The most popular business franchise. New Franchises for Small Businesses: Benefits, Choices, and How It Works
We have compiled the latest ranking of the best franchises in the world. We have selected the top 6 international brands that offer the most profitable franchise programs. The evaluation criteria were good profitability indicators, the size of investments, the total number of franchisees, the growth rate of the network and the popularity of products around the world.
Dairy Queen
Dairy Queen is an American fast food chain that operates under seven distinct lines with separate brands. DQ establishments serve ice cream, hamburgers, grilled burgers, frozen yogurts, milkshakes, juices, drinks. The company has been in existence since 1940 and is a pioneer in the field of food franchises. Dairy Queen grew from a dozen locations in 1941 to a hundred in 1947, and by 1950 had over 1,400 outlets.
On the world map: Dairy Queen is represented by 6,700 fast food restaurants in 30 countries, including 4,400 business partners in the United States.
Franchise features:
- cost from $1.100.000;
- variety of restaurant types and good franchise packages;
- obtaining a franchise is broken down into 5 simple steps;
- 65 years of experience in franchising.
Dairy Queen is constantly diversifying the menu, although she began with the preparation and sale of ice cream. One of DQ's top investors is Warren Buffett, who likes to pose for photographers with signature ice cream. Dairy Queen is the only major eatery that doesn't have an exclusive drinks deal - most outlets serve Pepsi-Cola products, but there are places where Coca-Cola is poured to customers.
Jimmy John's Gourmet Sandwiches
Jimmy John's is a chain of American burger restaurants. Unlike top competitors, it does not claim that its products are the best on the market. Jimmy John's quite admits that their burgers are good, but the taste can be inferior to sandwiches from other eateries. The company keeps the menu practically unchanged, does not arrange high-profile promotions. Jimmy John's feature in the speed of service - a 20-centimeter burger is made in 30 seconds. The top Illinois-based facility ranks highly in the rankings because it increased its franchisee base by 350 locations in the last year. Over the past three years, the increase was 48.8%.
The leading places are occupied by retail trade in non-food products and the service sector.
Increasing percentage service franchises provided to businesses (for example, accounting, legal, staff leasing, etc.). Among the companies providing services to individuals, centers for the development and organization of leisure for children, as well as medical organizations, come to the fore.
Continues its development and franchise in retail. Depending on the economic situation, the demand for certain enterprises fluctuates. Fixed-price stores, as well as drugstores and grocery stores with low prices, are gaining popularity. In crisis conditions, clothing and footwear stores usually experience some decline in customer flow and, consequently, profits.
restaurant business Since the crisis is also experiencing a drop in demand and popularity among potential franchisees. However, franchises are still sold and bought - the choice is more often made in favor of inexpensive cafes, often from the fast food sector or to-go coffee houses, investments in which do not exceed 6-7 million rubles.
The most unpopular areas for a franchise are media and manufacturing sector. Next, we will consider franchises of well-known brands.
TOP 10 most popular franchises in Russia
Genetic Test
The genetic test is one of the new trends in the field of education, which allows you to find out everything about a person’s abilities by a fingerprint in a few minutes. The company was based on many years of research and study of available materials on the relationship between achievements and human fingerprints.
Franchisees in personal account receives all the materials needed to get started. The main emphasis of the company is on the desire to help a person in his self-development.
Franchise year: 2011
Lump sum: missing
Royalty: from 100 rubles (from 1 client)
Initial investment: from 50.000 - 60.000 rubles
Payback: from 1 month
What is included in the franchise package: Provision of all necessary information materials, including step-by-step instruction how to do business.
TELE2
Cellular communication operator, the main region of development is Russia. The company provides services to both private and corporate clients. Tele2 guarantees a high level of service and the provision of quality services at low prices.
One of the most successful franchises in Russia can be purchased by both a large retailer and an entrepreneur with no experience in business development in the field of communications.
Franchise year: 2003
Lump sum: up to 200.000 rubles
Royalty: 4%
Initial investment: from 500.000 rubles
15 m2
Payback: from 1 - 1.5 years
What is included in the franchise package: Providing a ready-made business project, which includes all the nuances of starting and developing a business. Consulting on all issues.
peppy day
The coffee-to-go network is already present in more than 45 cities of Russia and the CIS countries. The attractiveness of the franchise lies in the profitability of the business, in addition, the opening of such a coffee shop is great idea for a beginner startup or for those who want to do something else besides business.
