Wholesale food franchise. Sale of store franchises

Trade franchises are in second place after the sphere Catering by the number of offers on the market. Both parties can benefit from this form of business. For the franchisor, this means expanding the sales market, the volume of products sold, strengthening the position of its brand and crowding out competitors. For franchisees, it is an opportunity to immediately start making money selling well-known and recognizable goods, together with a major player in this business, according to a scheme tested many times and under vigilant supervision.

How does a franchise work in a trade

The franchisor, on a reimbursable basis, transfers to the franchisee the right to sell his goods (or the goods of his partners, as well as goods, the production technology of which he transfers) under his own brand.

For the franchisor, this scheme has several big advantages at once:

• Selling your products

This option is relevant for those cases when the franchisee acts only as a distributor of products that he is obliged to purchase from the franchisor.

• Growth in brand awareness and value

The wider the coverage of the territory in which it is represented trademark, the more it is recognizable and the in great demand uses the products of the franchisor.

• Cost savings

The franchisor does not need to spend his own money to open a new outlet. Everything is done according to his template, but at the expense of the franchisee. In the end, the main brand wins.

• Getting a stable profit

It can "drip" both at the expense of royalties and lump-sum contributions, and due to the constant sale of products produced by the franchisor or sold by him at a price higher than that at which he buys it.

Franchise payback in Russia

The franchisee receives the right to own a recognizable trade brand, a store launch scheme, assistance in staff training, consultations, necessary equipment and goods, saves on advertising and brand promotion. This allows you to significantly reduce the payback period of investments in the business, reduces the risk of "burn out".

In general, franchising in the trade is beneficial to both parties, and both parties strive to do everything in their power to make the outlet prosper.

What are retail franchises?

The main groups are distinguished depending on who the franchisor is and who the franchisee is, as well as what exactly they are doing.

1. Franchise for production and trade

With this form of business, the right to produce a certain product is transferred, the necessary equipment and raw materials are supplied, secrets and recipes are transferred. Further, the franchisee has the right to trade in products manufactured under the parent brand. Sometimes the franchisor himself purchases consignments of goods produced in such a production (for example, building materials).

1. Franchises in retail

A manufacturer of something sells franchises to open a retail outlet where its product will be sold at retail. Usually a brand has its own points of sale, but they are either not enough, or there is simply a need to expand the sales market with minimal or no financial costs.

1. wholesale franchise

One company that buys goods in bulk and sells them through own network retail or wholesale sales, opens franchise outlets by the franchisee and obliges him to purchase its goods in a certain volume. The brand earns on the difference between wholesale and retail prices.

The largest franchise exhibition in Eastern Europe opened in Moscow

Requirements for the franchisee

Part of the requirements can be attributed to the disadvantages of franchising. The requirements in the commercial concession agreement are described. We list the main points below:

• The outlet must be located in a specific location. For example, in a city with a population of at least XXX thousand people, in a well-traversed area. Most willing to sell franchises for shopping centers that meet a number of criteria.
• Store size, appearance and equipment are strictly regulated. This is done in order to unify all trading network brand. Wherever the store is located, the buyer should easily navigate in any of them if he has visited it at least once. It also takes into account the height of the ceilings, the number of floors in the shopping center, the presence of an emergency exit, and much more.
• Requirements apply to the environment of the store. The franchisor looks for other outlets nearby that sell a similar product at the same price.
• Personnel must be in uniform. Often there are requirements for the age and gender of employees who will work directly with customers. The number of employees is also regulated.
• One of the main conditions is that the franchisee undertakes to purchase on a regular basis a certain volume of goods from the franchisor (or to produce and sell a certain volume of products). Specific figures are written in the franchise agreement. If the previous batch of goods has not yet been sold out, it does not matter. And there is a big risk in this - after all, if the franchisee does not have time to sell one batch of goods on time, then he does not have money to purchase the next one, which is prerequisite, failure to comply with which may result in sanctions and even termination of the contract.
• Under the banner of a franchisor, only certain brands can be sold. This is either a product supplied by the franchisor itself, or a product of its partners, a list of which is transferred to the franchisee. The latter cannot take and start selling related products or other brands.

