Profitable franchise. Catalog of the most profitable franchises in Russia: the most profitable and fastest payback

Every entrepreneur who wants to open a business with an idea that has already proven itself in the market faces a choice: start on their own from scratch or. This choice is more difficult than it seems because the money invested in the business is at stake. Some say that a franchise is a waste of money. Others call her the best way grow rich. We will tell you whether a franchise business is profitable and how to make the right decision.

Advantages of a franchise

The essence of franchising brings it to the fore: perfect cooperation between seller and buyer, when the first expands the business with almost no investment, and the second receives entrepreneurial experience, support and profit. Statistics are also on the side of the franchise, because most newcomers are forced to close in the first year. In franchising, this percentage is much lower. Let's figure out why it is profitable to work as a franchise:

1. By purchasing a franchise, you automatically receive a well-promoted brand, recognizable and with a clean reputation.
2. The franchisor invests in advertising himself. You can save on this item of income and time on building the company’s image, winning over customers - you can immediately move on to obtaining a stable profit.
3. Support and training from the franchisor - you won’t get this if you start alone. The seller can take care of the franchisee, increasing his knowledge, skills and abilities through courses, master classes, training materials, and individual consultations.
4. Consulting. When purchasing a franchise, the partner will help with solving specific issues: providing initial information about the market segment, advice on choosing premises and personnel, and marketing consultations.
5. You know the amount you will need to run your business; everything has already been calculated for you. This way, you risk less by taking on too much money or stumbling with too little.
6. Individual entrepreneurs are a dime a dozen, counterparties will not single out someone, which cannot be said about franchisors. They usually have established contacts with suppliers and have big discounts, so profitable terms you will get it too.
7. The franchisee shares responsibility with the franchisor. It is stress that can prevent a beginner from approaching the task calmly and confidently. He does not feel alone in difficult business situations and therefore the franchise becomes more competitive.
8. Often the franchisor delineates the territory so as not to create competition between its own franchisees. The scope of the expansion is specified in the contract.

When purchasing a franchise, the partner will help with solving specific issues: providing initial information about the market segment, advice on choosing premises and personnel, and marketing consultations.

As a result, the picture is rosy: a franchise is easy money. You get the opportunity to develop, immediately rising to the same level as the parent company. But in no case should you draw conclusions without knowing about the shortcomings of the franchise.

Disadvantages of a franchise

Franchising is not a dominant system in business, which means it is far from ideal. The disadvantages are related to the fact that a franchisee with a business that seems to belong to him does not feel independent. And the return on investment for a franchise depends on many factors. You may encounter obstacles not only in growing your franchise, but also in growing yourself as an entrepreneur.

The most common problem for franchisees is... The start itself is lump sum- costs a lot. Especially if you wanted privileges, so you won’t be able to fit into franchising from scratch. Add to this a constant royalty payment, which can be a constant amount or a tangible percentage of profits. This results in serious expenses, which are your responsibility to pay, even if you go broke.

Unfortunately, in Russia there is no legislation on franchising that would regulate its activities from start to finish, and the franchisee usually suffers from this. You should take care of yours at the stage of signing the contract by turning to a specialist for help. Do not forget about the strong legal support of the franchisor.

Another trouble that franchisees face is limited independence on all fronts. I have already developed a business development strategy and are working on it, so it will not be possible to leave this framework. It is important to the franchisor that you maintain the brand image. These standards may relate to the quality of service or the choice of premises and can be very high - such that the chance of failure becomes real. Even a sensible remark or an effective idea from an entrepreneur can be rejected only because a franchise is a well-oiled mechanism that does not tolerate deviations from the standard.

The disadvantages of a franchise are associated with risks that depend on the choice of the parent company. Franchising has become so popular that even yesterday's newcomers are selling it. Sometimes this works, but more often it leads to bankruptcy of both the franchisor and all its franchisees.

Even at this stage, your task is to study the company you are interested in, make sure that it really has successful experience, recognizable brand and good reputation. Moreover, the collapse of the parent company with unconvincing competence for franchising will lead to the closure of everyone who worked with it.

And finally, another common problem: the franchisee may eventually find suppliers willing to work on favorable terms for him, but the franchisor has a requirement to purchase only from him or his suppliers. The rules of free competition do not work.

Drawing conclusions

Of course, the conclusion is different for everyone, and it depends on the specifics of the business, the expectations of the entrepreneur, and the conditions of the franchisor. It would be a good idea to study your future partner's numbers (if you have access to them) to find out the effectiveness of franchising. Remember that buying a franchise means investing. Therefore, follow the same rules. What profit will the money invested in the franchise bring? What will be the payback period of the franchise? Will I do a better job with this experience? Approach your decision with full responsibility, then you will get a truly profitable system that works for you.

