Online franchise store
A crisis, paradoxically, is the best time to start and buy a franchise for an online store, an IT project, a provider, a cellular franchise, or a mobile application.
How to make money from your own business? Purchasing a ready-made business will allow you to receive full partner support and obtain the necessary information regarding brand development.
Online stores differ in a number of features and have their own advantages and disadvantages. How to open a cheap online store from scratch yourself? You can start a startup yourself, or you can simply purchase a franchise and start much safer.
Business without investment in the Internet space is possible and brings its owners a stable high income. You can open an online store as a franchise with minimal investment.
On video: How to make money from franchising
Step-by-step guide on how to open an online store franchise
Ways to purchase a franchise without investment
Most often, in order to be able to use a franchise, an entrepreneur needs to pay for it.
But there are a number of ways in which you can purchase a business without starting capital. In these cases, the company assumes the lump sum contribution. In addition, if you cannot do without contributions, it is recommended to find interested investors. However, in this case, you will need to write a detailed business plan, since no one will simply contribute their funds without calculating certain risks. Let us consider in detail this, as well as other options for obtaining a franchise without investment.
- No lump sum fee. For beginning entrepreneurs, such franchises are the best. They are in great demand and popularity. This type of business is excellent for people who cannot find enough funds to start their own business. There are two possible ways to purchase a product without a lump sum payment: obtaining a franchise without investments for sale and in installments. Hundreds of companies around the world do business in this way to attract new partners. At the same time, the conclusion of a contract may subsequently completely fail to meet expectations, but the opposite often happens.
- Network company as an investor .
Network organizations that independently sell products from well-known brands regularly act as investors. Thanks to such activities, an aspiring businessman develops skills such as communication skills and the ability to sell any product. These qualities are needed both in the business environment and in everyday life. - Third party as an investor. In this case, the entrepreneur is looking for a sponsor to develop the business. The most difficult thing is to interest a potential investor in the proposal. It is important to show that all risks have been calculated, and after developing the business, he will receive a profit several times greater than his investment.
- The investor is the franchisor company. The best way to get a franchise from a company is to get a job there. In this case, you must be active and proactive. An additional advantage will be the fact of successfully running a previous business. The Redcube company operates under a similar program.
- Franchises with active sales. This option will require active sales skills. You will also have to make at least a minimal investment. The franchisor company will not require the businessman to make a lump sum contribution.
- As an investor – a private equity fund. A number of investment funds offer novice businessmen, as well as experienced entrepreneurs, to create their own franchise business with the direct participation of the fund. Such organizations have certain partnership programs with specific franchisors. This position is beneficial to everyone: the fund strictly selects candidates and thereby reduces risks; franchisors work only with trusted partners; businessmen operate with minimal investments under the tutelage of serious organizations. This path is the most difficult. Only a few pass the selection. But after this you can be sure of the right choice. Now you know where to find and get investments to start a franchise business.
Most often, the franchisor presents a number of the following requirements to a candidate for a franchise:
- a businessman needs to be able to communicate correctly with potential buyers. Each requires an individual approach;
- the entrepreneur must have the skills to fill out any documentation;
- It is desirable that the candidate has previously worked as a manager before purchasing a franchise;
- requires knowledge in the field of marketing;
- Sometimes the education of a potential candidate plays an important role.
For residents of megacities, many companies issue rights to use franchises without any problems. But, if a businessman lives somewhere in a small town, then certain problems may arise. However, there will still be several worthy options for consideration and further activities.
After purchasing a franchise, you will need to sign an agreement. The order of further actions will be as follows:
- preparation of necessary documents;
- searching for the required premises;
- passing all kinds of checks;
- organization of an advertising campaign and its implementation;
- hiring and training employees;
- after reaching a profit - independent management of the enterprise.
Internet franchise
Internet franchises are the same work under the franchising system, only taken to a new level.
An Internet franchise involves opening not only an online store; the scope of distribution of Internet franchises is much wider. This also includes online services, entertainment sites, mobile application services and other options for Internet franchise projects.
Today, Internet franchises are just gaining momentum, which means that the purchase of an Internet franchise should not be postponed if you want to have time to “collect the cream” in the free and promising niche of Internet franchises.
Advantages of Internet franchises:
- Internet franchising is a proven business model;
- To operate an Internet franchise, you do not need to have specialized knowledge;
- An online franchise gives you the opportunity to work under a recognizable popular brand;
- With an Internet franchise, potential clients of your service can be located anywhere in the world.
