Franchising

Franchising is a form of business organization when the owner of a company (franchisor) transfers the right to sell goods or services to another company (franchisee) for a fee. Franchising is one of the most popular types of market relations. According to statistics, there are more than 16.5 thousand franchisors and 1.2 million franchisees worldwide. The business owner does not need to come up with anything to calculate, draw up a business plan, because everything has already been done for him. He only needs to purchase a franchise and follow the prescribed working conditions.

Benefits of franchising:

1. Ready business plan. Buying a franchise allows you to use a ready-made step-by-step guide to building business processes and achieving goals.
2. Brand name known in the market. Franchisors are most often large companies that have won the trust and loyalty of the target audience. Even if the brand is known only in a certain region, in the future you have every chance of becoming part of a large network. In this case, it is necessary to take into account all the risks associated with entering a new market.
3. Assistance in the selection and training of employees. Franchisors often offer their help in finding staff. They also often train new employees. However, this paragraph is not an inviolable law, so it is important to study the terms of the franchise in each individual case.
4. Agreement with suppliers. Most often, when buying a franchise, the franchisee receives a ready-made list of reliable suppliers with whom uninterrupted cooperation has already been established.

Types of franchising

1. Trade franchising - in trade franchising, the franchisee has the right to sell the franchisor's product and use its sales methodology. This is accompanied by the fact that the franchisee uses the franchisor's brand for the store name and enjoys the support of the franchisor in the visualization of the outlet, assortment selection, staff training, customer service, merchandising and marketing.

Examples of trade franchising in Ukraine can be: Eldorado, Nike, Adidas and Zara.

1. Service franchising - the essence of this type of franchising is that the franchisor grants the franchisee the right to use their own brand for the provision of services for commercial purposes. That is, such a franchising model allows the franchisee to open a point of service for the population or business under a well-known brand, as well as receive training in the provision of services and use an effective customer service methodology in their work.

Examples of service franchising in Ukraine can be: McDonald’s, Кофе Хауз

1. Industrial franchising - this form of franchising is aimed at the production of goods. In this case, the franchisor transfers to the franchisee unique technologies for the production of products. In this case, the franchisee has the right to put the franchisor's trademark on the manufactured products. In the production of goods, the franchisee is obliged to comply with all quality standards that are established by the franchisor.

Examples of industrial franchising in Ukraine can be: Львівська майстерня шоколаду, Львівська пляцка

1. Business franchising - this type is a more in-depth model of trade or service franchising. Here you not only get the right to sell a certain product, but also the whole concept of the business: design, uniform, advice on product promotion, the way the product or service is provided, and more.

Examples of business franchising in Ukraine can be: McDonald’s, Aroma Kava, GRILL PUB.