Number of enterprises: over 120
Lump sum: 100.000 rubles
Royalty: missing
Initial investment: from 170.000 rubles
: 2 m2
payback: from 3 months
What is included in the franchise package: Providing informational materials for the full launch of the coffee shop. Provision of technical equipment. Low prices for a constant supply of coffee and other ingredients, assistance in finding suppliers. Communication both with the company itself and with other franchisees to exchange experience.
INVITRO
An independent laboratory, one of largest companies Russia and CIS countries in the field of commercial laboratory services. 2 years after the launch of the franchise, the company entered the list of "TOP - 5 best franchises in Russia", and also won an award in this area for the first time.
Over 10 years of work, more than 250 franchisees appeared, more than half of them have opened and are developing more than one point. INVITRO is a well-known laboratory with which we cooperate as private medical institutions, as well as government.
Founding year of the franchise: 2006
Number of enterprises: more than 800
lump sum from: from 300.000 - 700.000 rubles
Royalty: 28.000 rubles a year after the start of work
Initial investment: 2 - 2.5 million rubles
Minimum room area: from 60 m2,
Payback: from 1.5 - 2 years
What is included in the franchise package: The right to work on behalf of the brand. A personal curator who at any time will answer questions that arise in the process of opening and developing a business. Provision of consumables. Free shipping biomaterials from the franchisee to the main laboratory.
BEGEMOTIC
Children's toy store, the network of which has been developing in Russia for 8 years. The range includes products of both own brands and global manufacturers.
The company is the winner of numerous awards, including for the development of the franchise network.
Founding year of the franchise: 2008
Number of enterprises: more than 900
Lump sum: 117.000 rubles
Royalty: missing
Initial investment: from 1.000.000 rubles
Minimum room area: from 50 m2; the franchisor recommends opening a 100 m2 store
payback: from 8 months
What is included in the franchise package: Development of a business project depending on the individual characteristics of the opening region. Assistance in placing an order for equipment and providing discounts. Advertising consultations, assistance in the development of layouts. Training in the technology of doing this type of business with the provision of materials.
Milavitsa
A network of women's underwear stores founded in 1992 in Belarus. Quality products are in the middle price segment, the range is wide and varied, often changing - all this ensures constant consumer demand.
In addition to Russia and Belarus, the company is developing in more than 20 countries of the world, including Ukraine, the CIS, the Baltic countries, etc.
Year of foundation: 1992
Number of enterprises: over 600 in 23 countries
Lump sum: missing
Royalty: missing
Initial investment: from 2.3 million rubles
Minimum room area: from 40 - 50 m2
Payback: from 1 - 1.5 years
What is included in the franchise package: Evaluation of the premises, provision of a free design project. Consultation on opening and development of the store. Partial reimbursement of the cost of opening a store and window dressing. Staff training, provision of training materials.
Personal solution
A company providing services of handymen, loaders, merchandisers, etc.
Franchise not required big investments and special skills. When opening a business in a city with a population of over 40 thousand people, with large trading floors and manufacturing enterprises, franchisees can count on a quick payback and high profits within a few months after launch.
Franchise year: 2007
Number of enterprises: more than 100 in 5 countries
Lump sum: 179.000 rubles
Royalty: 7000 rubles
Initial investment: from 194.000 rubles
payback: from 2 – 5 months
What is included in the franchise package: A step-by-step explanation of starting and growing a business based on the history of the company. Training at the head office. Client search consulting. Providing technical support. Representation on the site and the right to work on behalf of the brand.
subway
One of the leaders in the field of catering and fast food. Subway is the largest franchise chain in the world for fast food restaurants.
The assortment includes fresh sandwiches, rolls, salads, the ingredients for which are chosen by the visitor. The order is prepared immediately in front of the buyer. The products used for cooking are always fresh and of high quality, as Subway presents fast food that is as harmless to the body as possible.
