Franchise business offerings with no down payment. Franchise without investments for implementation - we work wisely

The opportunity to do business, especially without investments, also under a well-known brand is a dream for any potential entrepreneur. And in connection with the times of crisis, there are more and more such "dreamers". In principle, such people can be understood: they are convinced that their business will allow them to feel in “economic security” and be free, both in money and in time.

However, these statements are a common misconception. An entrepreneur is a person who takes a certain risk, from which many people working "for an uncle" are insured. This danger lies in the fact that a businessman may receive his profit at the end of a certain period, or may remain with a “broken trough”. While a simple employee working for a stranger, in any case, will receive a reward for his work. Moreover, the working day for the owner of his own business begins early in the morning and ends closer to the night, in contrast to the usual schedule of office plankton “from 9 to 6”.

But if you are not afraid of the everyday life of entrepreneurs, and you are eager to try yourself in their role, then you should pay attention to the franchise business.

This scheme is convenient for beginners, as it allows you to reduce risks at first. initial stage work.

To open a franchise, you need to buy it. It would seem logical, because the company, having provided the franchisee with a brand, a business scheme honed over the years and a unique product, cannot engage in altruism and is waiting for mutually beneficial cooperation with a partner.

But what if the potential entrepreneur does not have first initial capital? Look for it. Because there are no franchises without investment. At least, such cooperation schemes are not created successful companies. And working only with trusted brands will allow you to build a truly profitable business.

As the representative of the franchisor correctly noted "Granite Doors" Petr Strukov: “If a person does not invest his own money in a business, then there will be much less motivation to work for the good of the company, therefore we work with our partners only“ in money ”. There are many young and energetic start-ups on the market today who want to try their hand at business. Whether they succeed or not is the question. But hardly a percentage successful projects will be high while closing outlets can damage the reputation of the entire company as a whole. Therefore, we respect ourselves and our partners, and do not undermine the foundations of business.”

However, there are ways to minimize the amount of money required to open a franchise business.

Franchise offerings include:

  • Commodity credit
  • Special promotions for an easy business start
  • Dealership

​​​​​​​Goods for sale

That is, the franchisee must pay for the repair and rent of the premises, as well as purchase shop equipment, after that the franchisor grants him a deferral of payment for the purchase of goods for a certain period established by the contract. Moreover, each company differs not only in terms and conditions, but also in the wording of such “indulgences” for partners.

So, for example, the company ALBA" provides goods to new partners on a commission, due to which the costs of opening a new store under the guise of a popular shoe brand are reduced from 7 million rubles to 2.5 million, which means that a novice entrepreneur will only need funds for renting and decorating premises for a store.

The company provides payment by installments up to 180 days, and the Polish clothing brand buys back unsold balances from its franchisees, thereby saving working capital point of sale. Promises commodity credit for its partners and a well-known chain of stores. And representatives of the brand of leather goods " LABBRA» make it possible to use an interest-free product limit for opening a retail outlet for a period of 60 days.

Food producers also provide deferred payment for products. True, such conditions are available only for well-established partners. For example, trademark ice cream ships goods with a two-week delay, and new partners, when ordering equipment for a retail outlet, can pay only 50% of the cost, the rest of the amount can be paid to the franchisor upon receipt of material assets.

But in order to enjoy all the joys of commodity credit, it is necessary to find cash to open shops. Meanwhile, there are companies that have foreseen this fact and offer novice entrepreneurs to try out their opportunities by opening a business on a "light" version of the franchise.

Easy start


There are franchise offers that allow you to start a business under the brand name of a large company at a special price.

Such actions are typical for both large manufacturing enterprises and ordinary Internet services.

For example, a company "ECOPAN", a manufacturer of houses from SIP panels, offers to start a business in your region for only 250 thousand rubles. This format will allow you to receive orders for the construction of houses, send them to manufacturers and earn quite decently on a percentage of orders. The main requirement is the ability to work with the customer. In the future, the partner of the company can develop his business to a full-fledged production of houses from SIP panels.