If we talk about the most profitable franchises, it is worth noting that many of the franchises presented in 2018 on the franchise market are in the top best offers During a long time. A number of these franchisors have a much larger number of enterprises opened on the basis of franchising partnerships than their own branches.

Among the most profitable franchises of 2018 you can find franchises related to the launch and development of enterprises in such areas as catering and clothing trade, region medical services, hairdressing business and much more. Businessmen interested in small and medium-sized businesses can take advantage of offers from both domestic famous companies, as well as world famous brands.

We present to your attention a list of profitable franchises in 2018. These franchising offerings are well suited to a wide range of entrepreneurs. These franchises will help you start your own business with minimal labor costs. You can contact each franchisor from the list directly through the contact form.

List of profitable franchises in 2018

Franchise Contrast

The franchise is a project to open a hookah club. The company providing the opportunity for franchising cooperation has passed the certification procedure and is engaged in legal activities. Enterprises opened under the Contrast franchise differ high level profitability. That is why this franchise can rightfully be considered one of the most profitable.

Total investment required to purchase a franchise: 400 thousand rubles. The franchise agreement does not provide for the payment of royalties. Company representatives provide assistance in selecting a location to open a club. Personnel training is provided. Minimum project payback period: five months.

Coffee shop franchise CoffeSpace

This profitable franchise is an offer from a company specializing in coffee business. The number of fans of the brand today amounts to tens of thousands. Success is due to a number of factors, including the so-called provocativeness of design solutions.

The amount of investment for establishing an enterprise is 300 thousand rubles. There is no royalty payment in the franchise agreement. The minimum amount of push contribution is 179 thousand rubles. There is no royalty payment in the terms of the agreement. The territory for opening a coffee shop is selected with the help of company specialists. Preference is given to universities, shopping and business centers. The minimum payback period for investments made is three months.

Franchise of the branded children's clothing store Artel

The company, which introduced the Artel franchise to the Russian franchising market in 2016, is engaged in the sale of high-quality, practical and fashionable clothing for children. This franchise is considered by many experts to be one of the most profitable as of 2018.

The franchisee gets the opportunity to use a full package of standards for document flow and goods accounting. Regular training and testing are conducted for staff. The investment amount for purchasing a franchise is 800 thousand rubles. The annual royalty payment is 25 thousand rubles annually. There is no lump sum payment in the terms of the contract. Requirements for room area: 60 – 100 square meters. The period during which the investment pays off: from five months to one and a half years.

Other profitable franchise options

Below we have selected for you several profitable franchises that may be of interest to you. Please check them out.

Any person who starts his own business by buying a franchise is primarily interested in profit, because it is for this that many people start such a business. With a franchise, you can get benefits faster and with fewer losses, but only if you choose the right franchising project. In order to weed out unsuitable options already at the selection stage, you should understand the concept of franchise payback.

What is the return on return on a franchise that can be considered good?

The payback of a franchise is the period during which it will return the funds invested in it and begin to make a profit. This parameter is measured in days, months, quarters and most often in years. Even taking into account that there is famous brand and there is a ready-made work program, it cannot be said that the project will instantly bring profit and pay off - everything takes time. Of course, in the case of a franchise, these terms are reduced, and the franchisee has much less risk.

Important! The payback period, which is often indicated by the franchisor when selling its package, is quite arbitrary, because they are often presented as ideal, that is, the best possible. And if in city “A” a specific project reached the payback point in 6 months, then it is not a fact that in city “B” there will be such a result.

Factors that influence payback:

1. Carefulness market research before launch. It is better to do this personally, although the franchisor often provides similar statistics. But it is worth remembering that franchises with quick payback often affordable and the franchisor’s main task is not to develop the network, but to get quick income, so he will paint the most attractive picture.
2. The presence of competitors - the more of them, the longer the payback period, because the consumer has a choice.
3. Business scale- small investments pay off faster, but if the cost of the franchise package is measured in millions, then you will have to wait.
4. Serious approach. You shouldn’t think that having bought a franchise you can rest on your laurels and things will go on their own. You will have to work carefully and painstakingly; if this is not done, the payback period will be very stretched out. Ultimately, the cost recovery point may not be reached at all.
5. Support from the franchisor. His business, know-how too, if the franchisor does not support and help in running the business, which also sometimes happens, then it will not be possible to achieve success. The field is new and unknown - it’s almost the same as starting a business from scratch.
6. Seasonality – this applies to seasonal franchises. For example – selling ice cream, sunglasses, beer trays, etc. Here the demand is wave-like, depending on the season.
7. Franchisor's mistakes. It happens that the franchise package does not take into account all the costs of the franchisee. For example, renting premises for a store is included as a cost, but connecting communications and coordinating them with regulatory authorities is not. That is, the volume of initial investments increases, which means the payback period.

