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The market situation in our country is characterized by increased competition in all areas. When opening your store from scratch, you cannot be sure that tomorrow a famous supermarket will not appear nearby. Under these conditions, a factor in successful market struggle for a novice businessman can be the acquisition of a franchise.

When opening your own store, a good investment option would be to acquire the rights to operate under the Pyaterochka brand. This company has long established itself as a network of social supermarkets selling affordable and high-quality products. Thus, the franchisee solves the problem of attracting customers and nearby competitors.

Development of Pyaterochka in Russia and features of the franchising model

The Pyaterochka supermarket chain belongs to one of the most stable companies in Russia. The owner of the rights to the trademark is the X5 Retail Group corporation, which is also called CJSC Trading House Perekrestok. About 5,000 stores operate under well-known brands (Perekrestok, Pyaterochka, Karusel, etc.) owned by the above corporation. Partnership with this successful enterprise has been possible since 2009 and is developing according to the reverse franchising model.

Thanks to affordable prices, Pyaterochka stores are very popular

Potential Pyaterochka franchisees target their business at middle-income buyers, often offering them a flexible system of discounts. This means that high turnover and a constant influx of new consumers into the store of a novice businessman will be ensured. According to the reverse franchise, the store’s assortment is replenished by more than 90% with DC suppliers from X5 Retail Group. All income from the sale of store products is transferred to the account of the franchisor, who then pays its franchisee an agency fee of 14.41% of the profit (depending on the choice of taxation system).

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Company Description

Pyaterochka belongs to X5 Retail Group, which is one of the largest in the retail industry. The company has developed a unique system called reverse franchising. Its essence is that the partner receives the right to use the brand, but does not pay royalties, while receiving regular rewards upon reaching a certain level of sold goods.

If we talk about numbers, the remuneration is 17% of the store’s total revenue. The advantage of working with this company is that the entire range of the outlet belongs to it. Thus, the store owner does not spend a large amount of money on purchasing goods, because they are provided to the entrepreneur for sale. This work scheme not only reduces costs, but also reduces risks.

Advantages

Let's consider the advantageous parameters when collaborating with Pyaterochka:

1. Starting a business under a well-known and proven brand, which significantly increases competitive advantages and instantly creates consumer demand.
2. Full support at all stages of establishing your own business, including training (certification) of personnel, document management, logistics activities, product deliveries, IT support and repair activities.
3. Developed supermarket project, streamlined product display scheme.
4. Control of business processes taking into account the competitive environment, infrastructure and location. Developing your own proposals to improve economic indicators of profit and costs.
5. A proven system of motivation for supermarket staff.
6. Assistance of the franchisor in finding tenants and subtenants for vacant store space.
7. Support for the purchase of uniforms, advertising media, and consumables.
8. Support in signing contracts for the supply of alcoholic beverages (in accordance with Pyaterochka regulations).

Franchisor's help

According to the agreement, the senior partner helps the subsidiary in every possible way.

Help includes:

• various assistance;
• purchase of equipment;
• software;
• promotional materials;
• search for subtenants.

And these are only the main areas of work of the franchisor with the enterprise.

Purchase of equipment

Any commercial enterprise requires a variety of commercial equipment . This includes counters, scales, racks, etc. All this will be supplied to you by companies working with Pyaterochka.

Also, for the full operation of the store, various technological equipment - refrigerators, scales. Without this it is impossible to imagine the work of a modern store.

All equipment is supplied at the lowest prices; company managers take care of this. You don't have to look for ways to contact manufacturers yourself.

Software

The company provides all the software necessary for operation. The systems are set up by partner specialists , and they also monitor the correct operation of all electronic equipment.

All scales, code readers, etc. represent a single information space. Thanks to this, you can manage your store operations quite simply and efficiently.

Promotional materials

It is impossible to imagine a modern trading enterprise without full-fledged advertising. A company that acquires a Pyaterochka franchise automatically becomes a participant in the network’s advertising campaign. This includes media advertising and general promotions.

special promotions are individually selected for each store . Each point is supplied with the necessary booklets and leaflets with descriptions of offers. If necessary, advertising is provided in local media.

Search for a subtenant

At any retail outlet there are small areas of space that cannot be used for their intended purpose. Most often this is the area between the ticket office and the exit from the hall .