There are similar offers in clothing retail: for example, a manufacturer of designer clothes BRUSNIKA offers to start your business by opening a "corner" - a small exhibition stand in an existing clothing store. The required area is from 25 sq.m, and investments are minimal: from 300 thousand rubles.

Internet service franchises and mobile applications also differ in reasonable prices, and the opening of this business does not imply investing in renting an office space.

So, for example, representatives of the Internet service " Clean Well" call their business "home" and promise a monthly income of at least 100 thousand rubles, with an initial investment of 106 thousand rubles.

And for those who want to open their business on more tangible things with minimal investment, it is worth trying yourself as a regional dealer.

Dealership


Any manufacturer wishing to enter the federal level, is looking for its representatives in each region, who would take responsibility for the implementation of the product in the territory entrusted to them.

But manufacturers of really necessary goods that are in demand most often turn to large wholesale companies, and small players are not interested in them.

But still, there are franchisor companies that offer potential partners to try out a business niche through a dealer scheme. For example, a well-known manufacturer of office furniture works "Felix". The company offers potential partners two development schemes: franchise and dealership. Moreover, the last category does not imply the opening of the Felix branded store. , but simply gives you the opportunity to sell furniture from the manufacturing company in your store. The franchisee has more opportunities: the entire range of factory products, after-sales service and a sign with a well-known brand. Therefore, according to the representative of the franchisor, many Felix dealers subsequently become their franchisees.

The company operates in roughly the same way. "Karelian monument". To become a partner manufacturing enterprise for the manufacture of monuments and products from granite, it is necessary to rent a room and purchase exhibition samples, and the volume of required investments does not exceed 150 thousand rubles. The task of the franchisee is to ensure a stable flow of orders for the production of the enterprise. Well-established partners, the franchisor also periodically gives bonuses and provides some product samples for free.

So, the main thing is to treat business responsibly, and then your partner will help you with all his might, since the prosperity of the franchisor depends on the well-being of your enterprise.

A person who decides to open his own business and become a successful entrepreneur is always looking for ways to do it without investments and with minimal risk. It is for such novice businessmen that there are a considerable number of options, one of which is (franchising).

Description of the franchise

This scheme will allow a novice businessman not only to save his financial resources, but will also provide an opportunity to immediately interact with promoted brands. What will have a positive effect on the construction profitable business, and its continued existence.

A franchise is the legal right of an entrepreneur to use a well-known trademark for his own interests. Which will coincide with the interests of the franchisor. A franchisor is a company that, under certain agreements, provides a franchisee (a third-party natural or legal entity) all kinds of support (training, provision of goods, finance, advertising).

The main condition for opening entrepreneurial activity franchised is buying already profitable business from the franchisor. Which is interested in the further development of its already profitable business. But also, there are ways to obtain the right to use famous brand without any investment.

The benefits of running a franchise business are

  • the popularity of the leased brand;
  • rapid development of a ready-made business;
  • provided free training and consultations;
  • the presence of already working advertising;
  • providing the necessary equipment;
  • absence of competitors in the territory stipulated by the contract.

However, there are the following disadvantages of doing such business:

  • the high cost of buying a working and profitable business (franchise);
  • strict requirements imposed by the trademark owner on the franchisee;
  • often, in order to purchase a franchise, you need to own a premise with the necessary parameters;
  • the contract primarily provides for the interests of the owner of the brand;
  • the inability to make adjustments for the successful development of their own business.

In addition to the above disadvantages, the most basic is that when a trademark passes from one owner to another, the requirements and conditions for a company that has acquired a franchise for this brand may change.

Franchising Categories

Before acquiring the right to use a trademark, a novice entrepreneur needs to thoroughly study all available franchise groups. Then choose the most suitable, according to the terms of the contract and the proposed brand of the franchisor's product.

to the most common and profitable franchises include the following categories:

In connection with the numerous offers of franchising, a person who wants to start his own business needs to consider all the options offered. After that, personally discuss the terms of the contract with the owners of the selected companies, and conclude it with the most acceptable opponent.

