How to open a business franchise and not go crazy: a comprehensive guide

Russian franchise market is at a stage of rapid development - it confirmsDeductible reduced in price A number of studies. The model has many advantages for start-ups, but there are also cons. When a company seeks to "pack" and to sell his franchise as soon as possible, on both sides there problem: the franchisee gets the "raw" and not a viable product, and the franchisor - a bad reputation and litigation claims. Tell us what you should pay attention to avoid unpleasant surprises.

issue price

The costs to the franchise made up of two payments - the starting lump-sum payment and royalties. The first is paid immediately at the conclusion of the contract, and the second lists the franchisee with a certain frequency (eg, once a month, once every six months or once a year). The most popular Russian franchises lump-sum payment does not exceed 500 thousand rubles. For example, in the "Dodo Pizza" it is 350 thousand rubles. Open

score can be even cheaper: accordingPizza, beer, Pawnshop: how much are the most popular franchises RBC, the entry fee for the popular outlets - up to 150 thousand rubles.

Royalties are calculated based on different models - the percentage or fixed. In the first case, the franchisor franchisee pays a part of the turnover - from 1 to 10%. In the second - the amount of payment is known in advance and the franchisee remains stable. It is worth to note: not always a fixed model means that the amount of contributions will remain unchanged. Sometimes franchisors gradually increase the size of the fixed payments as franchisees' rises to his feet. " In other cases, the amount of the royalties is already included in the cost of goods, which implements franchisees.

Due to the lump-sum payment and royalties buyer acquires the right to use the brand franchisor, its internal tools and know-how, methods of business management and employees. However, the care of the registration of legal entities, payment of taxes, insurance and pension contributions borne by the franchisee.

The cost of buying a franchise - it's not all on the creation of business expenses. final the amount of costs It is made up of many factors: the cost of repairs and lease of premises, equipment, training and recruitment. Open shop known franchises canPizza, beer, Pawnshop: how much are the most popular franchises for 1.5-3 million rubles, and when it comes to the regions - and for the 400-700 thousand rubles. For pizzerias and service stations will be more than the initial investment - from 6 to 16 million rubles.

The size of the start-up costs depend on the business and the payback period. For example, according to some estimatesHow do you know that the franchise - a fake, With investments of 10-20 million rubles franchise pays a minimum of two years. However, to accurately assess the deadline for leaving in the plus one can not only start-up capital: for different networks, this period may differ 1.5-2 times with an equal amount of investment.

Signs that the franchise should buy

The secret of a successful franchise - balance running a business model and a package of additional services for the franchisee.

1. Will help you choose the room

Reliable franchisor will try to advance to conduct research and to offer you a point of high traffic, and then will monitor attendance, comparing with those of other regions or institutions network in the same area.

A good franchisor to offer the franchisee to install special analytical module - counter visitors to independently monitor the conversion of visitors to customers and to react quickly if the this business index decreases.

2. You are guaranteed to carry out training for franchise management

Operational processes, human resources, accounting, usage of additional services and IT-platforms, legal issues, compliance with all kinds of rules - ideally all aspects necessary for the understanding and management of a particular business, should be disclosed to you on start.

3. Together with the franchise, you will gain additional services package

These services may include remote surveillance required for HoReCa segment and for medical institutions"Anti-terrorist surveillance" has become mandatory for all medorganizatsy, The online broadcast from the kitchen for caterers, online storefronts. Also, modern analytical modules based on computer vision and cloud technologies can be used: for example, face recognition to prevent theft and the development of loyalty programs, IT-solutions for the monitoring of employees and taking into account working hours, safety and quality control.

4. You will provide marketing support

Reliable franchise almost always engaged in the promotion of the network as a whole - for that list franchisee advertising contributions to the head office. Smaller companies help partners promote their own terms: for example, a medical organization provides LabQuestWhat you need to know to get the most profit from the medical franchise franchisee marketing tools. Owners points receive help in the online promotion, public relations, development loyalty programs and interaction with doctors.

