was actively developing, and by 2010 the results reached 2.7 billion dollars and more than three hundred points in Russia and Ukraine. Such supermarkets include Green Crossroads, where, in addition to regular goods, they sell delicacies.

Perekrestok Express franchise - stores where there is always fresh food: bread, vegetables, milk, fruits and vegetables. Half of the retail space is occupied by fresh and food & go goods. Household chemicals, hygiene products and office supplies are on sale. Much attention is paid to the comfort of the trading floors and the selection of goods. The stores are aimed at people with average incomes.

About company

The first store called “Perekrestok” was opened in the fall of 1995 in the capital. The business was so successful that in 2012 there were already three hundred and thirty-six stores in this chain.

The buyers of these stores are those who value high-quality and fresh food products, as well as a high level of service. People come here after work to replenish their supplies with fresh food for their loved ones.

You can also become part of this network and, by purchasing a franchise, open your own “Perekrestok”.

Secrets of success

The Perekrestok chain offers products of excellent quality. This is carefully monitored by store employees. For buyers there is a promotion “I am responsible for quality!” If a person finds an expired product, he receives a reward based on its value.

Due to a partial outflow of customers and great competition, the store underwent rebranding in 2014. The logo was updated - clover and green background. This indicates the availability of fresh products. Transformation affected the trading floor and other areas. All rooms are designed for a comfortable selection of products.

Franchise CROSSROADS reviews

Despite a significant number of people wishing to purchase a franchise of this company, the majority of franchisees speak negatively about cooperation with the management of the Perekrestok chain. This is due to the unprofitability of such a business.

Vitaly from Voronezh, who bought a franchise in 2014, claims that after 2 years of operation of the supermarket, income does not increase, sometimes even decreases. Therefore, most likely, he will close his branch due to the unprofitability of the enterprise.

A similar situation applies to Oleg from Yekaterinburg, who bought a franchise in 2020. He assures that, despite the franchisor’s promises to provide assistance at all stages of business development, there was no support at all. He had to work hard around the clock to earn a good income. And even after this, the approximate payback period for the supermarket will be at least 4 years. Therefore, the franchisee is dissatisfied with the cooperation and will not recommend such a partnership to others.

Alina from Novosibirsk, who bought a franchise in 2020, has a completely different opinion. She considers it profitable to invest capital in such a business, because income is constantly increasing, which has a positive effect on profit dynamics.

Price

Compared to other types of business, the cost of a Perekrestok franchise is low. The main expenses include:

1. Lump sum payment – ​​295 thousand rubles.
2. Royalty – 3% of gross revenue.
3. Insurance premium – 0.7% of the loan limit amount.
4. Agent's remuneration is 25%.
5. The cost of setting up a store is 10 thousand rubles per sq. m. m.
6. Cash register and retail equipment – ​​3 million rubles.
7. Advertising and branded clothing – 180 thousand rubles.
8. Purchasing a license for alcohol – 450 thousand rubles.

There are no marketing fees. The entire cost of launching a Perekrestok store for 200-300 sq. m is about 7 million rubles.

The terms of the Crossroads franchise are a serious offer to serious people

Partners of the network can be owners of large-format premises, operating supermarkets and chains, private investors, and management companies.

• The cost of the Perekrestok franchise (lump sum) is 1 - 1.5 million rubles;
• investments – from 27 million rubles;
• royalty – absent;
• payback period – from 18 months;
• number of employees – 50 people;
• agency fee – up to 25%;
• sales region – Russia;
• contacts: 103473, Moscow, Suvorovskaya pl., 1, tel. +7 (495) 508-76-00, E-mail, website: www.perekrestok.ru.

Principles

The opening of a retail establishment is carried out through reverse franchising. This means that the franchisor supplies 80% of the assortment under an agency agreement. And based on sales results, the franchisee receives 25%.