The study of the terms of the contract document and its signing is best done together with legal professionals.

Free franchise

The concept of "free franchise" implies the minimum initial cost of the franchisee. Which are carried out on the basis of the concluded agreement, and are necessary to confirm serious intentions on the part of the entrepreneur.

There are several types of so-called free franchising:

  1. provision by a branded company to a franchisee of goods for sale. In order for the products to be given to a novice entrepreneur free of charge, he must document the availability of the necessary space and equipment for trade rented or purchased by him. It should also be taken into account that the franchisor sets certain deadlines for paying him financial resources from the products provided to them for sale;
  2. establishment of a special (underestimated) cost of a well-known trademark. Wherein this species allows a beginner to quickly create a business under a well-known brand. This method is usually used by large companies that are looking for their representatives in other regions in order to expand their activities;
  3. dealership. When a major manufacturer of a well-known product to expand regional retail space provides products to existing businesses. Basically, such dealer schemes are in demand among large wholesale companies.

Examples of free franchising

A well-known company for the production of kitchen furniture provides entrepreneurs (franchisees) to sell the goods produced in their mall. Thus, the franchisee:

  • has access to the unimpeded flow of goods for sale;
  • independently sets the price of furniture sold;
  • does not bear the cost of advertising and after-sales service, as the manufacturer takes care of them;
  • carries out the sale of goods in a store with the name of a promoted brand.

The only nuance of such a scheme is the mandatory purchase of exhibition samples of products from the manufacturer. What will serve as an insurance for the franchisor about decency and long-term cooperation with the franchisee. Also, a manufacturing enterprise can include a clause in the contract on the need to pay the rent of the premises, which it provides to the dealer, for the implementation of its entrepreneurial activities.

Franchise without investment

Many franchises require businessmen to contribute initial capital to purchase or rent commercial premises, equipment, advertising, as well as for the purchase of the first batch of products. However, there are ways to franchise without investment.

This method is an opportunity to open your own business in partnership with a franchisee without investing start-up capital.

These conditions are defined in individually, and have no serious basis in legislative definitions. Thus, a businessman is exempted from initial contributions () if he continues to make periodic payments (), such as:

  • a fixed percentage of the profit received;
  • money interest on the price difference, which in this case installs and controls the franchisor;
  • payment to the franchisor for the training, consultation or other additional services provided.

However, there are ways to obtain a franchise without paying lump-sum contributions and royalties when:

  • the owner of the brand enters new regional levels;
  • the franchisee was previously an employee of the franchisor;
  • businessman offers successful business business development plan.

It is necessary to know that even in the absence of initial and subsequent financial contributions, a novice entrepreneur is subject to a large number of risks. Therefore, it is necessary to take into account what profit the franchisor will receive if he provides a franchise without investments.

Companies offering free partnerships

Enterprise Vardek - is engaged in the manufacture of furniture. To purchase a franchise, you must have a retail outlet of at least 20 sq. meters, office equipment and Internet access.

Firm SpecTech - specializes in leasing specialized equipment. A down payment of Rs 60,000 is required. This firm provides franchisees with training, advertising, as well as all the necessary information for successful business development.

The Stuchki company produces children's toys. The franchisee must own or lease a premise of at least 8 sq. meters. On the facade of which it will be possible to place corporate logo firms.

Cons of franchising without investment

The negative aspects of acquiring franchises without investments are:

  • cheap is not always good. Therefore, a company offering to provide its brand for free for use often hides its non-competitiveness in the modern market;
  • when drafting a contract, experienced lawyers often try to hide from the opponent his subsequent financial responsibility;
  • entrepreneurial inexperience. Since often illiterate newly minted businessmen come to cheap or free projects. Which do not feel their responsibility, which leads to the loss of business activities and fines from the franchisor.