It makes the most sense to sublease this area for various machines. This will give additional profit. The partner helps to find people interested in such space and helps to conclude the most profitable agreement with them.

And this is not all the help provided by the franchisor. In particular, it helps to select an alcohol supplier and conclude an adequate supply agreement.

By purchasing a franchise from the Pyaterochka store, you are acquiring a profitable business. The start-up costs are relatively low.

At the same time, you will have access to enormous resources and proven technologies. And the project pays off on average in a year or two , depending on the individual characteristics of the outlet.

You may also find this article about what a franchise is in business useful.

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What does the franchisor offer?

Let us define the main components of cooperation with CJSC Trading House Perekrestok:

• Proven technologies for doing business.
• About 92% of supplies to the store are made from the corporation's distribution centers or from our own suppliers.
• Continuous support of the activities of each supermarket.
• Every day, the owner of the Pyaterochka franchise transfers collected income to X5.
• The franchisor pays its partner an agency fee in the amount of 13-17% of the revenue received.
• Part of the corporate remuneration received is spent on employee salaries, taxes, and utility expenses.

Conditions of receipt

• Own premises or long-term lease.
• Positive business reputation and credit history.
• If the total area of ​​the supermarket can be in the range from 400 to 1100 sq. m., then, accordingly, the size of the sales area will be 300–800 sq. m.
• Availability of convenient and compliant parking and access.
• The size of the driveway to the warehouse must be sufficient for a large truck (for example, Scania) to move through it. The layout of the unloading unit should allow working with pallets, since products are delivered this way.
• The store is located in a busy place with good traffic (a residential area, near major transport hubs, at the intersection of pedestrian routes).
• The room has 2–3 telephone lines, as well as energy capacity in the recommended amount.

Compliance by the franchisee with the considered conditions will serve as auxiliary factors for the successful start of the business.

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Room design that meets corporate standards

Costs and payback forecast

The table shows the main types of costs required to open your own supermarket under the Pyaterochka franchise.

Table: expenses

The absence of royalties is explained by special terms of cooperation, according to which the franchisee receives an agency fee under the simplified taxation system - 14.41% of revenue, under the basic system - 17.5%. In many ways, a novice entrepreneur minimizes his risks and reduces costs by working according to this scheme.

The payback period for the business is approximately 18 months, which is approximately comparable to the opening of Fix Price. The average income of a supermarket is approximately 1,200,000 rubles per month. According to experts, the share of bankruptcies among Pyaterochka franchise buyers is very low: in the first 36 months of store operation - less than 5%. An indicator of the stability of this business is the fact that within 10 years from the moment of “launch”, about 90% of franchised supermarkets continue to operate successfully.

Calculation of investments in some cities of Russia

The problem is that the investor does not have the opportunity to independently calculate the exact amount he will need to open an establishment. Everything is very individual for each region; moreover, you need to take into account the fact that not every locality (even large ones) will be able to open a store.

When approving an application, many factors are taken into account, including the trafficability of the location, the presence of competitors and similar chain establishments in the area.

In general, if we focus on opening retail outlets in Russia, the conditions are as follows:

• Lump sum payment 1,000,000 rub.
• Expenses for repairs and arrangement of premises: 1,000,000 – 2,000,000 rubles.
• Purchase of equipment for a retail outlet will cost about another 1,000,000 – 2,000,000 rubles.
• Advertising at the local level is another 500,000 rubles.

The total comes out to about 4,000,000 – 5,000,000 rubles. Start from this amount, but detailed information about the initial investment should be checked with the copyright holder. You can contact us, including by phone; contact details are provided at the link above.

Paperwork

A potential partner of Pyaterochka enters into a commercial concession agreement registered with Rospatent. To begin cooperation, in addition to the agency agreement, a non-disclosure agreement is also signed. An entrepreneur needs to know that according to Russian legislation, any work activity must be registered in some legal form (LLC or individual entrepreneur). Only after proper registration of a business entity is it possible to sign a concession agreement.

Table: registration of LLC and individual entrepreneur

A comparative analysis shows that various business entities have their own positive and negative sides. However, to minimize their own property risks, most entrepreneurs choose the LLC form.