IN general view we can say that the return on investment of a franchise depends on its cost. Thus, a coffee shop like “Coffee to go” can pay for itself in 3-6 months, since the costs of opening such an outlet are small. If we talk about franchising a pharmacy, it will take more than a year, the same goes for clothing stores, large restaurants, including fast food.

Important! Too short payback periods indicated by the franchisor should be alarming, because for a business, including a franchise, this period is rarely less than 6-12 months.

What types of franchises are considered the most profitable?

The payback period for a franchise also depends on the business direction of the brand that offers it. But this is not the only important thing. A striking example The payback period for points that sell coffee to go is 6-12 months, with an initial investment of 70 thousand rubles. And such a very popular franchise as McDonald's with initial investments amounting to millions of dollars sets terms of 12 months. And the most interesting thing is that the payback really comes quickly, since the network, despite high prices, popular with consumers.

You can judge which franchises pay off in our country by looking at the statistics of the franchisees’ areas of activity. So in first place - retail. Such a franchise requires considerable expenses, but our people also love to buy and buy a lot of food, clothes, shoes, furniture, household appliances, the list can be continued endlessly. That is, there is demand, which means that the franchisee can count on receiving profits, and therefore reaching the breakeven point.

The next position is fast food (one of the most famous and demanding franchises in this segment is McDonald's - https://biznesogoliks.ru/franshiza-makdonalds/). The culture of eating out is increasingly absorbing Russia. Moreover, they want to eat nourishing, tasty and cheap. This is actually the key to the success of a fast food franchise.

The next position is occupied by fitness centers, beauty salons and tour operators. The startup costs are considerable, but every year there are more and more people who want to pump up (lose excess weight), get a haircut/get themselves in order and go on vacation. In addition, these areas of work are not seasonal, and this allows you to count on profits all year round.

Conclusion

Franchise payback is an important parameter. If it is not specified or does not suit the potential franchisee, it is not worth starting such a business. Important indicator the profitability of the franchise, but not the only one - this should also not be forgotten.

The section presents inexpensive franchises with investments up to 500,000 rubles. The payback period for most of them does not exceed 6 months. The profitability of such a business may not be too high; it corresponds to the level of initial costs. However, this is a real practical option that works best:

• for the accumulation of initial capital for the purpose of subsequent transition to more profitable business models, but with a high entry threshold;
• for beginners to get started, because it allows them to gain the necessary experience and connections, to “get comfortable” in the business environment without the risk of major losses;
• for those who do not plan to go high competitive market, but expects to have a small stable income, for example, at retirement age.

What to look for when choosing a franchise

You should not focus solely on the cost of the lump-sum payment and the payback period; it is advisable to analyze:

• the form, the amount of the entry fee - the entry fee is too high, especially with low royalties, suggesting that the company is interested in extracting high income from the sale of the franchise, and is of little concern about the future fate of the partner;
• what composition the franchise package includes - it should be reflected as fully as possible in the contract, with all the details and restrictions imposed; clearly defined areas of responsibility;
• what is the basis for calculating the amount of regular payments - from profit or from sales revenue; the latter option is usually more expensive for a novice entrepreneur;
• what guarantees are provided in terms of exclusivity of business in the region - you are unlikely to be satisfied if a couple of neighbors, inspired by your example, open points 500 meters from the store;
• the amount of support received from the franchisor - the number and completeness of training seminars, training and incentive systems, marketing programs for franchisees; automation tools;
• assigning a personal manager-consultant to newcomers - communication with one person is easier and more effective, communication is more efficient, and issues that arise are resolved faster;
• the history of the seller’s relationship with existing partners - it is advisable to ask their opinion “live”, not limiting yourself to reading reviews on the Internet;
• the number of franchise outlets that closed during the period of operation - this information, of course, will not be provided directly. But you can use indirect data: from regional websites, shopping center data, store location maps.

Why is a franchise business more profitable than a startup?

Franchising as a way to start a business from scratch is becoming increasingly popular. Market experts and entrepreneurs with rare unanimity consider this direction to be the most promising. The risk of bankruptcy for franchisees is significantly lower than for any other small business. According to IFA (international association): of 100% of new enterprises opened independently, 85% close within 5 years; opened as part of franchising - 14%. Purchasing a franchise by a novice entrepreneur looks like a completely reasonable and justified step.

See, compare and choose inexpensive franchises for small businesses, perhaps this is where you will find a profitable business for yourself.