Therefore, before signing a cooperation agreement without investments, the future franchisee needs to at least attract an experienced lawyer.

In contact with

The opportunity to do business, especially without investments, also under a well-known brand is a dream for any potential entrepreneur. And in connection with the times of crisis, there are more and more such "dreamers". In principle, such people can be understood: they are convinced that their business will allow them to feel in “economic security” and be free, both in money and in time.

However, these statements are a common misconception. An entrepreneur is a person who takes a certain risk, from which many people working "for an uncle" are insured. This danger lies in the fact that a businessman may receive his profit at the end of a certain period, or may remain with a “broken trough”. While a simple employee working for a stranger, in any case, will receive a reward for his work. Moreover, the working day for the owner of his own business begins early in the morning and ends closer to the night, in contrast to the usual schedule of office plankton “from 9 to 6”.

But if you are not afraid of the everyday life of entrepreneurs, and you are eager to try yourself in their role, then you should pay attention to the franchise business.

This scheme is convenient for beginners, as it allows you to reduce risks at the initial stage of work.

To open a franchise, you need to buy it. It would seem logical, because the company, having provided the franchisee with a brand, a business scheme honed over the years and a unique product, cannot engage in altruism and is waiting for mutually beneficial cooperation with a partner.

But what if a potential entrepreneur does not have initial capital? Look for it. Because there are no franchises without investment. At least, such cooperation schemes are not created by successful companies. And working only with trusted brands will allow you to build a truly profitable business.

As the representative of the franchisor correctly noted "Granite Doors" Petr Strukov: “If a person does not invest his own money in a business, then there will be much less motivation to work for the good of the company, therefore we work with our partners only“ in money ”. There are many young and energetic start-ups on the market today who want to try their hand at business. Whether they succeed or not is the question. But it is unlikely that the percentage of successful projects will be high, and the closure of outlets can damage the reputation of the entire company as a whole. Therefore, we respect ourselves and our partners, and do not undermine the foundations of business.”

However, there are ways to minimize the amount of money required to open a franchise business.

Franchise offerings include:

  • Commodity credit
  • Special promotions for an easy business start
  • Dealership

​​​​​​​Goods for sale

That is, the franchisee must pay for the repair and rent of the premises, as well as purchase commercial equipment, after which the franchisor provides him with a deferred payment for the purchase of goods for a certain period established by the contract. Moreover, each company differs not only in terms and conditions, but also in the wording of such “indulgences” for partners.

So, for example, the company ALBA" provides goods to new partners on a commission, due to which the costs of opening a new store under the guise of a popular shoe brand are reduced from 7 million rubles to 2.5 million, which means that a novice entrepreneur will only need funds for renting and decorating premises for a store.

The company provides payment by installments up to 180 days, and the Polish clothing brand buys back unsold balances from its franchisees, thereby saving the outlet's working capital. Promises commodity credit for its partners and a well-known chain of stores. And representatives of the brand of leather goods " LABBRA» make it possible to use an interest-free product limit for opening a retail outlet for a period of 60 days.

Food producers also provide deferred payment for products. True, such conditions are available only for well-established partners. For example, an ice cream brand ships goods with a delay of two weeks, and new partners, when ordering equipment for a retail outlet, can pay only 50% of the cost, the rest of the amount can be paid to the franchisor upon receipt of material assets.

But in order to enjoy all the joys of a commodity loan, it is necessary to find funds to open outlets. Meanwhile, there are companies that have foreseen this fact and offer novice entrepreneurs to try out their opportunities by opening a business on a "light" version of the franchise.

Easy start


There are franchise offers that allow you to start a business under the brand name of a large company at a special price.

Such actions are typical for both large manufacturing enterprises and ordinary Internet services.