The Perekrestok franchise is attractive because of the payback period in 6-24 months. The average monthly income is 800 thousand rubles. This is quite a profitable business, since not every business expects such results.

Perekrestok franchise cost

The price is determined based on the following data:

• The entrance fee is 295 thousand rubles;
• Royalty – 3% of turnover every month;
• The price will also depend on whether it is a reverse or direct franchise;
• If the buyer wants to obtain the right to trade in alcoholic products, then this will require a license, the price of which is about 450 thousand rubles;
• If there is a need to carry out construction or repair work, this is approximately another 10 thousand rubles for each square meter of area.

pros

The advantages of the Perekrestok franchise include:

1. Working under a well-known brand.
2. Offer of ready-made designs for the design of retail premises, shop windows and exterior parts.
3. Ready-made assortment and pricing policy.
4. The run command is provided.
5. Employee training.
6. Organization of logistics.
7. Support and control for 2 weeks.
8. Consulting throughout all stages.

The main advantage is the delivery of goods by one transport from one distribution center. 80% of products are supplied this way, which makes purchasing easier.

What do they offer you?

Offers the following benefits to its subsidiaries.

• You will enjoy the company's trademark and brand reputation.
• You will be able to use your franchisor's trading technologies.
• Three employees will be trained for you.
• When you open a store, you will be provided with a group of well-trained people who will work with you in the first days and set up the entire trading process.
• A regional manager will be placed above you. Which will exercise control over all work processes.
• Convenient centralized deliveries of goods by one vehicle await you.

Store location

A Perekrestok franchise store can be opened if certain requirements are met. They relate to the location of opening a retail establishment:

1. Populous area. The store may be located at intersections of pedestrian or transport lines with significant traffic.
2. Excellent visibility of the sign from different angles throughout the day.
3. The presence of equipped entrances, parking, pedestrian areas.
4. Availability of entrances at the rear for trucks of Scania size.
5. Purchasing power of the average or higher level - the average bill is from 500 rubles.
6. It is important that there are no such retail establishments within a radius of 150 meters.

Room

To open a Perekrestok store, you need to choose a suitable premises. The main requirements for it are:

1. Area – from 120 sq. m.
2. Presence of utility networks: water supply, sewerage, heating, ventilation, electricity with a power of 35 kW.
3. Availability of fire safety equipment with automatic fire extinguishing.
4. Lighting in the sales area - from 800 lux, offices and warehouses - from 400, transport passages - from 200.
5. High-speed Internet and internal PBX with 5-7 lines.
6. Unloading unit for pallets for 2-3 places.

The store sign should be visible from different angles, and at different times of the day.

Employees

Supermarkets require a large number of employees to operate. They must undergo training at a special center located in the central office. Managers and line staff need to undergo internships in supermarkets.

To improve business efficiency, specialists accompany franchisees throughout all stages of cooperation - during preparation, opening, and optimization of business processes.

Nuances of cooperation

The chain's managers are considering Moscow and the region to open new stores, which poses a challenge for entrepreneurs in other regions. But having a successful business plan, confidence in success and sufficient funds makes a difference.

If you start a business under a well-known brand, it will develop successfully. This is an almost 100% guarantee of a quick return on investment and stable profits. A businessman gets the opportunity to work under a well-known brand, as well as receive help from it to promote his business profitably.

Requirements

To open a Perekrestok franchise store, you must:

1. Register as a legal entity.
2. Have enough investment.
3. Rent a premises for a long term or purchase your own.
4. Conclude a service agreement: utilities, repair and construction, collection.
5. Obtain a liquor license.
6. Carry out repairs, decoration and equipment of the store.

Most of the goods come from the company's distribution center. But alcohol is purchased directly from suppliers. There are different reviews about the Crossroads franchise. Most of them indicate a profitable business, if you take into account all the nuances of its organization.