- The service launched under an Internet franchise will operate around the clock, without breaks for lunch and weekends;
- An Internet franchise will cost an entrepreneur significantly less than a franchise of an off-line project, and even more so than a business from scratch;
- By purchasing an Internet franchise, a businessman receives all the necessary assistance in creating a website, training staff, promoting the service, and so on.
The most important thing before buying an Internet franchise is to choose the field of activity in which you would like to work. Next, send requests for Internet franchise details to several or all franchisors in this category in our directory.
Try to become a user of those services whose Internet franchises you are considering; you should like it. This will help you choose the most suitable Internet franchise.
When comparing the terms of several Internet franchises, pay attention to brand recognition, the size of the initial investment, lump-sum payment, monthly payments and the payback period for investments in a particular Internet franchise. These indicators may vary for different Internet franchises.
An Internet franchise is suitable for both beginners starting to work for themselves and experienced businessmen whose Internet franchise business can be a companion business or launched to diversify an existing project.
With an Internet franchise you can launch a wide variety of services or online stores. An Internet franchise allows an entrepreneur to choose exactly the area of business that is closest to his liking, because the range of applications for Internet franchises is quite wide.
On average, Internet franchises quickly pay for themselves, because investments in Internet franchises are minimal. This is due to the absence of the need to rent an expensive office, hire staff or purchase equipment to operate an Internet franchise.
If your choice is an Internet franchise, you can be confident in the success of your business, because thanks to the quick payback, your project will begin to bring tangible profits soon after launch.
Negative points
It is always worth remembering the saying about free cheese. Especially when it comes to such a responsible matter as purchasing a franchise. There are two disadvantages because of which a number of entrepreneurs are afraid to sign an agreement with such a company:
- fraud . Since today franchises without a lump sum fee are extremely popular, offers have appeared on the market that are on the verge of the law. Therefore, it is worth carefully studying all the documentation.
- legal tricks. Unscrupulous companies hire professional lawyers who deliberately pile various terms on top of each other in the contract. There may be hidden obligations and requirements behind them. To avoid being deceived, pay for the services of a personal lawyer to study the contract.
There are more and more goods and services on the market today every day. Accordingly, competition increases. Therefore, companies have to open branches in many cities.
For most, this method is survival. Based on this, you should not be alarmed or scared when the entrance fee becomes minimal. In the current situation, this method is economically justified.
It is important to remember something else - there are simply no absolutely free franchises.
Investments may not be money, but long work, perseverance, perseverance and a significant investment of time. Their total value is much higher than money.
No amount of finance will be enough if you do not first invest the assets mentioned above to the required extent.
Is it possible to purchase the right to a trademark in your city without a lump sum fee?
As has already become clear from all of the above, investments still cannot be avoided. Even if you choose the most profitable option, you will need to close bills for the phone, Internet and other current expenses. In order to open a normal business, you will have to spend money on renting office space, if necessary, on repairs, purchasing products, consumables and, of course, pay a little attention to marketing.
Even if the franchisor exempts the franchisee from the initial payment and/or royalties, a franchise without investments seems like a fiction, because free cheese only comes in a mousetrap. Moreover, in addition to the listed payments, opening a business project requires serious financial investments. Main expenses when starting your own business:
- registration of individual entrepreneurs;
- payment of the state fee for registration with Rospatent (an important stage of franchise cooperation);
- rental of premises or its official purchase;
- carrying out full repairs;
- purchase and installation of new necessary equipment;
- an exhibition of advertising signs that externally decorate the store;
- hiring several employees, salaries;
- payment of utilities;
- ordering various goods.
In addition, one of the basic requirements of a franchise is that the candidate has money that can cover certain costs of organizing a business.
The question arises: how in such conditions can you open your own business under the name of a popular brand without deposits? This is possible in the following cases:
- Finding a depositor who is willing to cover the costs.
- Registration of a franchise using credit funds.
- Search for a franchise offer without a down payment and royalties, or with a minimum amount of deposits.
- Launching a franchise based on an already established business.