For example, a company "ECOPAN", a manufacturer of houses from SIP panels, offers to start a business in your region for only 250 thousand rubles. This format will allow you to receive orders for the construction of houses, send them to manufacturers and earn quite decently on a percentage of orders. The main requirement is the ability to work with the customer. In the future, the partner of the company can develop his business to a full-fledged production of houses from SIP panels.

There are similar offers in clothing retail: for example, a manufacturer of designer clothes BRUSNIKA offers to start your business by opening a "corner" - a small exhibition stand in an existing clothing store. The required area is from 25 sq.m, and investments are minimal: from 300 thousand rubles.

Franchises of Internet services and mobile applications are also distinguished by reasonable prices, and opening this business does not imply investing in renting an office space.

So, for example, representatives of the Internet service " Clean Well" call their business "home" and promise a monthly income of at least 100 thousand rubles, with an initial investment of 106 thousand rubles.

And for those who want to open their business on more tangible things with minimal investment, it is worth trying yourself as a regional dealer.

Dealership


Any manufacturer wishing to enter the federal level is looking for its representatives in each region who would take on the responsibility of selling the product in the territory entrusted to them.

But manufacturers of really necessary goods that are in demand most often turn to large wholesale companies, and small players are not interested in them.

But still, there are franchisor companies that offer potential partners to try out a business niche through a dealer scheme. For example, a well-known manufacturer of office furniture works "Felix". The company offers potential partners two development schemes: franchise and dealership. Moreover, the last category does not imply the opening of the Felix branded store. , but simply gives you the opportunity to sell furniture from the manufacturing company in your store. The franchisee has more opportunities: the entire range of factory products, after-sales service and a sign with a well-known brand. Therefore, according to the representative of the franchisor, many Felix dealers subsequently become their franchisees.

The company operates in roughly the same way. "Karelian monument". In order to become a partner of a manufacturing enterprise for the manufacture of monuments and products from granite, you need to rent a room and purchase exhibition samples, and the amount of required investment does not exceed 150 thousand rubles. The task of the franchisee is to ensure a stable flow of orders for the production of the enterprise. Well-established partners, the franchisor also periodically gives bonuses and provides some product samples for free.

So, the main thing is to treat business responsibly, and then your partner will help you with all his might, since the prosperity of the franchisor depends on the well-being of your enterprise.

Opening your own business on a ready-made business model using the opportunities provided by the promoted and famous brand, while with minimal own investment, is the dream of many aspiring entrepreneurs. This opportunity is provided by a franchise (franchising).

Franchise - description

A franchise (from the French franchise - a benefit) is a set of services provided on certain conditions for opening and running a business. Includes the granting of rights to use the brand, ways of doing business.

Franchise may be registered trademarks, proven business practices, various technologies. Obligations between the transferring party (franchisor) and the receiving party (franchisee) are formalized by a franchise agreement.

Simplifying specific terms, franchising is a type of trademark lease, as well as a kind of obtaining a license for the right to use a ready-made business model.

It is worth noting: contractual obligations, as a rule, provide for a reimbursable transfer of rights, called royalties - that is, rent. By Russian laws Franchising is governed by a commercial concession agreement.

Franchise categories

1. Franchise in trade services. The application of the franchising method in retail trade is fast way promotion of your own business, reducing the time for the accumulation of initial capital. This method is suitable for novice entrepreneurs and large players.

The most demanded directions:

  • sale of fashionable clothes;
  • sale of children's goods;
  • food products;
  • construction and finishing materials;
  • spare parts for vehicles;
  • cosmetical tools.

2. Franchise in catering. It has a fairly high level of income, but requires significant financial investments.

Steady demand is noted:

  • coffee houses stationary and mobile;
  • pizzerias;
  • fast food systems
  • fast food;
  • pancakes;
  • sushi.

3. Franchise in the service sector. This business differs in its specificity, as services are sold first of all. Examples: beauty salon, car rental, advertising agencies full cycle and other directions.

