market analytics
of franchising in 2021-2022

Dynamics of the number of franchisors in Ukraine, from 2001 to 2019

As for the beginning of 2022, there were 592 franchisor companies operating in Ukraine. These are the companies where you can come and buy a franchise.

The analytics, which we conduct every year, shows that the number of companies that want to develop is steadily growing, as well as the trend of development through franchising.

We would like to note that these are the companies that have at least 1 franchise sold and are prepared for scaling.

Number of owned and franchised facilities of franchisees, 2018-2021

At the beginning of 2022, there were 24,000 franchise facilities operating in Ukraine.

And we also see a dynamic: for companies implementing franchising, this business model is becoming a key business area. That is, the companies that have several facilities and implement franchising are focusing on selling the franchise itself. This allows companies to grow quickly, to attract investment, and to capitalize on the value of the business. On the other hand, we see that approximately 20,000 entrepreneurs have chosen to develop their business through the purchase of franchises, which indicates the trust in Ukrainian companies by franchisors, trendiness and profitability of Ukrainian business.

Comparative characteristics by industry: owned and franchised facilities, 2020-2021

franchising transformation
in the war time

The purpose of the research of the franchising market in full-scale invasion is to highlight the current state, the main problems encountered in the wartime; to document the trends of transformation of Ukrainian franchising
Target group of the research: Ukrainian entrepreneurs developing business through franchising (franchisors, franchise managers, network development directors).
Survey period: July-August 2022.

Status of scaling the company through franchising now

43% Actively selling franchises

23% Paused, but renewing and will start/continue selling soon

20% Will start/continue scaling after victory

14% Paused

Which countries are being considered for scaling

51% Plan to scale both in Ukraine and abroad

29% Choose to scale only abroad

20% Plan to scale only in Ukraine

7 of 10 FRANCHISERS

continue to consider Ukraine for scaling up

The West of Ukraine and Poland are the most attractive for scaling up chart

Did the facilities have to close during wartime?

20 networks No facilities were closed

15 networks It was necessary to close N-number of objects

More than half of the chains have not closed any facilities

How has the franchising department changed

*Part calculated from the number of companies that have their own franchise department (29 out of 35)

48% Had to reduce staff

41% No change at all

11% Hired new employees

7 of 10 franchisers

ARE CURRENTLY HIRING NEW EMPLOYEES FOR THE FRANCHISE DEPARTMENT.

Foreign Trade Managers
Technical support specialists
Sales Managers
Marketing specialists

35 NETWORK

Reduced mandatory payments for franchisees

65% Entrance fee and royalties have not changed

26% Entry fee remained unchanged and royalties were reduced

9% Entry fee was left unchanged and royalties were canceled

But no one canceled both the entry fee and royalties.

How has the portrait of the Franchisee changed?

46% They started to pay attention primarily to adaptability, business experience in other countries and origin of the Franchisee's assets.

54% Franchisees have not changed their portrait of Franchisees

2022 was the year of “despite” for Ukrainians. We have endured, united and consolidated ourselves. All this is despite all the efforts of the terrorist state. And the year of “despite” is finally over. We are sure that 2023 will become the year “for the sake of”.

Analytics for other years

2015 analytics

2016 analytics

2017-2018 analytics

2018-2019 analytics

2019-2020 analytics

market analytics of franchising in 2021-2022