Founding year of the franchise: 2004
Number of enterprises in Russia: about 700
Lump sum: 7.5 thousand $
Royalty: 8% + advertising fee 3.5% of turnover
Initial investment: 65 - 150 thousand $
Minimum room area: from 40 m2
payback: from 1 year
What is included in the franchise package: Assistance in choosing the location of the restaurant. Full staff training in a special center in St. Petersburg. Assistance in ordering equipment, providing a design and plan for a cafe to be opened. Assistance in finding product suppliers, their approval. Full consulting on all business issues. Advertising support.
CARDZAVOD
One of largest enterprises in Russia for the production of plastic cards was founded in 2008. When making cards, a special software, which is able to create unique personalized barcodes depending on the wishes of the customer.
Cardzavod products are quite relevant, since more than 90% of companies use plastic cards in one way or another. Due to the large volumes of production, product prices are relatively low and remain competitive even with franchisee mark-ups.
The franchise work scheme is as follows: the franchisee is looking for customers in his city and sends an order to the main enterprise that produces plastic cards with specified parameters. After that, the franchisee only has to receive the order by mail and give it to the client.
By gradually building up a customer base, after a few months you can get big profits, including passive ones (from “old” customers).
Franchise year: 2008
Number of enterprises: more than 100 representatives
Lump sum: 15.000 rubles
Royalty: missing
Initial investment: 15.000 rubles
payback: from 1 month
The franchisor provides ready-made presentations to demonstrate the assortment to the client and examples of completed orders, as well as examples of contracts and letters for working with clients. If necessary, a designer is provided to develop the design of the cards. Full information consulting is carried out before and during work.
33 penguins
A network of ice cream parlors with enterprises in Russia, Belarus, Kazakhstan and Mongolia. Within 10 years, more than 1,500 cafes of various formats have been opened under the franchise in 170 cities of different countries.
Natural ice cream "33 penguins" belongs to the premium class. The assortment includes more than 50 types of ice cream prepared according to unique recipes (Italian or self-developed), as well as various additives (nut toppings, berry-fruit sauces) and drinks.
Ice cream is served in a cone, a glass or in a special thermal package, in which it does not melt for 1-1.5 hours.
33 Penguins franchisees offer two cafes for opening under a franchise at once for a faster return on investment and business development.
Franchise year: 2006
Number of enterprises: over 1500
Lump sum: 370.000 rubles
Royalty: absent (even if several outlets are opened by one franchisee)
Initial investment: from 1.000.000 rubles
Minimum room area: from 2 - 12 m2
payback: from 6 months
The franchisor provides a ready-made business project, including free cafe design and equipment. The package also includes ingredients for the preparation of ice cream and related products and their delivery, menu.
The franchisee guarantees the provision of marketing assistance, advice on various issues of business organization and ensuring the implementation of the company's corporate standards.
What other franchises are in great demand in Russia?
Other popular franchises
| Name | Sphere | Lump sum | Royalty | Initial investment | Minimum room area | payback |
| MY COFFEE | coffee house | From 1500€ | 3% | From 450.000 rubles | From 1 - 4 m2 | From 5 months |
| KFC | Fast food | 48.400$ | 6% + advertising fees 4 - 5% | 700.000$ | ||
| Yves Rocher | beauty and health | Missing | Missing | From 100.000€ | 35 m2 | 1 – 3 years |
| 1C | Information Technology | From 30.000 rubles | 5% | From 100.000 rubles | From 1 year | |
| mangosteen | Vending | Missing | Missing | From 199.000 rubles | 1 - 2 m2 | From 5 months |
| Kari | Shoes | 1000 rubles | Missing | From 4.5 - 6 million rubles | To be specified when applying for a franchise | From 2 years |
| Pyaterochka | Foodstuffs | From 450.000 - 550.000 rubles | Missing | From 6 million rubles | From 300 m2 | From 6 months |
| Lukoil | gas station | 400.000 rubles | From 217.000 rubles | From 5.950 million rubles | To be specified when applying for a franchise | |
| 2 GIS | Information Technology | Calculated individually | Calculated individually | From 200.000 $ | From 2 years | |
| chocolate dream | Holiday organization services | 250.000 rubles | 3000 rubles starting from 3 months of work | From 350.000 rubles | From 3 months | |
The choice of the most famous franchise primarily depends on the financial capabilities of the franchisee, so most of them choose a business with high profitability and as little investment as possible. The choice of the sphere for opening a franchise is also important, since the potential profit and payback directly depend on consumer demand.