4. Franchise in IT technologies. A dynamically developing branch of the economy. Requires knowledge related to the virtual world. Examples: a web studio for creating and promoting websites different orientation, Internet reference agency.

5. Franchise in production. One of the most difficult activities. Significant initial investment required. They are distinguished by high lump-sum contributions and regular royalties. At the same time, there is a clear business development strategy, a high degree of investment reliability, and constant support from the parent company.

Franchise: free offers

From the very beginning of its inception, franchising has implied certain initial investments by the host partner (franchisee), a lump-sum fee. This payment is a one-time fee for the right to enter the market with a particular brand. In addition, franchising is the receipt of regular rental payments (royalties).

On the territory of Russia, there are companies offering a franchise without initial fees and subsequent royalties. These are various travel agencies, cosmetic companies, sales firms printed matter, tobacco products and others.

How does this happen in practice?

The parent company, interested in the presence on the market of any region, concludes an agreement with a regional partner, who undertakes to represent the interests of the franchisor, provide services or sell its products. That is, in fact, it becomes a distributor of a superior company.

Is there a franchise without investments?

The development of competition in the market caused the appearance of proposals for the acquisition of a franchise without initial investment from the franchisee.

What is a franchise without investment?

A retail-oriented franchise is built on a partnership between the franchisor and the franchisee.

For this, an agreement is made with individual, who performs the duties of the director of the company representing the interests of the parent company in the region. At the same time, this person becomes a partner of the company.

According to the concluded agreement, the director pursues the interests of the franchisor, while not deviating from the general concept of business development, there are restrictions on the choice of suppliers, regulation of costs and other main activities.

The task of the franchisee is to collect required documents, selection of premises, marketing. Registration of trading floors and filling with goods is the prerogative of the parent company. The franchisee becomes a full partner in 1 ... 2 years, provided successful work divisions.

Outcome: in the literal sense of the word, a franchise without investments is a branch of the company, where all costs are borne by the parent company. From the partner-performer, only his work is required.

Companies offering partnerships without investment

The list of companies offering these types of partnerships can include different kinds retail chains selling a wide range of consumer goods. In addition to them, travel agencies, recruitment firms organize their branches on similar conditions.

Anonymized, companies can be combined into several groups:

  1. The investor is the parent company, the franchisor, bearing all financial and material costs. The director of the branch, the franchisee, works under an agreement that provides for the possibility of transferring the business into ownership in case of its successful development.
  2. The investor is a third party. Her interest is to receive income from free accumulated capital. An investment bank or fund acts as a financier.
  3. The investor is a network marketing promotion firm. Uses the personal qualities of the attracted personnel to promote its brand and products.
  4. No lump sum. Financial interest is embedded in the cost of products sold. except trading companies, this type of franchise is practiced by manufacturers.

Negative aspects of agreements "without investments"

The phrase, “franchise without investment,” looks very attractive, but it can hide negative points.

The most common:

  1. Reassessing your strengths at the initial stage, leads to a loss of time, effort and, ultimately, the loss of business as a direction.
  2. Tricks of lawyers, constituting the contract in such a way that it contains initially impossible requirements. The result is wasted labor and a sense of deception. To avoid such errors, it is necessary to carefully approach the study of signed documents.

No down payment

No initial deposit- this is a high probability that the franchisor is interested in promoting its brand, goods and services in the regional market. That is, he is ready to incur material costs when opening a branch of the company and reimburse them in the process of business development.

Hence, mutually beneficial cooperation arises: the franchisor receives an additional source of income, and the franchisee, in the almost complete absence of initial costs, appears own business, supported by a ready-made model of its management and a promoted brand.

In what cases can you find franchise offers without initial investment?

The most likely options for the absence of initial investments is the desire of the parent company to promote its brand to the market of a particular region, that is, to carry out branding.

Another variant is the sale of their own products. Here, a franchise is like looking for a dealer or distributor.

Remotely, a franchise without investments resembles network marketing. But there are many fraudulent schemes and deceit.

