Features of opening a franchise for doing business. How to open a franchise business Who opened the franchise

Having caught fire with the idea of creating his own business and having looked through hundreds of seemingly profitable franchise offers, the aspiring entrepreneur with fire in his eyes runs to his future partner-mentor to buy a franchise. And it’s good if the partner really turns out to be a mentor, and the franchise offer is really profitable. What if not?

After reading this article, you will learn:

How to avoid the 12 most common mistakes of new franchisees,
How to avoid scammers
What you need to know when choosing a franchise
How to negotiate with a franchisor
and much more.

So, you have decided to buy a franchise. How to avoid making the wrong choice?

Beware of fakes!

To begin with, it is worth familiarizing yourself with what types of franchises there are, by selling which companies are engaged in, one might say, fraud. There are three types.

Firstly, dummy franchise. Enterprising citizens create a trademark and copy all the attributes of some popular brand - from corporate colors to the terms of the franchise package. As a rule, such a trademark is not even registered. An inexperienced franchisee takes the bait and buys a useless franchise.

Apart from external similarity, such a franchise has nothing in common with a popular brand.

It has no commercial value. The main goal of creating a dummy franchise is to quickly make a profit, to push the franchisee to buy a franchise, the price of which is based on false popularity and fame. Only after signing the contract does an inexperienced entrepreneur feel all the consequences of a thoughtless purchase.

The unfortunate franchisee pays for the mistake not only with his money, having bought a dummy, but also with his reputation. The owner of the original brand, having discovered a fake, can sue, both for the buyer and the seller of the franchise. By using a stolen idea and delivering a low-quality product, the franchisee will forever lose the trust of customers and partners.

There are plenty of examples of dummy franchises. So, a well-known pseudo-franchise « ZaraZara" at a certain point, it had more outlets in Russia than the original Zara. Or "Eurosvyaz"- a prototype of Euroset, too lazy to even come up with a different logo.

Naturally, the fight against such dummies and plagiarists is carried out by the copyright holders of real brands. For example, recently the company "PrintInstwood" I encountered a similar problem when I discovered my double. The owners of the original product learned about the pseudo-franchise from their partner-franchisee and found out that the owners of this dummy, pretending to be potential franchisees, stole the contract form, image and concept of the machines from PrintInstvud.

“We developed the model ourselves, appearance of our own machines and, accordingly, we produce them ourselves. In order to agree with the franchisee on the appearance of the machine, we send him a visualization - a model of what it will look like. On the pseudo-franchise website we saw excerpts directly from our presentation. Now we are working to ensure that the scammers’ site is closed,” a representative of the PrintInstvud company shared information.

The second enemy of a potential franchisee is fly-by-night franchise. Very beautifully described benefits, supported by convincing, but unverified facts. A wonderful tale that is told to franchisees to get them to pay the entry fee. Literally a week after he gives the money, the buyer will never see or hear from his “franchisor” again.

Such companies and franchises are created with the goal of making money and disappearing.

So we urge you to pay attention to the date of registration of the company and the date of opening of the franchise. If both dates are doubtfully recent, then no matter what they say or promise, it is better to ignore such proposals.

And the third, but not the most terrible enemy is "raw franchises". A young company with a promising business, which, in principle, is doing well, decides to open a franchise. However, she has neither experience, nor well-developed business schemes, nor the ability to provide proper support to franchisees. That is, in this kind of franchises, again, there is no thing for which people actually buy franchise offers.

“Unfortunately, there are more and more such companies lately. Nowadays there is a kind of “franchise fashion”, i.e. Many entrepreneurs, even if they have only recently started a business and do not yet understand it very well, quickly try to create a franchise and start selling it. It is clear that in this case, there is no question of any quality of materials and transfer of real experience, verified and proven technologies. This devalues the very concept of “franchise”, - a company representative shared his opinion Maxim Seryakov.

A “raw franchise” has two possible development paths. The first is that the business will close in a couple of years, bringing both the franchisor and its franchisees only losses and a damaged reputation. In the second case, together they will find ways out of difficult situations, testing the functionality of the business model through errors. However, in this case, a logical question arises: why pay money for a franchise if you have to go through all the same stages as when starting a business on your own?