Therefore, franchises in the service sector remain popular. retail(shops of medium price category), as well as restaurant business(small coffee shops and fast food).
Russian franchising follows the international market trends, but with a slight lag of 2-3 years. Those franchises that are becoming the best in America and Europe today set a trend that will appear in Russia tomorrow. So which franchises are thriving in the world today? Those that give customers what they need (such as medical and employment services). Those that give customers what they want (entertainment and beauty services). And those that give something that the general audience did not know about until today (acupuncture, "sushi in a plate") - playing ahead of the market. We have collected the best franchising concepts in the world, which are leaders in their countries in ratings and expert reviews, and “tried them on” to the Russian market.
Asian restaurant franchise
Despite the fact that consumer tastes are changing, Asian cuisine has held a leading position for many years in the American and European market. Today, Asian cuisine franchises offer a wide range of dishes, including not only traditional rolls, but also the recently appeared "sushi in a plate" (the so-called poke bowl, where the visitor can choose fillings for his dish). Investments in the concept of this segment in America range from 3 to 18 million rubles. In Russia, this segment is represented by a variety of WOK concepts and has also become widespread. Asian cuisine, like Italian cuisine, has settled in the hearts of Russian consumers for a long time.
beauty salon franchise
Both eyelash and eyebrow care concepts and hair and skin care services continue to be popular in this segment. The segment is becoming more and more diversified and individualized. If earlier these were beauty salons of a standard format, today there are islands of beauty where you can only tidy up your eyebrows or do only make-up. Or salons where the entrance to the fair sex is completely prohibited. The segment took as its motto “more beautiful and different services” and actively adheres to it, splitting the beauty industry into ever smaller segments and services. Investments to launch a franchise range from 450 thousand rubles to 62 million rubles.
Franchise of an educational institution
It is not surprising that this segment made it to the list of the best franchises in the world and is so popular - parents are always ready to pay for the education of their children in various fields– from programming to cooking, from swimming to scientific experiments. This segment is out of crisis and continues to develop actively. There are more and more new directions and franchises: football, volleyball, hockey schools, ballet schools. Two- and three-lingual kindergartens and additional education circles. The cost of launching such a franchise ranges from 250 thousand to 164 million rubles, and the choice is from more than a hundred franchises.
entertainment franchise
Generally the target audience such concepts are children and their parents. The main emphasis has recently been placed on the latter, so the draw and drink franchise (combining drawing lessons for children and a restaurant for parents), quests, quizzes, augmented reality attractions and amusement parks are very popular. Investments in the launch of an entertainment franchise range from 181 thousand to 169 million rubles.
Fitness Franchise
Despite the fact that this segment continues to grow from year to year, its structure is changing significantly. Small mobile fitness studios are gaining popularity, the opening costs of which do not exceed 5.7 million rubles. In general, investments in the launch of such a concept range from 289 thousand to 290 million rubles.
And now it is worth mentioning those projects that, within a few recent years are included in the international list of the best franchises, but are not yet sufficiently developed in Russia.
Frozen Dessert Franchise
Even though the market was saturated with frozen yogurt franchises a couple of years ago, their popularity has not waned, in fact, the number of such concepts continues to grow. Today, the trend abroad is frozen custard and gelato. The cost of launching such an enterprise is from 2.8 million to 112.6 million rubles.
Pest Extermination Franchise
More recently, a concept specializing in the destruction of insects (mites, mosquitoes) outside the home continues to grow steadily, thanks to relatively low investment and high consumer demand. The cost of launching such a franchise ranges from 1.5 million to 6.9 million rubles.
Pet Services Franchise
A pet is not an element of property for a long time, but a full-fledged member of the family. Pet services franchises include a wide range of services - feeding, training, hairdressing and other types of care. According to forecasts, in America spending on pets in 2018 will reach 4 billion rubles. The cost of opening the concept is from 1.4 million to 73 million rubles.
Employment Service Franchise
HR companies employ about 15 million temporary and permanent workers annually, it is not surprising that the growth of this segment outstrips even the increase in the number of jobs. Despite this fact, the segment is developing dynamically. Investments in opening a franchise - from 4.7 million to 17 million rubles.