The absence of a lump-sum contribution and royalties is a myth or a reality?

By studying the market, analyzing offers on the market and taking into account your own experience, you can come to the conclusion that the absence of initial costs and subsequent periodic payments has the right to exist.

But there are a number of requirements, restrictions, for example:

  1. Not a single large company that owns well-known brands, and, accordingly, goods, will enter into an agreement with an unknown person or company that does not own certain tangible assets or guarantees from insurance companies. The conclusion is simple - if there is a desire to cooperate with such organizations and thereby exploit the "trademark" sign, then to reinforce the seriousness of intentions, it is necessary to invest in this type of business at the initial stage.
  2. The absence of a lump-sum contribution and royalties also implies the removal of some responsibility from the parent company, which implies a large future investment by the franchisee. That is, the purchase of goods, advertising campaigns, transportation costs and others will fall entirely on the shoulders of the receiving party.
  3. Existing business, for example, a store, cafe, beauty salon - this is a guarantee that, with a greater degree of probability, there will be no initial fee and reduced royalties.

Most of the projects in the business world often remain unrealized due to lack of funds to start a company. Even the most up-to-date unique idea requires monetary reinforcement, otherwise, it will be possible to earn money only by selling it. A good way out in this situation is such a type of activity as a franchise without investments for implementation. Where to find it and how to choose, it will be useful for novice businessmen to know.

The essence of franchising is the transfer of a ready-made business model for use, which includes:

  • brand;
  • ways of organizing and conducting business;
  • advertising;
  • education;
  • established channels for the supply of raw materials.

Given the fact that franchise sellers are already experienced companies, we can say that a newcomer, along with all this, also receives target audience who is already familiar with the proposed product. The players of such a deal to transfer the business model are considered to be:

  • franchisor - seller;
  • the franchisee is the buyer.

The initial fee for selling a franchise is called a lump sum. Its amount and payment procedure is determined personally by the franchisor. Many companies go to meet buyers and offer installments. Its amount can range from several hundred dollars to several hundred thousand.

In addition, on a monthly basis, the user of the business model will have to pay royalties to the franchisor, which is a payment for comprehensive support and assistance in doing business.

What is a franchise without investment

Sometimes it happens that a successful company is interested in the presence of its branch in a certain region. In this case, she selects a regional partner who is granted a franchise for the sale of goods without investment. In other words, such a representative performs the function of a distributor.

Cooperation is carried out on the basis of an agreement, according to which the regional partner is the director of the company representing the interests of the head office in the region. At the same time, it also becomes a partner operating under a franchising scheme, that is, without departing from an established model this method case management:

  • respects the general concept of the enterprise;
  • cooperates with the suppliers indicated in the contract;
  • produces only the product or service that the franchisor wants to see on the market.

A franchise without an initial investment is, as a rule, an opportunity not to pay a down payment to the seller. But this becomes possible only if certain conditions are met:

  1. The franchisee still covers some of the initial expenses for starting a company. This includes rent and renovation of premises, training of employees.
  2. Independent registration of business in authorized bodies.
  3. Search for distribution channels.

The filling of trading floors and the supply of goods is usually handled by the main office.

Ways to get a franchise without start-up capital

A franchise from scratch without investments can be presented in several ways. One of them, as already mentioned, is the entry of a successful company into new markets in new regions. In this case, she herself is interested in finding such partners.

