market analytics
of franchising in 2017-2018

Number of owned and franchised facilities of franchisees, 2015-2017

• The trend of development and launch of franchising in chains has not changed over the last three years;
• On average, companies selling franchises have 25% of their own locations; all other locations are developed through franchisees;
• Over the past year, far more franchisees have begun to formalize their sales transactions through a franchise agreement.

Number of owned and franchised locations by industry, 2015-2017

• During the 3rd year after the 1st place in the number of franchisees is occupied by services;
• Services in the logistics, children’s and beauty sectors are being created and developed more now;
• Retail still feels underperforming due to large investment entry;
• Catering is steadily developing in the leading directions.

Origin of franchise brands, 2015-2017

• There are still a lot of opportunities and areas not taken up in the Ukrainian market;
• Today, a significant market share in the number of franchise locations is held by international companies with access to cheap resources;
• Ukrainian companies are taking 7% of their share every year due to pricing and cheap hired labor.

• The market is actively developing a systematic approach to franchise formation;
• Companies are adopting franchising as a strategy by targeting franchise formats;
• Positions of “franchising manager” appear on the labor market.