Think with your own head

A very serious mistake of a novice franchisee is excessive trust in the franchisor’s forecasts. Large companies, as a rule, have franchising departments involved in sales. It is clear that their goal, no matter what, is to sell their franchise. We do not want to say that you cannot trust anyone and that everyone is deceiving. But given the risks that the franchise buyer takes, he should be more critical of the promises of the franchisor company.

It would not be amiss for a partner to independently analyze the market in the territory of the proposed business location. If you are going to buy a franchise for a small city, then it may well turn out that a product that was in great demand in the center of the capital will be completely unclaimed in your case. It is also worth looking for nearby competitors; perhaps there will be so many of them that there is simply no point in opening a business in this area and in this place.

Plan your budget

Franchisees need to calculate their costs at the initial stage and acquire a cash cushion in the amount at least 1/3 from the initial investment. When starting a business, there are always unexpected but necessary expenses and hidden fees. Therefore, we recommend that you discuss the budget in detail with your franchisor, since in franchise presentations companies usually indicate the average amount of required investment.

In turn, the company "Sweetberry" tries to identify such misconceptions among franchisees at the first consultation.

“At the very beginning of negotiations we give a detailed budget, detailed information on opening costs, on running a business for the first six months after opening and for each future season. We have no hidden fees; the calculations directly for the implementation of the project launch are published on the website.” - a company representative shared her experience Anastasia Salova.

You need to understand that in addition to the initial investment for the launch, you will have monthly expenses for salaries, rent and other costs that are not compensated by income. On average, for three to six months, you will only invest in the business, working in the red, until you reach the break-even point. Only after this can you begin your journey to the next milestone of the business plan - the payback point**.

*Break-even point is the sales volume at which revenue covers expenses. Essentially, you break even. The company will make a profit only when you start selling additional units of production.

**The payback point is the moment when the amount of profit earned covers the initial investment.

Get everything in writing

You can agree on anything with the franchisor, but all your agreements must be recorded in writing and signed by both parties. This is a smart way of doing things. Because relationships between partners are built on documents, on what is recorded in them. Use at least e-mail correspondence for ease of communication and control over your obligations. The franchisor's promises, not backed up by anything other than his word of honor, can cost you dearly, since there will be nothing to refer to.

Read what you sign

The new partner needs to study the entire package of documents in detail. As already mentioned, this is what the franchisee’s entire business will be built on. Pay attention to the name of the contract itself.

In Russia, franchising as a type of business is not legally established and is regulated primarily by a commercial concession agreement or a license agreement.

Be careful about the term of the contract, it must be at least three years, as well as to the territory in which the franchisee can use the granted rights. It is important to check the company’s documents on the right to own intellectual property, request copies of the trademark registration certificate and independently check its number on the Rospatent website.

If you don’t understand documents at all, then it’s better not to save money and hire a professional lawyer! By saving on professionals, you can go broke.

No need to chase a brand

Buying a franchise of a popular brand does not give you a 100% guarantee of success. Of course, well-known companies, as a rule, take a responsible approach to opening a franchise and really help their franchisees develop successful business. However, there were also situations exactly the opposite, when partners went bankrupt after purchasing a popular franchise.

Communicate more!

You should not limit yourself to communicating with only one representative of the company, especially if his main task is to convince you to buy a franchise. Talk directly to your manager, as well as to the people you will be working with. Your task is to get as complete a picture as possible about the franchise and the business you will be involved in.

To successfully operate a franchise, at a minimum, you need to learn as much as possible about the company itself.

“Decide on the company’s business area, find out what method of selling its products the franchisor offers, pay attention to the type of goods and services, the advantages of franchising, whether the company is a manufacturer, what is the quality of the products and the geography of distribution of franchised enterprises,” a company representative shares his opinion "NANOPROTECH" Sergey Selyakov.

Be sure to find contacts of other franchisees of this company, including former ones. We recommend coming and seeing how an existing business operates under the chosen franchise, communicating with the franchisee, and hearing first-hand feedback about the company that will become your franchisor.

If you are going to purchase a franchise that is not exclusive in your region, then it is worth finding out about the location of your closest fellow competitors and agreeing on the sphere of influence.

If a franchisor hides the location and contacts of its franchisees or any other information from a potential partner, it is clearly not worth doing business with them.

Ask the right questions

Talk to your franchisor and find out not just how many franchises this company has opened, but also how many of them have closed and why. It would also be nice to know how many businesses are reopening, that is, are franchisees limited to opening only one location? Such information will be very valuable to you. And again, let’s make a reservation: if the franchisor does not want to provide you with complete information, you do not need to start a business with him. You don't want to buy a pig in a poke, do you?