But there are a number of cases when you can become an entrepreneur without having any start-up funds:

  • opening a company as a result of working as an employee for a franchisor. This path provides an opportunity to enter the world of business not only for those who do not have money, but also for those who do not have at least minimal experience. Many large companies offer their employees special programs that allow them to grow to independent entrepreneurs. Having passed such training, an employee who has already gained experience gets the opportunity to develop a completely independent unit of the company as a franchisee;
  • receiving funds from private equity funds. Some such organizations themselves offer successful directors of, say, stores, to open a franchise without investment with the participation of the fund. The benefit of such a scheme is obvious - the fund reduces the risk, because it knows the franchisors well and at the same time carefully selects the franchisees. All financial expenses in this type of cooperation fall on the fund;
  • development of a distribution network. This model is especially true for retail when a well-promoted brand attracts small entrepreneurs to cooperation in the field of retail. At the same time, the model of developing a network of online stores is becoming quite popular, when the franchisee receives the goods only upon the fact of its sale. In this case, there is no need to rent a hall or shopping room. It is enough just to equip an office for a call center. It is usually used when the franchisor intends to increase the number of sales of his products in the shortest possible time.
  • network marketing. Please note: this model as a franchising business without investments will become such if the franchisee is registered as an individual entrepreneur. Otherwise, it will be considered normal freelancing;
  • a franchise in installments without a down payment is also most common in the field retail sales. In this case, it is assumed that the lump sum will be divided into several payment periods. A variation of this way of doing business is the provision of goods for sale. Its peculiarity is that it can turn out to be both very profitable and completely ineffective.

Other options that do not require significant costs from the franchisee include:

  • opening of sports sections, children's clubs, training centers. Most often, the franchisor will insist on having specialized education and work experience;
  • launching a specific type of business. This option occurs when the franchisor brings to the market a service or product that only a specialist in this field can work with. Under such circumstances, the presence of the franchisee's special knowledge and experience becomes more important than his financial capabilities;
  • franchising business without investments is also possible when the seller of the business model is still unknown on the market, and therefore he is ready to distribute the first franchises for free, if only to quickly develop the network.

How to get a business model

Offers from large companies Of course, it's very hard to find just like that. To become the owner of a free franchise, you need to carefully study your region and analyze unoccupied niches. After that, you can look for companies that will be interested in this and try to convince them of the need to conclude such a deal.

An important role in the process of how to get a franchise without investment will be played by the personal qualities of the franchisee:

  • knowledge and understanding of the brand with which to work;
  • ability to negotiate and find arguments;
  • management experience.

The algorithm of actions at startup will look like this:

  1. Conclusion of the contract and appointment of the franchisee to the position of director of the company.
  2. Business registration.
  3. Search and repair of premises.
  4. Hiring and training staff.
  5. Reaching the break-even point and returning the invested funds to the franchisor.

In order for a franchise without a lump-sum fee, royalties and risks to become possible, several rules must be observed:

  • find out why this offer is free. It should be clearly understood what the financial benefit of the franchisor will be;
  • check the business reputation of the seller;
  • carefully study the contract to be signed. It is desirable that an experienced lawyer take up his proofreading;
  • evaluate your own risks.

A franchise business offered without a down payment can be implemented in a variety of business areas. You should pay attention to the following:

  • sale of food products;
  • services sector;
  • tourism;
  • catering;
  • retail sale of clothing and footwear;
  • transportation;
  • auto business;
  • online shopping.

Negative sides of a free franchise

You should never forget that, in addition to the attractive side of the issue, there must certainly be disadvantages, which even experienced entrepreneurs, not to mention beginners, need to take into account:

  • fraud. Franchisors do not always behave with integrity, as a result of which the franchise buyer becomes a debtor, from whom all property is taken away through litigation;
  • the opportunity to develop a business at one's own discretion under such conditions is completely reduced to nothing. Usually the franchisor dictates all the conditions and very carefully monitors their implementation. With this mode of cooperation, he most often needs an ordinary performer;
  • there are practically no franchises that would actually turn out to be absolutely not requiring investments at the start. In one form or another, a novice entrepreneur will still have to provide some funds. Practice shows that franchisors do not really want to deal with those who have no money at all.

This leads to the conclusion - the more loyal the conditions of the seller of the business model, the more likely it is that there may be a catch somewhere. For this reason, to enter into such transactions without legal support Not recommended.

How to choose a profitable franchise: Video