Franchise applies to all areas of the service industry. With the offer to buy a franchise more and more foreign companies enter the Russian market. Franchises are packages of rights, technologies, equipment, services and so on that are sold by large companies.
In the Russian market, franchises are actively developing in tourism, real estate, employment, educational activities.
The business format franchise is the most complete. Along with all the above rights, a large company transfers business skills to a small businessman. A small company is becoming a part of a large corporation. A large enterprise may be a raw material enterprise, a manufacturer, a wholesaler or a retailer, a service company. All small businesses must work in the same style and respect the interests of the organization. The business format franchising system makes it possible to include various business directions. Using a franchise system with a high reputation for business gives a huge opportunity to expand the activities of both the firm itself (in this case, the organization will be a franchisor) and companies will be given an excellent opportunity to use this reputation to expand their business.
Franchising is becoming increasingly popular among Russian companies. Approximately 150 companies are now ready to sell franchises. In addition, franchisors from Western Europe actively participate in the Russian market both in large international companies and small ones.
Regardless of all this, the number of franchises sold does not increase annually. The reason is that there is a difference between the quality provided by the seller of the franchise and the expectation of the investor (small enterprise). So, what do Russian investors expect from a franchise?
Unlike the West, Russia has more franchises for those industries that are at the stage of stagnation, rather than those that belong to the "warming up" stage. This is explained by the specification of Russian franchise buyers. Franchise buyers are not unemployed, or veterans who have received bank loans from American and European banks, but entrepreneurs who already have one or more successful companies. In fact, in our country, to buy a franchise and create a suitable business you need to have investments of at least 1.5 million rubles. It is clear that getting a loan for this amount in our country is a very big risk.
Russian small companies are buying technology, not a name. This can be confirmed, for example, by a storm of franchise sales by the travel agency Putevochka. This project started to be developed immediately on the basis of a franchise. Since the announcement of the franchise sales for this project, the agency has received at least 40 calls per week from potential franchise investors. The reasons are simple: along with the franchise, the investors were given the opportunity to create a turnkey business, to provide marketing and accounting support for the company's activities, and to increase the agent's commission. In these conditions, franchisees will not consider the unwinding of the brand.
In our country, it is possible to build a franchise business even where there is no main element - a trademark. The problem is that it takes at least a year to obtain the legal rights of this asset in Russia. Usually in Russia, the following scheme is used: registration agencies are sent the necessary documents (from this moment on, the applicant organization can challenge the use of trademarks by others), and contracts are concluded with investors, under which it uses the name, design, trademarks, and so on, as long as these elements are at the stage of registration. Franchise contract - is signed after the completion of registration.
For most investors, a franchise is one of the best ways to invest in an object that is already a ready-made business.
Investment activity in modern Russia is a heterogeneous set of public relations in the field of finance, macroeconomics, law, labor and social relations, which, of course, require streamlining and systematization, development of a unified federal investment strategy and implementation of a set of tactical measures designed to contribute to the qualitative improvement of the investment climate in Russia.
One of the most effective areas of investment in Russia is trade in the automotive business. In the next chapter, we considered the effectiveness of investments in the enterprise, which is engaged in the dismantling and sale of automotive spare parts.