“Transparency and purity of relations are priorities for our company, therefore during negotiations, we do not try to hide information about isolated cases of closed franchise stores. On the contrary, we talk about what caused the failures, what mistakes were made on the part of the franchisee. We are convinced that the key to the successful development of the franchising system is, first of all, open and honest relationships,” the company explained its position

Don't Avoid Learning

Franchisees should adequately assess their strengths and knowledge. People come to the decision to run a franchise business different people, With different experiences. Some have no business practice at all, some have experience in management positions, and some already have their own enterprises, opened from scratch.

No matter how much experience you have in business, training from a franchisor is necessary!

He will explain how to start a franchise business from scratch in an area that is completely new to you. After all, every industry and every company has its own characteristics, which you may not even be aware of.

Education important element when purchasing a franchise! An experienced franchisor should provide you with knowledge, proven working methods and business building schemes. Learning and developing, constantly improving, is necessary for every entrepreneur who intends to build profitable business for many years. Otherwise it is impossible to achieve success.

“When we invite franchisees to listen to our recommendations, we do not question their life and professional experience. We pay attention to the complexities, possible difficulties, specific aspects of our business model, thus trying to make it easier for our partners to make their own path in business,” notes the co-owner and founder of the TM franchise “Orange Elephant” Zhanna Asatryan.“As a rule, very creative franchisees begin to experiment from the first month, believing that after working for 2-3 months, they understand better than the franchisor what, when and in what ratio they need to sell. Such experiences always end in failure. A franchise enterprise rarely survives a year and closes with a bunch of debts to suppliers. We usually part with such would-be franchisees mutually dissatisfied with each other.”

Don't expect that everything will be done for you

There is one big myth in the world of franchising that when purchasing a franchise, a person does not need to try and invest in work. However, a franchise business is the same kind of business in which you need to work and think all the time - first of all, the franchisee himself. Yes, the franchisor provides proven practices and helps the new partner avoid many mistakes, but the direct owner manages his business first and foremost.

Together with the franchisor, the partner must strive to optimize the business, eliminate errors and develop. Of course, to begin with, it is important to set up the work of your enterprise and learn a lot of new information. However, you cannot stop there and, together with your mentor, you need to move forward, look for new opportunities and eliminate ineffective mechanisms.

“The Personal Solution company, even at the stage of selling a franchise, tries to convey to people that our business (like everyone else) requires a lot of time and effort. We try to immediately prepare people for the fact that they will have to work hard, they will have to study and master a huge amount of information, they will have to work on themselves and rebuild their way of thinking,” says a representative of the Personal Resolution company. Maxim Seryakov.“When communicating with partners, we also try to develop in them independence, an entrepreneurial approach and teach them to think for themselves before taking action. Because the success of any business primarily depends on the entrepreneur himself, and even the most detailed description operating technologies cannot cover all possible situations that a franchisee may encounter.”

Choose the best for your team

Company employees are the face of your business. And a very serious mistake of franchisees is the lack of due attention to their selection and training. “Many entrepreneurs may underestimate the importance of staff. However, competent, qualified personnel are at least 60% of the revenue and success of an enterprise,” comments the head of franchising for a chain of optical stores. "Happy Look" Olesya Ivanova.

The quality of your employees’ work directly affects the company’s reputation and profit level. It is not for nothing that most franchisors have a separate system for selecting and training their staff.

“At the Happy Look company, all franchisee personnel undergo mandatory two-week training at the company’s main office. Such training has several stages and is completely free,” says Olesya Ivanova.

However, employee travel can be very expensive and inconvenient because it takes people away from their jobs. However, franchisors have found a solution to this problem. Yes, company "Express office" Conducts the entire course online. For this purpose in electronic form interactive diagrams and methodological manuals, there is a corporate chat that brings together company employees from the head office and official representative offices in the regions.

“We have a training center that helps staff become highly qualified professionals. Thanks to him, every new employee has an excellent understanding of his work almost from the first days and further improves his knowledge and skills,” a representative of the office furniture retail chain shared the staff training scheme Dmitry Sokolov.

