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Franchising advantages

When people begin to think about opening of a business, many believe that the key to success may lie in buying a franchise. Buying a franchise can help you quickly create your own business without starting from nothing. Nowadays Russia is facing a franchising boom. Russian businesses and entrepreneurs turn to franchising models. This market also has quite a good potential for overseas players.

Due to globalisation, Russia will have to effectively use resources and improve its competitive environment. The country is intensively promoting international economic links and establishing conditions to attract foreign investments.

When people begin to think about opening of a business, many believe that the key to success may lie in buying a franchise. Buying a franchise can help you quickly create your own business without starting from nothing. Nowadays Russia is facing a franchising boom. Russian businesses and entrepreneurs turn to franchising models. This market also has quite a good potential for overseas players.

The following advantages of franchising can be named:

Your business will be based on a tested idea.It is possible to prove the success of other franchises before starting your own;

Buying a franchise, you get ready to successful concept. Statistics show that franchises have a much greater chance of success than people who start an independent business;

  • You can use well-established brands and trademarks.Whenever the franchisor who owns a franchise initiates advertising or promotion you benefit from that as well.

  • You can enjoy support provided by the franchisor, e.g. training, initial support while creating the business, ongoing advice and so on;

  • Normally you have exclusive rights in your area as the franchisor will not sell any other franchise there;

  • Business financing could be easier.Banks are more eager to give a loan to buy a franchise with a proven reputation;

  • You may communicate with other franchisees in the same network, share ideas and benefit from their support;

  • There are established relationships with suppliers.

Doing business in Russia is often associated with certain risks, and it is usually recommended to have a reliable partner. Franchising can be a key to establishing effective partnerships. It is the right time to seek for franchises that face real challenges in Russia. Many international brands are highly popular in this country.

Most franchising companies in Russia mainly represent the food and restaurant sectors, clothing, footwear and accessories shops. It is quite likely that other areas will find niches in the Russian economy. Russia has such well-known fast food brands as McDonald's, Pizza Hut, Sbarro, Subway and others. They have operated their chains in Russia for a long time enjoying the great potential of the market. There are four regions in Russia for most franchisors, the Central part, the South Russian part, the North-West and Siberia.

Both local and overseas franchisers successfully work in the Russia and see good perspectives for expansion. There will emerge large international companies working on a franchising basis. Moreover favourable conditions are creates in Russia to give impetus to creating new small and medium enterprises. SMEs are likely to enjoy serious political support from the Russian authorities. Franchising is a perfect way to promote SMEs.

International companies that try to protect their capital in the context of inflation and unstable economy have started to look for such ways as franchising. “In today's marketplace challenging, franchising in Russia as well as in Central and Eastern Europe offers opportunities for growth of substantial revenue by expanding distribution of your goods and services worldwide.”

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