5. You will provide financial documentation in advance and demonstrate an open business metrics

Here, everything is easy. All that comes to money and financial obligations, as well as the financial history of the franchisor requires a thoughtful examination. For it is not a sin to bring a professional accountant or auditor, if a potential franchisee the right knowledge is not enough.

Common mistakes franchisees

Here are a few major mistakes that can be costly budding entrepreneur.

1. Do not take into account the peculiarities of the market

No business is not separate from the surrounding area, people and infrastructure. If franchisees do not take into account the environment in which it will develop the company, even a successful proposal franchisor may not work. One example - the caseFranchise: how to open a school run running school I Love Supersport: its branch in Yekaterinburg works for four years and makes a profit, and in Magnitogorsk closed eighteen months later. One of the main reasons for the failure - lack of suitable places in the city for running, which is why this sport has not collected a sufficient number of fans.

2. Overestimate the help of the franchisor

Franchisees may not be aware of the intricacies of the business and counts on the help of partners - sometimes laying on this aid have too high expectations. For example, a beginner entrepreneur has no experience in marketing and he does not know about the need to invest in attraction of clients in low season. The franchisor, to help where it counts, does not provide the necessary instructions to increase the number of visitors and the business runs the risk of burn.

3. Buy unproven franchise

Analysts believe franchising marketHow do you know that the franchise - a fakeThat in the Russian half of proposals for the sale of franchises - fake. This means that companies provide partners incorrect information about the franchise costs and market conditions.

In some cases, disinformation concerns all the same "aid" from the franchisor. This is a problem a few years ago facedFranchise trick: how franchising rate may result in collapse Company franchisees Mail Boxes Etc., which is engaged in the delivery of documents and small parcels, as well as the graphic arts industry. When buying a franchise organization promised to provide the necessary materials for the opening of the office on favorable terms. It turned out that the "beneficial" price several times higher than the market, and the head office does not help the franchisee in the promotion and sales.

legal niceties

Under Russian law, the franchisor and the franchisee can conclude one of two types of agreement - franchise or license.

Franchise agreement means"The Civil Code of the Russian Federation (Part Two)" from 26.1.1996 number 14-FZ (ed. from 07.29.2018) (amended. and ext., joined. in force from 12.30.2018) the transfer of a number of exclusive rights of the copyright owner to the user (from the franchisor to the franchisee). Mandatory part of the agreement - the right to trademark.

The transition to the franchisee the right to use in the business activities of the trademark and the system of exclusive rights registered in Rospatent - without this step, in the case of conflict between the parties, the court will not be able to apply the regulations franchising. This is important primarily for the franchisor - in the absence of registration, the court may require the return of all payments the use of the brand and the company's intellectual property, even if the franchisee has applied these services and got through them income.

The franchise agreements are specified and other rights that the franchisor transmits, for example in the use of databases, computer programs, the legal owner of inventions and so on. The document can be described limits for the parties: the prohibition on competition franchisees with the franchisor, pricing policy, the obligation to make contributions to the advertising campaign. Such an agreement may be concluded only between legal entities or individual entrepreneurs.

License agreement selected when the franchisor does not want to transfer the franchisee the right to use a trademark (or not registered trade mark). This agreement allows"The Civil Code of the Russian Federation (Part Four)" from 18.12.2006 number 230-FZ (ed. from 27.12.2018) franchise buyers to use any intellectual property: the franchisor's IT system, methodology of his work, logo. Parties to a license agreement can not only be legal entities and individual entrepreneurs, but also individuals.

The main difference between a license agreement on the concession agreement: The second involves close cooperation between the parties, such as service quality control by the franchisor. License agreement gives the franchisee the opportunity to use a specific design of the franchisor. Because of this lack of its instrument can complementWhat to look for when buying a franchise Agreement for the supply and delivery of services, in which more prescribed duties of the franchisor for the sale of goods or consulting business partners.

