Examples of the largest franchisors

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Franchising occupies an important place in the financial structure of Russia. The presence of many branches of large corporations operating under the franchise business model speaks to the veracity of this fact. Let us give examples:

McDonald's

Acquiring a franchise from the American taiyuan mobile phone numbers database McDonald's chain is usually done by high-income entrepreneurs or experienced businessmen with their own company. Obtaining a license will cost $45,000, but the franchisee must have at least $950,000 to successfully start the company.

Subway

Entrepreneurs running small and medium businesses can buy a business under a franchise of the Subway restaurant chain. Today, there are about 700 establishments operating in Russia. The distinctive feature of the franchisor is the provision of favorable conditions for partners: low initial and subsequent contributions. The initial contribution is $7,500.

Subway Franchise

Burger King

Burger King LLC is engaged in similar activities as McDonald's. Currently, 90% of establishments operate in a franchise format. When purchasing a license, an initial payment of 21 million rubles is required, as well as additional expenses of 2 million rubles. The payback period is two years.


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Risks of franchising
The success of a franchise business can vary, depending on the market situation, the realism of your resource assessment, and the terms of the contract. However, there are details that are worth considering in advance. To a certain extent, these factors can be considered force majeure, but with a skillful approach, their risk can often be mitigated.

Unpredictability of the franchise owner's actions. The owner may cease operations, leave the Russian market, refuse to renew the contract or change the terms for the worse.

Market instability. A business model that has shown good results in the center of a capital city may not be suitable for successful development in the provinces or residential areas.

The "trick" of a franchise business contract. An experienced owner can quietly introduce conditions into the contract that are unfavorable for the franchisee. To determine such conditions, you should study the contract with an entrepreneur or lawyer who has long been well versed in this.

Competition for the market among franchisees . If the franchisor does not divide territories for partners, competitors may appear, and you will have to compete for the client base.

Difficult contract terms. Franchisees may undervalue complex requirements for premises, working conditions, or employee qualifications, which can make it difficult to find them.

If these factors do not scare you, then let's continue.