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Retail chain franchises

Most often on Russian market you can find franchises of food outlets, as well as supermarkets and supermarkets, pet stores, pharmacies.

1. Beethoven Pet Shop Franchise

The network stores sell goods for pets, of which there are over 17,000 items. The lump-sum contribution is 170,000 rubles, the total investment reaches 4 million, including equipment and equipment not only for the store itself, but also for the warehouse. Franchise return on condition active sales ranges from one to one and a half years. Royalties - 2% of turnover.

1. Shark Kids (Acoola)

Acoola, a chain of fashionable children's clothing stores, sells goods (clothing and footwear) for children aged 2 to 14 years. The amount of required investment is 3.5 million rubles. The franchise buyer is only required to pay for the supply of equipment, the development of a design project, the first batch of goods (subject to the purchase of subsequent batches within a specified period).

The trading franchise is currently very popular among start-up entrepreneurs in Moscow, St. Petersburg and other regions of Russia. This is explained, first of all, by the fact that the vast majority of them, in an effort to maintain their positions in the market, prefer to cooperate with more experienced entrepreneurs. To this end, they acquire various kinds of retail franchises. Especially profitable for buying a franchise boutique is the period of financial crisis. Buying a store franchise for novice businessmen is also driven by the need to increase revenue, develop a stable customer base, and also reduce costs.

Those who decide to open their own franchise boutique retail, select the most suitable retail franchise based on the size of the initial investment, the payback period, as well as the speed of reaching the break-even point.

Benefits of a Retail Store Franchise

The most important benefit for franchisees is saving their own Money. In addition, they enlist the marketing, accounting, and legal support of franchisors who are already experienced in the trade and have some market power.

The vast majority of franchisor organizations provide free consultation, assistance in the selection and training of employees.

It is possible for franchisees to create their own franchise networks. It is especially relevant in cases where it is planned to work not only in major cities, but also in small settlements. For franchisees, this is much more effective than joining an existing franchise network.

Retail Franchise Directory

The store catalog contains a variety of franchise offers trading companies and boutiques for those who are going to buy trading company. The most popular franchise offers from retailers contained in the catalog today are the following:

• a network of boutiques of products made from linen and sheep's wool "Fashionable Sheep";
• salon of auto parts "Korika-auto";
• salon menswear"Circle Boutique";
• shoe salon handmade"Migliori"
• network of auto parts stores for foreign cars "Auto-Koreets", "Auto-Japanese".

If you are interested in the offer of any particular organization from those presented in the catalog, then you can go directly from the catalog to the official website of this organization to get more detailed information on the terms of cooperation, the amount of initial investment, the amount of royalties, requirements for franchisees

A franchise is a set of benefits necessary for doing business, which includes the franchisor's business model, brand and other components. entrepreneurial activity. A franchise in a trade may include original technology, business method, and trademark and use of equipment. All this is transferred for a fee from the owner to the recipient, along with obligations and benefits.

Franchising in trade is the simplest and most fast way promoting their business on the market, since the franchisee gets at its disposal a deliberately profitable profitable business. In addition, the franchiser is usually ready to provide comprehensive assistance and support to his franchisee (buying side), because the success of his enterprise lies in the interests of the franchisor (selling side).

Franchise cost: components

To buy a franchise in the trade, you must pay a mandatory lump-sum (general) fee, which confirms the buyer's right to use the set of conditions. The franchisee also pays a certain percentage of the turnover (royalty) to the trademark owner on a monthly basis. In addition, the cost of the franchise includes capital that will cover the costs of starting a business (the price of renting / buying premises, equipment, paying employees, etc.). These funds are transferred to the franchisor if he transfers the "ready" outlet. Use the franchise catalog on our portal to choose the most profitable franchise.

Advantages of a franchise in trade

A franchise provides huge benefits to a company or entrepreneur who decides to open their own business, for example:

• No need to promote the brand. Typically, brands transferred under a franchise agreement are recognizable, and therefore do not need active promotion.
• Rapid business development. Buying ready business, the entrepreneur immediately reaches normal trading volumes. He does not need to win the trust of potential buyers.
• Consulting, training and comprehensive support. Thanks to the active support of the franchisor, the franchise user avoids typical mistakes that are made by almost all entrepreneurs who start their business from scratch.
• Stable position in the market. A franchise implies clear territorial boundaries for doing business, which automatically excludes the appearance of competitors.

