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Franchising In Russia & ex-USSR !

Franchising can be a key to establishing effective partnerships. It is the right time to seek for franchises in Russia. Many international brands are very popular in this country.

In Russia & ex-USSR  the interest to this economic instrument revived in 1990-s when practically simultaneously some franchise systems, both domestic and with invested capital, appeared. The solution to many economic problems of modern Russia needs new economic mechanisms. One of such mechanisms is franchising. We can state that franchising nowadays is one of the most important tools enhancing the effectiveness of small business.The establishment of franchising doesn`t happen overnight, it takes years.                     And from year to year the market of franchising in Russia becomes more transparent and attractive.

  • As far as small and medium businesses in Russia have their own specific Russian features in comparison with the European and American businesses, franchising in Russia also has its peculiarities, because all franchise companies are small and medium enterprises. Almost everyone needs working space and loans, everyone reports to regulatory authorities, however in the West all the processes basically adhere to clear rules, while in Russia they adhere to well-known entrepreneur practices. All in all franchising is a great opportunity to give business a try. Even an absolute beginner in this field having an ardent desire to start a business can implement his plans with minimum risk. By purchasing a franchise an entrepreneur starts to work under a well-known and respected brand, and therefore receives all the benefits of cooperative advertising program - not only locally, but also nationally and sometimes internationally.

    Like everywhere in the world, in Russia the most popular franchises are those relating to the retail trade, nearly 50%. Next comes the franchise of restaurants and fast foods, and the third place is taken by the domestic service.

    Currently in Russia there are only 440 franchises, and the majority is concentrated in large cities. As for medium-sized cities and towns, the franchise has not reached them yet.

    This suggests that the franchising in Russia is not just promising, but highly promising. And though experts agree that doing business in Russia is not easy (even for the franchise), the success stories of the franchises existing in Russia say that with the will and good training the  development of franchises in Russia has a huge potential.

     

    You only need to well pave the way. It is impossible to develop a franchise in another country according to the conventional system. It is necessary to adapt franchise agreement, pre-contract documents, adapt the conditions to obtain the Master-franchise and all the existing documents. It is necessary to have legal and consulting partners operating in the field who have experience in this matter.

    But after creating his franchise system in Russia, a franchisor gets a huge potential for his business development in the country, which is included in the top five BRIC countries.

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