market analytics
of franchising in 2019-2020

Number of own and franchise facilities of franchise companies, 2017-2020

In Ukraine, the share of franchise locations is already 75-80%, which is approximately the same as the international practice. This is less than in the US, where 85-95% is franchising. However, a lot depends on the sphere of activity

The companies that choose a strategy of development through franchising should realize that it is possible to sell their experience if they already have 5-7 facilities, which are profitable and have been operating for more than three years. When there is experience and understanding of their business model, the further task is to create an intellectual component for their franchisee partners.

Number of owned and franchised facilities by branches, 2017-2020

In terms of the number of franchised facilities, services are in first place, followed by catering, and only retail is in third place. Retail is mostly developing on its own. There are successful cases, but they are still few. Everything depends on in-house production. In order for Ukrainian retail to grow rapidly through franchising, you need to have your own production, your own or well-established logistics, and design departments (if it is a fashion retail).

Suggested franchise formats, 2017-2020

The franchise format determines the format of the business: the size of the facility, the assortment, the number of employees, etc.

Assuming there is a full-service healthy food restaurant. It has 300 square meters, a 22-item menu and 15 employees. The cost of launching of such a business is $260,000-300,000 at the rate of $900-1000/sq. m.