So a franchise is profitable way establish a business and earn income.

When a person opens his own business, he has to face a lot of problems - to promote a brand from scratch, to develop technologies. In such conditions, it takes years to get a decent result. But at this time, competitors do not stand still, as the heroine said Carroll, « to stay in place, you have to run". That is why everyone who knows what a franchise is and how it works, tries to compare the possibilities of a franchise before investing big money in their business.

• What is a franchise and how does it work? How to buy a franchise and what typical mistakes does the entrepreneur? We will try to provide as much information as possible.

What is Franchise in simple words

Franchise is when enterprises with proven technology and famous brand allow other companies to use their name. In addition to the name, they also pass on other knowledge, such as production technologies, corporate standards, patent rights and inventions. This is the definition of a franchise. in simple terms.

The first company that comes to mind when we hear the word "franchise" is McDonald's, but franchising has much older roots. Isaac Singer, inventor of the famous sewing machine Zinger, in 1858, was the first to lay the foundations for the concept of franchising. He began to sell licenses to distributors in different parts of the country, providing them own goods and training staff.

According to the formal definition, a franchise is a permission for a legal or natural person to use the benefits franchisor. At the same time, the one who acquires this right is called franchisees, and the whole business model is called franchising.

Sometimes this right is transferred free of charge, but more often franchisees obligated to pay for the benefit received. The fee is divided into two parts:

1. Lump sum. A one-time amount that is transferred at the conclusion of a franchise agreement.
2. . Monthly or annual payment.

Each franchisor develops its own conditions, which may differ significantly.

• There is no concept of a franchise in Russian legislation. In Chapter 54 of the Civil Code of the Russian Federation, a definition of a commercial concession is introduced, according to which a complex of benefits is transferred by the copyright holder.

The aforementioned chain of fast food restaurants owns less than half of 36000 restaurants; most open on a franchise basis. gives you the right to use your famous brand, logo, menu and so on. Businessmen who own restaurants, in turn, pay fees (royalties), which are calculated as a percentage of sales.

This is the main compromise in the franchise relationship. Franchisor ( in this example McDonald's) allows other people (franchisees) to use the business model and brand awareness, and in return receives a percentage of the turnover.

What are royalties and franchise fees?

One of the most frequently asked questions is how much does it cost to open a franchise business? You can estimate the costs at the stage of choosing a franchise.

The initial payment in the form of a fixed amount is called lump sum, periodic payments for continued cooperation - royalty.

In exchange for the right to use the franchisor's name, product or technology, some or all of the following fees are usually required:

• Lump sum– initial franchise fee, which is non-refundable. The size of the amount varies greatly, but the trend is as follows: the higher the degree of brand recognition, the more expensive the entry "under the wing" of a strong company.
• paid on a regular basis monthly or quarterly) during the term of the contract. A kind of membership dues, in fact. Fixed amounts or percentages of gross sales - the options are different.
• Tuition fee- some franchisors include training in the price of a lump-sum fee, some take it out as a separate line.
• Advertising fees are contributed to the advertising or marketing fund of the parent company. This money is spent on TV and radio advertising, development and printing of POS materials (booklets, posters, flyers).
• Franchise renewal (renewal) is the fee for renewing the franchise agreement.

Large franchisors often develop multiple brand entry schemes. Preliminary calculations of payback and profitability for a particular region are taken into account.

For example, the franchise 220 volt”is transferred free of charge, however, the partner undertakes to purchase goods only from the franchisor.

Franchise types

The word franchise translated from French means " benefit". As you know, benefits are different. Depending on how different franchisors allow their name to be used and what they offer in return, there are three main types:

• business franchise;
• commodity;
• production.

Business Franchise

What is a business franchise? This is the most common type of relationship in which the franchisor offers an established business, including the name and trademark, to independent entrepreneurs. good example restaurants of this type are fast food. The franchise catalog contains both long-established brands - Papa Johns Coffeeshop Company, and new ones - " Food from the Champion", bar " Honey, I'll call you back».

