market analytics
of franchising in 2018-2019

Number of owned and franchised facilities of franchisees, 2016-2018

• The trend of development and launch of franchising in chains has changed;
• The percentage of own facilities decreased from 26% to 21% compared to the previous period, while franchise facilities – on the contrary – increased from 74% to 79%, respectively;
• The absolute number of franchised locations increased by 7,626 units during the year.

Number of owned and franchised facilities by industry, 2016-2018

• There was a significant increase in the number of franchises among services and retail;
• Education, sports and logistics services are actively growing;
• Food retail grew significantly due to the convenience store format; non-food retail is developing steadily and smoothly;
• Public catering for the first time in recent years showed a decline by 16% (913 closed facilities).

Origin of franchise brands, 2017-2019

• The share of Ukrainian franchises continues to steadily increase, which indicates the development of Ukrainian franchising;
• Nevertheless, it is the development of the market that has attracted the attention of a large number of international players;
• In addition, it should be taken into account that international brands are usually looking for 1-3 partners for the whole country in order to build a network at the expense of local players.

• The market is actively developing a systematic approach to franchise formation;
• Companies are adopting franchising as a strategy by targeting franchise formats;
• “Franchise manager” positions are emerging in the labor market.