Regardless of the type of contract, before signing the franchisee and the franchisor should discuss in detail the conditions for cooperation. Here's what you should pay attention to:

• Time and territory - where and how long the franchisee can operate on franchise conditions. These moments in the contract it is important to register as much detail. It should be clarified, and the exclusive right to the franchisee to work in a particular region - without this item, the franchisor can sell a franchise in this area to someone else.
• Methods for transmitting information - we are talking about the process of document exchange. Vague wording such as "in any available form" is not appropriate - without specifying a particular carrier side of the contract data can not prove that send or receive a franchise package.
• The procedure for termination of the contract. Cancel the franchise agreement the franchisee may unilaterally - it is usually sufficient advance warning of the franchisor. However, the procedure should be discussed before signing the contract. It may be that the franchisee for acceptance of the conditions will be required to prevent the release of the business for the year. During this time, the entrepreneur must pay royalties - even if the franchise has brought only losses.
• Duties of the parties. Choice of suppliers, pricing, training of staff and promotion of the franchisee - any obligations of the seller and the buyer of the franchise should be known and understood prior to entering into the transaction.

Franchise - it's not just buying ready "recipe for success" and conducting joint business with the franchisor. So the next step for the franchise is to create a ground for communication.

Building relationships with partner

As in any other case, in franchising important relationship of trust between the parties and the general goals. Usually, at the beginning of the franchisor gives the partner a number of documents: brand book describing the brand and its style, business-book with tips on management handbook and with the requirements of the staff.

A further part of the franchisor in the business depends on the conditions of the contract. Sometimes the franchise seller only conveys the right to know-how and helps to choose a place for a point, but does not teach the finer points of the business buyer. But even in this case, the franchisee can usually count on a consultation with the head office in the event of difficulties - especially when the parties entered into the agreement of commercial concession, which involves the development aid project.

successful franchise is usually not limited consultations and collection of reports on the achievements of "wards": companies create shared centers staff training, so that the quality of goods and services throughout the network was the same. For example, workingHow to make a successful franchise from scratch Network male hairdressers Chop-Chop, which has opened its own academy for the training of artists from different regions of Russia. No exception and the major chains: Subway trains before the opening of the restaurantArtist sandwiches: how many Subway franchise brings owners, managers and staff of the new point.

Franchisors follow the work of the franchisee and after training. The network "Dablbi" every cafe checked once a week, and a separate specialist is responsible for the professional development of all barista. Some franchises develop relations not only between the main office and the individual points, but and among franchisees. The coffee chain Red Cup their experiences and best practices sharing all entrepreneurs and the best ideas can be implemented at any point of sale.

It is important to understand that the success of a business largely depends on the franchisee. Franchisors often report that their partners' support programs and additional services are only effective tool for conducting business, but not a "pill for all ills". Wrong to assume that buying a franchise, you get a business that already everything is so regulated, that will simply be to make profits. It does not happen.

Checklist for future franchisees

• Pay attention to the ratio of payments to the franchisor. Terms of cooperation can provide a high lump-sum payment and no royalties. Such a model is justified for shops where the franchisee royalty payments instead of purchases from the franchisor goods for sale. In other cases, the lack of regular payments may mean that the company wants to sell more franchises and is not worried about the success of individual branches.
• Ask about the age and experience of the company. Offer may be "raw" underdeveloped. Count on competent support and assistance in this situation do not have to franchisees.
• Check the company's representation in official sources. This advice applies to offers to purchase the franchise of large international brands. Unscrupulous sellers can register a similar trademark and pretend the Russian subsidiary of the company, which is not really represented in the Russian Federation. Not to buy a fake, it is desirable to obtain confirmation of the legitimacy of the organization (sometimes it is enough to verify the data representation at website brand, or send a request to the head office).
• Ask, whether the company is developing its own institutions or retail outlets. If the franchisor has ceased to open new units and only sells the franchise, it may indicate the ineffectiveness of its business model.
• Ask what you will get from the franchisor. If the company sells only the sign, the benefits of cooperation with it you will not get. Find out what tools, discounts on partner programs, the development and management provides the franchisor as will be further communication with the parent company and who will be responsible for staff training and monitoring of their work.
• Carefully check the contract. It is important to pay attention to the validity of the franchise, controlled territory, obligations of the parties, ways of information transfer and cancellation of the transaction.
• Meet other franchisee network. Prior to entering into a contract to help other entrepreneurs to understand whether you should get involved in the matter, and after - to share experience and its own work.