Customers interact directly with your employees and judge your business based on the quality of their work. It is not without reason that managers are strongly advised to become a so-called secret shopper at their own enterprise. Based on your personal feelings, you will be able to understand what kind of opinion your visitors and partners have about you.

Don't Treat the Franchise as a Hobby

A franchise business is not something that can only be done in free time. This is work and constant work. Therefore, you should not think that this is a type of passive income, and you can transfer all worries into the hands of managers. As soon as you step away from business, the business will disappear. So if you are not ready to devote all your time to developing your business, you should not purchase a franchise.

So that you can always do right choice when purchasing a franchise offer, the BIBOSS business portal annually publishes a collection of the best offers for business in Russia.

A comprehensive right to use a trademark or brand name, technology, business practices, and other forms of intellectual property that one company sells to another for the purpose of expanding its network. The franchise price consists of a lump sum (basic payment) and royalties (monthly payments).

According to the rules of franchising, the franchisor company (selling the right) undertakes to research the market in your locality and make a conclusion whether the business will be successful for the franchisee (the party purchasing the right). However, many companies (especially if there is a large lump-sum payment in the contract), trying to quickly get their profits, may deliberately not notify you of low demand for products or services. Therefore, before you buy a franchise, you must independently study the product you are interested in and conduct an analysis of the market and target audience.

What are the types of franchises?

Based on the type of activity, there are three main groups of franchises:

Production- production of products according to company standards and under its brand. With this form of cooperation, the franchisor must provide you with all technological sequences and provide a list of suppliers of raw materials and equipment to equip the production complex.
Trade- sale of branded goods produced by partners identified by the franchisor. With such cooperation, the franchisor determines from whom you will purchase the goods and at what cost to sell them, chooses where the store will be located and what size it should be.
Services- provision of services under the company brand. The franchisor must provide you with instructions on the procedure and conditions for the provision of services, as well as train hired personnel.

According to the form of implementation, a franchise can be of two types:

Straight- transfer of the right to open one or more representative offices in the region. Such franchises do not require large investments and make it easy to enter the market.
Master franchise- transfer of exclusive rights to all representative offices in the region. By purchasing such a franchise, you will be protected from the possibility that other companies will open in your region using a similar model.

Depending on the terms of the contract, the following types of franchises are also distinguished:

Standard- the franchisor controls all stages of the company’s activities and does not allow deviations from the standards it has adopted. This format is suitable for beginning entrepreneurs because it allows you to avoid many mistakes.
Free- the rules of operation of the franchisee's enterprise are established conditionally. This franchise is suitable for experienced investors whose main goal is to quickly enter the market.
With replacement- technologies and work methods are established by the franchisor, but you can choose suppliers yourself. This format is convenient for manufacturing enterprises in remote regions.
Ready-made company- the franchisor opens a representative office, fully dealing with organizational issues, and then sells or leases it to the franchisee with the subsequent payment of royalties. This model requires a high initial investment in the business, but it is also the simplest method that begins to generate profits in the shortest possible time.

How to choose the right franchise

Once you have decided on the direction and type of goods or services, you should begin searching for suitable offers. To do this, you can conduct independent market research or use online catalogs (franch.biz, franshiza.ru, beboss.ru, greens-idea.com). To choose a reliable franchise, the following instructions will be useful to you:

When choosing a direction, pay attention to the cost of the franchise. The latter includes a lump sum fee and royalties, which are paid for the right to use the trademark and business model, but do not imply the costs of equipment, rent and the first purchase of goods or raw materials. This means that an inexpensive franchise business for the production of goods may require much more investment than trade or services with a large lump sum, since it requires additional investments.
When choosing a specific product or service, research the competition in your area. If it is high, even the most reliable franchise may not be a profitable investment.
Select several offers in your area and compare the conditions.
Study the history of each company and personally visit existing representative offices in your and neighboring regions. If the company is very young (it must be at least 5 years old) and does not have its own divisions, most likely you have an unreliable partner.
Analyze reviews of customers who buy goods or services produced by selected franchises. The product or service must be real and in demand on the market.
Negotiate with entrepreneurs from neighboring regions (to avoid conflicts of interest, it is better not to contact representatives in your region) operating under this franchise. Find out the advantages and disadvantages of the business.
Assess the level of investment in your own business. If you are offered to start a business under a free franchise, in most cases this is a standard offer to supply goods for sale.