Catalog of top 20 franchises without investment
Name | Sphere | Contributions | Royalty | Investments | Square | Profit every month | Payback |
Your Bear | Stuffed Toys | 25,000 rubles | No | 5,000 rubles | 5 square meters | 40,000 rubles | 1 month |
Big teddy bears | A toy shop | 24,000 rubles | No | 1,000 rubles | 1 square meter | 50,000 rubles | 1 month |
Sleepy | Sale of blankets | 180,000 rubles | No | 5,000 rubles | 5 square meters | 150,000 rubles | 1 month |
Wallet Kazhan | Selling purses | 10,000 rubles | No | 1 ruble | 1 square meter | 40,000 rubles | 1 month |
Fitness Hour | Radio show | 5,000 rubles | No | 1 ruble | 2 square meters | 30,000 rubles | 1 month |
Cardzavod | Plastic cards | 15,000 rubles | No | 1 ruble | 2 square meters | 35,000 rubles | 1 month |
Ros-Ticket | Transport services | No | No | No | 20 square meters | From 20 to 70% of the ticket price | 1 month |
My Finance - a franchise of a microfinance organization without investment | MFO | 50,000 rubles | 5% | 100,000 rubles | 12 square meters | 30,000 rubles | 3 months |
Mig Invest | MFO | 55,000 rubles | 15% | 250,000 rubles | 15 square meters | 60,000 rubles | 4 months |
Spas Capital | Law Firm | 25,000 rubles | No | 1 ruble | 15 square meters | 50,000 rubles | 1 month |
UPS Service | Medicine | 100 dollars | No | 1 dollar | 1 square meter | 700 dollars | 1 month |
Wi Fligth | Advertising agency | 20,000 rubles | No | 500 rubles | 10 square meters | 50,000 rubles | 2 months |
IZI.parts | Search engines | 60,000 rubles | No | 3,000 rubles | 1 square meter | 18,000 rubles | 3 months |
Video eye | Security systems | 35,000 rubles | No | 10 rubles | 10 square meters | 50,000 rubles | 1 month |
Mr.Card | Plastic cards | 10,000 rubles | No | 1 ruble | Not necessary | 40,000 rubles | 1 month |
4mobile.me | Mobile applications | 35,000 rubles | No | 1 ruble | Not required | 50,000 rubles | 1 month |
SPAS Client | Call back service | 30,000 rubles | No | 1 ruble | Not necessary | 40,000 rubles | 1 month |
ViCard | Business Cards | 20,000 rubles | No | 1 ruble | 1 square meter | 30,000 rubles | 1 month |
Flagship | Men's magazine | 30,000 rubles | No | 1,000 rubles | 20 square meters | 60,000 rubles | 1 month |
5sky | 60,000 rubles | No | 1 ruble | Not necessary | 90,000 rubles | 1 month |
Advantages and disadvantages
So, to understand whether it is worth buying a franchise, you should analyze the pros and cons of this business. Main advantages:
- Recipe for successful development. The franchise's formula has long been proven. It is already spinning on the market. The franchise also benefits from greater efficiency and profitability, which is considered the result of a unified direction.
- Open financing. The franchise seller, most often, helps businessmen find money to develop their business. Often, the seller himself finances the project.
If businessmen wish to find outside financing, lending institutions are often more receptive because franchises are considered less risky than start-ups.
- Help. Franchisors provide business owners with training programs to help them learn all aspects of the business. They also help with choosing premises and training employees.
- Famous name. Franchisors advertise, often on a huge scale, to benefit their business. A popular name helps development. In many cases, potential buyers of a franchise already know what products and services it provides.
- Significant savings. Serious organizations buy products in large quantities, and this will help save money for franchise buyers.
More about the disadvantages:
- Goodbye independence. A beginning businessman must prepare for the fact that he will not have any rights, because everything is decided by the Franchisor. It is the brand owner who can dictate what goods and services can be offered, what signage and advertisements are allowed to be displayed, and what the visual appearance should be. The organization may also have rules regarding work hours, dress codes, and bookkeeping. accounting.
- Unrealistic expenses. The entrepreneur must make a down payment, which is usually a considerable amount. Other primary expenses may include renting premises, ordering equipment, and purchasing insurance. After opening a business, the client most often must pay a percentage of gross sales, as well as annual royalties to the franchise owner.
- There are no guarantees in the future. The franchise agreement is valid for a specific period. At the end of the agreement, its owner may not offer the same terms as the terms of the original contract. The franchisor can also terminate the agreement if the client violates the rules or does not comply with the official terms specified in the contract.
Aspiring entrepreneurs should consider the pros and cons of a franchise before thinking about investing. In many ways, franchising is considered a profitable option that provides a good base for success. However, for those who dream of making their own decisions in business, a franchise may not be the best idea. One thing can be said for sure: this type of business is suitable for those who like to take risks and understand all the intricacies of their work.