The franchisee receives assistance from the parent company in the selection, planning and design of the premises, recruitment and training of staff, and development of the marketing component. Lump sums and royalties vary greatly, sothat it is necessary to carefully look at the conditions of each particular company. This type of franchise is often referred to as a "turnkey business" as the franchisee gets almost everything they need to start their own business.

Commodity franchise

The franchisee receives the right to distribute the product manufactured by the franchisor. Well-known commodity franchises are, for example, or any other car manufacturer, some brands of clothing and shoes: Incanto, BAON, ALBA.

This type of franchising often does not involve royalties. The franchisee is required to purchase a certain volume of the franchisor's product or range of products. And he provides national advertising campaigns, provides logo and trademark.

Production franchise

The manufacturer grants the right to manufacture and sell goods using its brand and trademark. This type is widespread in the food and beverage industry, for example -.

Another technical point that is important to understand when looking for a suitable idea for investing money. The rights that a franchise agreement provides differ greatly in one case or another.

What are the franchises

• Direct Franchise- the franchisor grants the right to open one enterprise in the agreed place. The oldest and most simple form relationships. The disadvantage is this: if the franchisee has the desire and ability to open additional outlets, each time a new contract and new monetary contributions are required. That is, on the example of a clothing store: it is impossible to open another store without coordinating the issue with the parent company and without paying a lump-sum fee.
• Multi-franchise- the buyer receives the right and obligation to launch a certain number of production / trading places in a certain area for a fixed period of time.
• Master Franchise similar to the previous paragraph, but has one significant difference: the franchisee receives the right and obligation on its own behalf to sell the franchise in the territory approved by the agreement. The master franchisee becomes the franchisor in his region.

We emphasize once again: in the last two versions of the franchise agreement, a right and an obligation are provided.

If the franchisee does not maintain the contractual pace of development and expansion, this is punishable by: termination of the contract, penalties, transfer of exclusive rights to another businessman, etc.

In addition, there are the following types franchises:

• free. The franchisee receives the right to use the brand, but his actions are not controlled by the owner of the rights.
• Silver. In this case, the company opens a branch, organizes its activities, and only after that sells the right of temporary use.
• Golden. Transfer of monopoly rights to conduct business under the brand name of the right holder in a particular region. The buyer of a gold franchise decides for himself how he will use the name and develop the business.
• Import-substituting. This scheme is somewhat reminiscent of plagiarism. A businessman works in the country under the name of a well-known company, while not deducting royalties to it. What is it like " Adidas" And " Abibas”, The names are similar and there is nothing to complain about. However, this business has nothing to do with the original brand.

The Civil Code requires that every commercial concession agreement be registered with Rospatent. In this case, the franchisor must first register his trademark and technologies there. Theoretically, it is possible that McDonald's will miss the re-registration period, then any entrepreneur can apply for it.

Almost every industry has successful, proven business practices. We sell franchises of retail stores, beauty salons, fast food restaurants, factories and many others. For convenience, we have compiled some popular brands in a table - a mini-catalogue of franchises.

In the pursuit of profit, it is important to strive not only for momentary benefits. Ray Kroc, the founder of the McDonald's network mentioned more than once said:

"If I had a brick every time I said 'quality, service, cleanliness', I think I would cross the Atlantic Ocean."

What should be in the contract

A typical franchise agreement consists of several hundred pages. About, what is a franchise in simple words It's hard to explain, and even harder to do on paper. Therefore, without legal support, a businessman will not be able to figure out the intricacies. For example, the Civil Code contains the following rules:

• The duration of the contract does not have to be specified. But if it is, it is necessary to agree on the condition of prolongation.
• Only legal entities and individual entrepreneurs have the right to be parties to the contract, individuals this is not available.
• It is impossible to conclude a contract in any other form than in writing.
• The franchisor is obliged to teach his own technologies not only to the franchisee, but also to his employees.
• The franchise buyer must comply with all requirements of the seller to ensure the quality of the product or service.

The contract also specifies control technologies, whether it is mystery shopping, passing exams or visits of controllers.