Step 2. Conclusion of an agreement with the franchisor

After the initial selection of proposals, before concluding an agreement, you need to study the features of the transaction in more detail. This requires a preliminary meeting with representatives of the franchisor company and obtaining legal advice on the proposed agreement.

How to conduct preliminary negotiations

The first meeting with the franchisor is usually held in the office or in a coworking center if the company does not have a representative office in your region. If you are invited to a cafe, most likely you are dealing with a fictitious or unprofitable franchise. An exception may be when the meeting is scheduled at a cafe whose franchise you are purchasing.

If you are a new entrepreneur, if possible, bring an experienced business consultant with you to the meeting. You should ask the franchisor for the following points:

Availability and timing of copyright registration for a trademark. There are often cases when the franchisor sells the rights to a brand that is not registered or the ownership rights expire before the end of the contract with the franchisee.
Amount and payment schedule. You must be provided with details of the lump sum and royalties in national currency. If amounts are given in convertible currencies, the exchange rate must be stated. Royalties can be a fixed amount or expressed as a percentage. Sometimes royalties are tied to the volume of the enterprise (for example, to the area of the sales floor).
Organizational expenses. To attract franchisees, many companies make a minimal lump sum contribution or do not include it at all in the contract. On the other hand, it very often turns out that in this case the franchisees are charged with the costs of creating design projects for outlets (stores, offices), training staff, and obtaining permits.
Choosing a business location. When going to a meeting with the franchisor, you can pre-select several locations where you would like to locate your business, but your future partner may himself offer you cost-effective options that you cannot refuse if the deal is concluded.
Support level. Ideally, the franchisor should provide you with comprehensive assistance and advice until the business reaches the desired level. But many companies provide virtually no support during the formation of a business, which can be a decisive factor for beginners.
Level of control. You need to know how strict the rules are for the franchise you are interested in, and also determine the boundaries of making your own decisions (what you can change and what you cannot). This applies to the procurement of equipment, raw materials, goods, as well as pricing and overall strategy.

Franchising is considered one of the most successful forms of entrepreneurship, in which commercial activity is based on the acquisition of rights to use a trademark and a ready-made business plan.

What does it take to open a franchise?

Opening a franchise requires some funding. To start your own business, you will need start-up capital to cover the current costs of concluding a contract and making initial contributions. possible using own funds, government subsidy or bank loan.

Interesting fact: many banks are willing to help entrepreneurs open a franchise business and provide the necessary cash. Lending to franchise systems has the lowest degree of risk and is more secure than providing other loans to small businesses.

To open a franchise business, you will first need to select the legal form of the enterprise and register with the Federal Tax Service.

The next step is to make a one-time lump sum contribution. This amount covers the cost of using the trademark or brand for a pre-agreed period.

The lump sum fee consists of the current costs that the franchisor will incur when providing and registering a franchise for the second party.

The cost of the lump sum payment will depend on:

degree of support and concept of the franchising system;
brand fame and popularity;
conducting marketing research and developing a current business strategy;
rental and arrangement of premises.

Additionally, the signed agreement will indicate the amount and terms of regular periodic payment for the use of intellectual property. These payments are designated “royalties” and can be paid according to two conceptual schemes:

as a percentage of gross profit;
in the form of a fixed amount.

How much does it cost to open a franchise?

The cost of purchasing such a project will directly depend on the brand’s popularity and its position in the market. Of the entire list of things that can be opened as a franchise, the most popular and profitable are fast food establishments and fashion chain stores.

The lump sum amount for average franchises starts from 150,000 rubles. For comparison, the cost of an Adidas franchise is $20,000, and the popular StarBucks coffee chain costs $150,000. Each franchisor sets its own financial level, based on the possible profit of the franchisee and the economic effect for the owner of the brand.

Is it worth opening a franchise?

Franchising, as a form of commercial activity, is the most profitable and in an efficient way running a small business. Both parties to the agreement receive favorable conditions for their development. The franchisor, as the owner of his own brand, gains the opportunity to open new markets and attract new customers to his products.

Meanwhile, the franchisee receives a ready-made operating scheme for starting a business, as well as active support from the franchisor and assistance in resolving strategically important issues.

To avoid mistakes when opening a franchise, we recommend watching the following video:

Even a 15-year-old schoolboy knows that business is a thing that requires money. It doesn’t matter what we’re talking about – a chain of restaurant complexes or a stationary car wash. If in the first case we need a lot of money to buy/build a room, equip it, hire staff, purchase goods, then in the second, at a minimum, we will need a brush, a washcloth, water and detergents. Agree, in both cases you will need so-called start-up capital.