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Disadvantages of a franchise and possible difficulties

There are aspects that may not suit a potential franchisee:

• Not all entrepreneurs are ready to work under the reverse franchising system, receiving only an agency fee. When collaborating with other food retailers, a businessman will have to pay royalties and bear higher risks, but the possibility of income may be slightly higher.
• X5 Retail Group does not offer franchise cooperation in all regions, due to logistics and other aspects.
• The presence of a certain external control on the part of the franchisor may not be liked by some businessmen.

Advantages of a franchise

By purchasing a Pyaterochka store franchise, you acquire not only the trademark itself. First of all, you are given all the documentation necessary for the normal launch of the store . Also, the businessman receives all the necessary information at the current time.

At the same time , all trading technologies operating in this network are transferred. This makes it possible to immediately start working without wasting time searching for a working model and polishing it.

The partner makes the initial selection of personnel. Training takes place if necessary. For this purpose, X5 Retail Group has special training centers. As a result, the starting business receives fully trained staff .

Modern trading cannot be imagined without software and computer technology.

Whoever buys a franchise gets access to the network's unified software . He also has access to all the company’s information resources. This makes it possible to quickly manage the process.

The company's logistics specialists will constantly monitor all incoming goods. What will make it impossible for goods to be out of stock on the shelves also prevents the accumulation of surplus.

Advertising support helps to quickly promote a new outlet.

X5 Retail Group helps partners purchase all the equipment necessary for their work. All Pyaterochka suppliers will also work with you. Moreover, deliveries will also be made from factories working only with this network.

But the most important advantage of the Pyaterochka franchise is the low price of entry into the market and the minimal risk of business ruin. A store under this trademark faces virtually no competition.

Reviews

To make it easier for you to make your choice, we have collected reviews for you about the Pyaterochka franchise.

I had free space for a store, so it was easier to join in. In my city, I have already opened two similar points that regularly generate income. I’ll say right away that business is not very simple; you always need to keep your finger on the pulse. But, after opening the second point, I was able to afford to hire experienced people who do hard work conscientiously.

Alexander

https://moneybrain.ru/franchizy/pyaterochka/

I have heard more than once that there is nothing to do in this area: it is expensive, unprofitable, difficult. I regret that I myself thought so for a long time. When I decided it was time to change something, I turned my attention to the Pyaterochka franchise. The conditions are acceptable, and so is the entry price. I opened the format in my city, and I don’t plan to stop there.

Stanislav

https://moneybrain.ru/franchizy/pyaterochka/

I consider using a franchise from the Pyaterochka chain profitable and long-term. All assistance from the copyright holder can be considered full-fledged bonuses, which, naturally, only make it easier to cooperate. I am seriously considering cooperation in the future. After all, the conditions are really favorable...

Alexey Kiselev

https://www.forumbusiness.net/showthread.php?t=22449

If you are seriously choosing a mixed goods store franchise, then Pyaterochka is an excellent option. You just need to take into account the population of the nearby neighborhood. After all, they will be your regular customers.

Ivan Stoletov

https://www.forumbusiness.net/showthread.php?t=22449

Pyaterochka franchise reviews

Review #1

“Before starting cooperation, I read a lot of reviews. I was immediately interested in Pyaterochka, since I liked this store the most. I read both bad and good and still decided. Now I receive a stable and considerable income. This is a very good experience for me. This is not the first time I’ve been involved with a grocery store, before that I owned my own and how many problems stood in my way, although it was small. Working under the supervision of established and successful businessmen means, first of all, not having many problems.”

Review #2

“Great competition in the food sector scared me away for a very long time. But in the end, I finally decided on the Pyaterochka franchise. And it’s a shame that I didn’t do this earlier. The business paid off quickly, and I plan to open a second store. The work is not as easy as it seems, but in fact there are simply no problems, since the franchisor helps with everything. If I do open a second store, I will leave the first one under the guidance of competent specialists, which will allow me to devote more time to the new project, because the first store no longer requires my constant presence.”

Video: franchise description from X5 Retail Group

So, cooperation with a federal grocery chain has significant advantages compared to opening a store under your own name. In our time of crisis, most consumers do not want to overpay and know that they can buy high-quality and inexpensive products in a chain store. Positive consumer demand is also complemented by comprehensive support from franchisees in advertising, logistics, IT, etc., giving a strong start to business.

• Author: Oleg Tatsiy
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