Almost all of these areas are presented in our FRANCHISES CATALOG, and you can choose the right direction for yourself.
You can start a business by promoting your idea, for the implementation of which you need funds. In a similar situation, you are looking for investments or trying to raise a company with your money.
But there is another way. You can make money on other people's ideas, take advantage of experience and achievements successful company. This way to start your own business is called a franchise.
What is a franchise?
Franchise is a mutually beneficial cooperation between an aspiring entrepreneur or company and a brand that has achieved popularity. Aspiring Entrepreneur (franchisee) acquires the right to sell a service or product famous brand. "Senior Friend" (franchisor) expands the network of its representative offices, but for this it provides significant assistance in organizing a business and provides franchisees with its products at a bargain price.
Mutually beneficial. The franchisee gets the right to make money on the product or service of the franchisor, using his own methods developed over decades of hard research and work. For these rights, the franchisee pays the franchisor certain commissions or royalties. Both participants in the transaction are interested in the success of the common cause:
- The benefit of the franchisee is that you can start your own business with a minimum start-up capital, learn under the wise guidance of business sharks and minimize the risks that are typical for beginners.
- The benefit of the franchisor is to expand and popularize the company, attract new customers at minimal cost.
Franchises are presented in two main types: product and brand franchise, business franchise.
Product and brand franchise
The franchisee acquires the right to sell a product or service provided by the franchisor. Ways to help a junior partner may be different, but no one interferes in each other's business processes. At the conclusion of the transaction, the form and terms in which the franchise will be paid are clearly stated in the contract. But there are no royalties paid on product and brand franchises. 
business franchise
In this option, franchisees provide a wider range of business assistance services, but there is less freedom of action here. How can the franchisor help?
- the right to use the trademark;
- the entire business system is provided;
- selection, repair and decoration of the premises;
- advertising marketing;
- supply of materials, equipment and products;
- hiring and training employees;
- research, control and assistance in business optimization for the entire period of cooperation;
- access to the know-how of the franchisor.
To qualify for all this unprecedented generosity, the franchisee must pay the franchisor a certain amount at the very beginning. Then royalties are paid monthly (a certain percentage of profits).
Despite the tangible benefits of this type of cooperation, the level of responsibility of the franchisee is much higher:
- The level of customer service must meet the standards of the franchisor. Non-compliance may lead to termination of agreements. Failure to comply with the contract is punishable by fines.
- The freedom of action of the franchisee is limited by the terms of the contract.
- The lump sum payment can be substantial.
Statistics show that out of 10 franchisees, 7 succeed. They overcome the 5-year barrier more easily and more successfully, on the way to which 70% of start-up entrepreneurs fail, acting at their own peril and risk. The development of a new company is faster, fewer mistakes are made, start-up capital for implementation own ideas earn easy. Although many continue to cooperate with the franchisor after the expiration of the franchise agreement.
Popular destinations for small businesses
In some areas, only giants from entrepreneurship can work. But for small businesses, the choice of type of activity is very wide. How to choose your niche?
- Notice what product or service is missing from consumers in your city.
- Something for which you have a talent or too strong desire to do, despite serious competition. Putting your soul into the business, you will offer customers best service and succeed.
- Find out what kind of activity in your area according to government programs is a priority.
Judging by the last point, the scope for finding directions is huge:
- production and trade in foodstuffs and consumer goods;
- production of building materials and construction;
- services for the local population;
- hotel business, organization of tourism;
- IT technologies, innovation activities;
- catering establishments;
- production of medical preparations and equipment;
- collection, processing and disposal of waste and secondary raw materials;
- transport services;
- farming.
In each of these areas, you can choose your specialization and bring the level of service to perfection. If you find the right franchise that offers a good start in business, everything will turn out well.
Most Popular Franchises
Based on the results of statistical research for 2014, a list of the most popular franchises was compiled. It should immediately be clarified that these proposals are not distinguished by the lowest down payment, it is often called the entry threshold or lump sum. But the stability of franchisors' business development, powerful and comprehensive support in the process of cooperation, as well as the popularity of brands attract close attention potential franchisees. The rating is headed by companies specializing in catering:
- McDonald's- not only the most popular, but also the first franchise in the world. An initial contribution of 14,000,000 rubles and the need to have an impressive financial cushion more than pay off due to the incredible popularity of the brand.