Forget about the word “free” if you decide to dive headfirst into the franchising business. This does not happen from the word “in general.” Even if they’ve already given you a contract and sweetly promised that you will be able to buy a franchise without investment, the first thing you should do in such a situation is to dive in headfirst. No, not into a business, but into a commercial concession agreement. Yes, yes, on the very piece of paper that the girl manager so insistently offers you.

Let's look at what kind of beast this is, a “franchise without investment,” and under what conditions they can offer you a free business. Let's go.

“Free franchise”: free and sweet vinegar?

Let's imagine a certain abstract Nicholas. For example, a guy spent his entire adult life hanging out in the garage next to his favorite relative, a car mechanic, raving about engines and memorizing the internal structure of any car. And so, Nikolai grew up, but the desire to deal with cars did not disappear, but on the contrary, it grew.

Having seen that a well-known car repair service brand was selling franchises in the regions, Nikolai decided not to spend the next 20 years raising the necessary amount to open a car repair shop, but simply turned his head. He collected various data for a month, studied the market and finally drew up a good business plan for opening his workshop. Since Nikolai was also smart, he did not bother investors with his plan, but turned directly to the franchisor. Nikolay understood that a service station operating under a well-known brand practically guaranteed him profit and a flow of customers.

If you need help in selecting a profitable franchise or auditing the chosen one, contact me, I have extensive experience in franchising, I will be happy to help!

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After considering the proposal, the franchisor, interested in developing his brand, decided to meet Nikolai halfway. Thus, the guy became the owner of a branded service station without investing a penny into his business. BUT! In the next 2 years, Nikolay will work off the funds invested by the franchisor.

This is the best option for “free cheese”. It is important to understand that it will not work without investments at all. In any case, someone will invest funds - and if it is not you, then it will be your franchisor or a third party, to whom you will then remain in debt.

The above story is of a fairytale/mythological nature. IN real life Such events are extremely rare. Franchisors usually prefer the “money in the morning, chairs in the evening” model. Few people will want to take the risk of investing in a dark horse. But still, such a development of events is possible.

Common options for “free” franchises

Typically, brand owners who are interested in developing their business offer the following franchise options without investment (you can find a lot of such offers on the Internet):

0 lump sum and certain % royalty;
the presence of royalties and a lump sum payment, which is provided in installments;
the lump sum fee is symbolic or absent, and royalties are not paid in the first 2-4 months. Thus, the franchisor gives the franchisee time to get the business back on its feet.

Why can a franchise never be 100% free?

You can right now cross out all of the above with franchises found on the Internet “without lump-sum fees and royalties.” Yes, yes, those exist too! For example, the Button Blue franchise (sale of children's clothing) or Dobrota.ru (sale of medical and cosmetic products). Franchisors, surprisingly, do not require any fees at all.

BUT! They openly state that the franchisee will have to take a number of steps to prepare the business:

search for premises;
conclusion of a lease agreement;
repair and finishing work indoors;
equipment;
purchase of goods;
registration of necessary licenses;
preparation of documents.

Do you think it is possible to do all this without investment? That is why such franchisors, when selling their business models, set the amounts that will be required as starting capital. Providing funds for all this is 100% the responsibility of the franchisee.

5 types of franchise work without investment

If you don’t have any money at all, but even in your dreams you see yourself as an entrepreneur, this section will be for you. In fact, there are 5 options to open a franchise business without investment.

Investments are everything to us.

Have you suddenly realized that selling ice cream according to old French recipes is your childhood dream and your life’s work? Great! In this case, look for an investor.

What will you need? Just a smart business plan. Your task is to convince a potential investor that by investing in your franchise business, he will soon buy a private jet.

Build trust.

If you have a desire to work under a certain franchise, convince the franchisor to trust you. Take a closer look at his business model, delve into all the internal processes, and show your sincere interest in his business. Experienced franchisors, as a rule, understand that a poor entrepreneur who is ready to work 24 hours a day to develop his business will quickly begin to prosper and make a profit, while even a super profitable startup will wither away for an indifferent millionaire.

Become a implementer.