How not to fall for the bait

Upon entering the franchisor's website, the visitor blossoms with delight. And the investments are minimal, and the support is comprehensive, they promise bonuses and lure with gifts. It's all hosted on a single page site.

When it comes to signing a contract, a businessman finds a document in front of him on a hundred pages. This is not an exaggeration, this is exactly the size of a standard contract. Moreover, it was drawn up taking into account the interests of the franchisor. How the franchise works and how it protects the franchisee, he must take care of himself. Even if at first glance the offer seems tempting, you should only believe the contract written on paper.

When concluding a contract, it is worth attracting a lawyer, his payment will pay off many times over with subsequent savings. If you make additions to standard contract with McDonald's it will be difficult, then you can easily insist on the cancellation or change of several clauses in an agreement with a lesser-known company.

Questions to ask a franchisor:

• When did the franchisor start selling the franchise? If the franchise is young, and the results of the franchisee's activities are not yet clear, this is another reason to think.
• Is the business financially successful? Having seen the results of activities over the past three years, you can roughly orient yourself in the prospects of your own business.
• How many franchisees have closed? Percentage successes and failures is not a theory of probability, but specific numbers that give an idea of ​​the chances.
• What kind of support is provided? Premises valuation, staff training, payback calculation, advertising and promotion in a new region? What does the franchisee get besides the brand?

The short list of questions can and should be supplemented by questions that arise during the study of the proposal. And most importantly: business is not a statue carved in stone, everything flows and changes.

Pros and cons of a franchise

A business system that has been tested by time and tested more than once in different regions is the undeniable and main advantage of buying a franchise. Fill bumps on your own or copy the experience of a successfully developing and competing company?

Arthur Bartlett, founder Century 21 Real Estate: "The franchise has become the savior of free enterprise, it has given small businesses a chance to survive..."

Yes, the franchising business option does reduce the risk of failure. Not as much as the brochures of interested companies promise, but still. US statistics confirm that 90% of independent business projects fail within the first three years.

Compete with big business individual entrepreneur- difficult task. A recognizable brand, special conditions for cooperation are an obvious plus that a franchise gives.

“The world does not stand still. We don't deserve to be where we are if we're not ahead of the curve and taking the necessary steps to stay competitive." Fred DeLuca, founder subway.

The franchisor provides well-established business technologies that are constantly being improved: advertising, marketing, administrative support. Lack of knowledge and experience is not a problem - the franchisor provides training for the franchisee.

In many cases, the franchisee receives exclusive territorial rights, a monopoly on the allocated area. Of course, under the brand name of the franchisor. If the brand is successful and recognizable, it will “crush” competitors in the niche.

• The sad fact is that some franchises achieve an 80% failure rate, while others experience almost no failure.

Before signing an agreement, you need to carefully read the statistics: how many projects are successful, how many have closed. Talking to franchise owners is not the last thing; you don’t need to spare money and time for this item. Openingfranchise may seem in a simple way run your own business. But some factors are not evident, and the idea is so tempting that the potential franchisee steps on the rake of unsuccessful predecessors.

Franchising is not a flexible way of doing business. Features of a particular area, which are well seen and understood by the franchisee, are often not obvious to the franchisor. Make changes to the business format, offer additional discounts to customers, choose a product in accordance with the tastes of buyers ( in retail store, for example) is not always possible.

If an agreement is signed obliging the franchisee to expand the network, the business is obliged to work well and bring profit to the franchisor. Failure to comply with the agreements is a reason for the franchisor to refuse cooperation without compensating the franchisee for any damage.

Instead of output

You can already understand what a franchise is in simple words - this is an agreement that allows one of the parties (the franchisee) to sell a product or service using a trademark, marketing strategies and technology of the second party - the franchisor.

• Franchising is a progressive business method that benefits both parties.

In time " catch a jet" And " collect cream» on a new trend - the dream of any entrepreneur. However, here it is better to do the opposite. You need to look for a franchise that has already managed to establish itself. Steady growth, a low percentage of "burned out" franchisees - the only indicators that need to be guided.

Marriott, founder of a hotel chain: “My life experience shows that success is never final. We make decisions on the way to the final result.”

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