- subway is a young and serious competitor to McDonalds, attracting franchisees with an adequate entry threshold (4,000,000 rubles), high stability, excellent payback and fame as a world-famous brand with great potential.
- Sushi Wok is a rapidly growing network of catering establishments. Attracts with a low entry threshold and high payback.
- hard rock cafe – bright brand cafe bars. The initial fee is high, but the brand is loved and known in 40 countries. The quality of service here is very high. An entrepreneur who has connected his life with this brand is doomed to success.
Per catering filling stations are in the ranking. The champion among oil and gas franchises is the network Lukoil. The initial payment for entering the business is quite democratic - 750,000. Serious costs will be incurred by the re-equipment of the gas station. But the payback here is very high, and the industry is growing steadily.
In the service sector, car washes are rapidly gaining popularity. Here the franchise champion "Washing". The self-service business idea is very successful, the development plan is thought out and tested in practice. The entrance threshold is 5,500,000 rubles. The payback period, prospects and support of the franchisor are very attractive.
Among franchises fashion clothes one of the most popular chain stores TOM TAILOR. With an initial contribution of 2,500,000 rubles, the payback period is 20 months. In addition to access to products of well-known European brands, the franchisee receives comprehensive and complete support. This is a very bright and exemplary example of a franchise business.
You can get acquainted with a more complete catalog of franchises.
Franchises for small businesses with little investment
For those who do not have the opportunity to invest several million in a business, there are a lot of affordable franchising offers:
- Franchise of a chain of gift and souvenir shops "Expedition" becomes available for 250,000 rubles. By the way, in the rating of franchises, this company takes 11th place. She is highly rated by Forbes magazine experts. The minimum markup on goods in these stores is 120%, the payback period is 3 months, there are no royalties. The franchisor promises full assistance in preparing and opening the store in 4 weeks.
- Affordable Product and Brand Franchise – Company Florange specializing in the production of lingerie and jewelry. The initial investment is 15,000 rubles. Payback period - 1 month.
- AT hotel business An interesting franchise is offered by a network of hostels Bear hostels. The entry threshold is 1,300,000 rubles. Payback period 18 months. Royalties are fixed: higher in Moscow and St. Petersburg and lower in the regions. The franchisor provides a financial model, technology for creating a profitable hostel, business automation, project launch and staff training.
- Start a Business in Franchise Production and Sales building materials You can only for 299 000 rubles. A franchise with such an initial contribution and royalties of 8% of net profit is offered by the company "ConcreteBaza". Full support at all stages, training and even a website as a gift with the prospect of making a profit of 1,500,000 rubles per month.
- Franchise from stained glass studio mr-stekolli will cost a novice businessman 29,000 rubles. The franchisor offers a complete course of study, materials, tools and catalogs with stained glass layouts.
These are just a few suggestions from a huge list. Franchise offers exist in virtually all industries and directions. 
Pitfalls of Franchise Offerings
A whole army of lawyers works for the franchisor, who have thought through the franchise agreement to the smallest nuances. The likelihood that a beautiful sign hides severe restrictions and unpleasant moments for the franchisee is high. You also need to hire an intelligent lawyer who will carefully study the contract and will defend your interests. It is better not to save on this by contacting business sharks.
In addition to the down payment, there may be other requirements for the franchisee. This may be the presence of a room of a certain area, a financial cushion. For some franchises, the number of residents in your city is important.
Often the franchisor puts forward strict requirements for the ways of business development. Even very successful ideas you will not be able to implement without the consent of the company that granted you the franchise. Restrictions may also apply to suppliers of goods or materials. One of the requirements in the contract may be the purchase of consumables from the franchisor or its partners.
The franchisor may go bankrupt. How the fate of affiliates after bankruptcy depends on the new owner of the brand. These risks are best foreseen and prescribed in the contract.
Despite the awkward moments and shortcomings, the franchise is very good way to begin entrepreneurial activity and has a lot of benefits. You just need to find the most profitable, promising for your region and interesting option for you personally. Choose, consult with lawyers, and you will find your franchise.
Franchising business video
After watching the following video, you will learn about the benefits of working on a franchise, about the development of a business of this kind in Russia and how to draw up a contract correctly:
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