We are talking about franchises for sale. In fact, the franchisor gives you a product for a certain amount, and your task is to sell it. This especially works in sales and services. That is, you get a ready-made store or other outlet filled with goods.

What do you need to know? Typically, goods in such business models are issued in installments. For example, for six months. If you managed to implement everything in 6 months, the flag is in your hands. If not completely, please, pay the franchisor for the remaining products. List of franchises without investment for implementation:

TOM FARR;
Medicine;
Fabretti.

By entering names in search engines, you will easily find out what the above-mentioned franchisors offer and under what conditions. This option is perfect for entrepreneurs who really know how to sell.

Dive into online business.

Despite public censure and discussion, online business is actually capable of generating good income. Again, this option is only suitable for those who know how or are eager to sell. Contact any branded network company and propose your candidacy. Rest assured, online businessmen will be happy to provide you with the necessary goods. Then everything depends on you. This type can be classified as reverse franchising, where the franchisor provides full service to the business.

No lump sum fees.

Many companies selling franchises do not require lump-sum payments, and also provide deferments for royalty payments. This option is ideal if the franchisor also provides the goods in installments. In this case, investments will be either minimal or not required at all.

Ready-made franchise business without investment: what does the Internet offer?

The main idea of franchising is that the franchisee is given the business processes of doing business with a certain product or service, as well as training, the opportunity to use the company’s brand, etc. Many franchises only hide behind the phrase “no investment,” but in fact, unforeseen expenses will fall on your shoulders , which will slow down your income. Business options without initial investment:

"eCoswey". An international company from Malaysia that provides you with an online store. An offline point is provided to you for a sufficiently large turnover in the business - the company pays for the rent of the premises, design, public utilities, carries out the purchase of goods and equipment. Your task is to develop the business. And forget about investments.
"NLinternational". An international company from Russia that provides an online store, product, marketing materials, training, business processes, delivery and service also on the shoulders of the parent company. When the turnover in a business reaches a certain level, you can open your own offline store, but before that you need to register as an individual entrepreneur.

What’s most interesting is that finding such franchising offers now is not a problem. The 21st century opens up really good business opportunities even for those who have no money, but have a great desire to develop their business.

Take a franchise without investment: pitfalls

Unfortunately, every barrel of honey has its own fly in the ointment. The most common “nuances” of franchises without investments:

legal "dead loop". Franchisors are often very clever when it comes to offering someone a franchise for free. Often the contract contains overly strict conditions that are almost impossible to implement.

For example, you may be offered to sell children's clothing, and the franchisor provides the goods in installments. According to the terms of the contract, goods are provided for the amount of 1,000,000 rubles, and you must sell for 500,000 rubles in the first month. Those who understand trading know that this is unrealistic.

Advice: before contacting “free cheese”, contact experts and talk to the owners of similar stores. It is quite possible that the franchisor sets impossible conditions for you, thereby dooming you to bankruptcy and endless fines.

self-confidence. Nothing ruins entrepreneurs more than excessive pride and self-confidence. Even if you are 200% sure that your entire city has dreamed of tasting oriental-inspired sweets all its life, still, do not agree to sign such a franchise until you have received full-fledged research of your market from an expert point of view.

Advice: contact marketers and statistical centers. Now, when you have statistical studies, analyses, and the results of opinion polls in your hands, then make a decision. At least you can soberly assess the situation and understand your chances of success.

Current niches of profitable franchises

On the Internet you can easily find all kinds of catalogs that can be sorted into lists of profitable, unprofitable franchises, without investments, with millions of investments, and so on. I would just like to describe here what directions at the moment enjoy relevance:

Everything for children. As you know, they don’t skimp on the “flowers of life.” Even in times of crisis, this remains one of the most profitable areas. This should include the sale of clothing, toys, installation of playrooms in large shopping centers, children's cafes and much more.
Repair services. This is one of the most profitable niches. You can install heated floors, decorate rooms, redecorate offices, install suspended ceilings, and so on. In any case, if you are good at this, you will not go wrong.
Franchise of an online store (both without investments and with investments). The advantage of this business model is that it covers almost all Russian cities, not limited to just your city or region. You can sell almost anything. But! Experts still recommend concentrating on youth needs - vapes, branded clothing, hookahs, products for gadgets, and so on.
IT technologies. Development of websites, applications, and software is a very interesting and promising field. If you are good at programming codes, congratulations, you have a great opportunity to get rich in the very near future!