Crossroads Express - detailed description and features of the franchise

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"Perekrestok Express" is a chain of grocery stores owned by. Their distinctive feature is the combination of high quality products and service with reasonable prices, which makes the range of retail outlets accessible and in demand among a wide range of potential consumers.

• Franchise Features
• Franchised services
• Franchise benefits
• Franchise offer
• Requirements for franchisees

The first Perekrestok Express stores were opened in 2008. At the same time, Express Retail launched a franchise program in order to expand the business and attract partners. Today, there are 158 own and 23 franchised enterprises operating in Russia, trading under the auspices of the popular brand. All of them have convenient locations and are recognized by a wide range of customers.

aims to introduce European trading standards into domestic retail sales. Its mission is not only to develop business and make a profit, but also to help customers enjoy the shopping process.

Franchise Features

Currently, the Perekrestok Express franchise is sold exclusively in Moscow and the Moscow region, however, this limitation is not its only feature.

works with partners under a reverse franchising scheme. This technique involves concluding an agency agreement, under which the franchisee receives the right to use a trademark, a set of rights to the object of trade and a full range of goods sold. The main profit from the sale of goods is received by the parent company, and its partner receives a certain percentage of the revenue received.

To conclude an agreement, a potential franchisee must send an application for cooperation and attach a sample business plan for the project.

Franchised services

What can Perekrestok Express partners count on? According to official information provided by the company, the following types of services and opportunities are transferred under the franchise:

• the right to use the brand and trade technologies;
• training of three store employees;
• providing a plan for arranging equipment inside the store;
• transfer of business technology;
• providing a “launch team” to open the store;
• control of trade processes by the regional manager;
• full supply of products for sale;
• right to use the software.

Franchise benefits

By starting to work under the Perekrestok Express franchise, entrepreneurs have the opportunity to open their own business under a proven and popular brand, while at the same time minimizing the possible risks of commercial activity. Among other benefits of cooperation, the company’s partners receive the following benefits:

• a proven scheme for the supply of goods (no need to look for suppliers);
• the ability to manage qualified personnel (three franchisee employees undergo special training);
• minimum payback period.

Franchise offer

The costs of a Crossroads Express franchise involve a complex scheme consisting of many items:

Additional costs, some of which are included in the initial investment, include the following types of payments:

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• alcohol license – 450,000 rubles;
• deposit – 20% of the credit limit;
• insurance premium – 0.7% of the credit limit;
• trade equipment (and cash registers) – about 3 million rubles;
• construction and finishing works – 10,000 rubles + VAT per 1 sq. meter of room.

The average payback period for a project is about 18 – 24 months.

Requirements for franchisees

The main wishes of Express Retail for future partners are that the latter have suitable premises, sufficient financial assets and the desire to comply with the transmitted standards when doing business.

When opening a Perekrestok Express store, an entrepreneur will have to face many nuances and temporary difficulties. Most problems arise precisely with the selection of premises for opening a retail outlet. It must meet the following requirements:

• retail area – 100 – 400 sq.m. meters;
• repair and design in accordance with uniform network standards;
• availability of basic communications (including electrical energy with a capacity of 35 kW, water supply);
• right of ownership - ownership or long-term lease;
• availability of convenient access and area for loading and unloading goods.

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Do I need to purchase a franchise?

In order for the store to have good sales, you should choose the Perekrestok franchise. Many entrepreneurs, wanting to save money, open small stores with products that cannot compete with many supermarkets.

When starting a business on your own, there is no certainty that this business will develop successfully, since there is no one to consult with. Difficulties may arise in everything - when searching for premises, recruiting employees, purchasing equipment. Problems will also affect when searching for quality products and creating advertising. Therefore, beginners should purchase a ready-made business. Buying a franchise allows you to open a profitable and recognizable store.

Thus, to open a supermarket you need to choose a good area where there are almost no competitors. A franchise will allow you to open a profitable business in residential areas far from hypermarkets. But it should be taken into account that there must be enough population there. Then opening a store will really be a profitable business.