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CASE Franc.ua

A success story
We share real experience of cooperation with our clients. We tell what problems we solved, show the process and brag about the result.

About the company

National Ukrainian network of specialized retail outlets and bakeries – cafes selling high-quality traditional fresh baked goods.

What started the history of the largest franchise chain in Ukraine

Until 2012, Oleksandr Fedets, the future owner of Fedets family bakery, was developing small, independent establishments in Kryvyi Rih. The idea was born in the crisis year of 2009, and the story began with the opening of a full-cycle bakery department, “Bakery No. 1”. Things were going well, the establishment was a success, and the owner realized that he wanted to continue. In 6 months, 7 more full-cycle branches were opened. The next step was to open his own centralized production.

The process of learning from implemented cases and market analysis began. At that time, Oleksandr actively visited many exhibitions in Europe and learned about the interesting approach of the Germans, which he franchised a few years later.

What is unique about it? In Germany, there is a concept of “Sunday” buns: when a baker takes a day off on Sunday, he pre-freezes half-baked buns, and people buy them freshly baked on Sunday. As a result, Oleksandr opened his own production in 2011 and, as he admitted to us later, he was never satisfied 🙂

We wanted to expand the product range and sell croissants, ciabattas, paninis, French bread, and so on. At the same time as we were introducing new technologies, we were opening stalls with classic pies and buns with different fillings. But the new French pastries were not sold in these kiosks, and then they realized that consumers needed a different format.

At the same time, Olena, Oleksandr’s wife, was inspired by the enthusiasm with which he worked on the projects and decided to work for herself.

Meeting Myroslava Kozachuk and the birth of the franchise story

In 2012, at the Franchising exhibition in Kyiv, Oleksandr met Myroslava Kozachuk. Knowing about the cases at that time, he did not miss the opportunity to ask for advice on what kind of business to choose for his wife. But when he told Myroslava about his business, he got an answer: “Sasha, refine your project and you will be very successful! You have your own production, and the format of bakeries with high service is a trend!”

It was at the exhibition, over a cup of coffee, that we came up with the idea to open a French bakery, which everyone now knows as the Franc.ua brand. When he returned to Kryvyi Rih, he had a new goal: to make the coolest project in Ukraine. At that time, a 30-square-meter space in a kiosk in the heart of Kryvyi Rih, in the 95th district, had just become available. The main motivation for such a big opening was responsibility. Specifically, responsibility to the people who work at the production facility, to the company that provided the funds for the equipment, and to my wife.

“‘Put yourself under pressure – it will only speed up the project’s launch.”

Then, in a rather short period of time, a new unusual format for the industry was developed and a team of personnel was assembled. Not all people believed in the approach, but it was crucial for Oleksandr to create a new format that would be loved by the city’s residents. And so it happened.

“Don’t move away from your idea or project, but gather a team of like-minded people around you.”

An important component of the launch was the formation of the necessary cost of production and the opening of the facility. When Oleksandr negotiated with suppliers, he inspired them with his idea to build the largest network in Ukraine and invited them to take a chance and get on this bandwagon at the first station. UPD for now: no one regrets their decision for sure 🙂

After the opening of the new format, there were queues of customers. Huge demand, novelty of the format, affordable product, in-house production and, of course, the black color – all these components combined to make the kiosk extremely popular among young people. And this is despite the close proximity to McDonald’s (Franc.ua opened 10 meters from the international leader).

And when Oleksandr was standing in line at the supermarket and heard students say, “Meet me at Franc.ua” instead of “Meet me at McDonald’s,” he realized that he was heading in the right direction.

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About the beginning of the franchise creation

After the fifth question “Is it a franchise?” Oleksandr already came to Myroslava with a request to create a franchise for Franc.ua.

The work began, and Myroslava and the Franchise Group team first talked about all the specifics of scaling through franchising, how to find partners, what the franchise business model and Franchise Book consist of.

After all, in fact, an entrepreneur who is engaged in baking and has created his own format is not yet a franchisor. To achieve the goals, the Franchise Group team has developed individual tools to increase the value of the franchise project, worked out a development strategy and formed the most effective solutions for franchise promotion. Our team was involved at every stage, and in the process of implementation for the future largest network, we completed the following stages:

DEVELOPED FRANCHISE PRODUCTS

The Franc.ua franchise was chosen by both start-up entrepreneurs and experienced franchisees. Regardless of their experience, each partner is interested in the development of the franchise object, and this was one of the main selection criteria. And as a result, Fedets Family bakery was created!

Investment evaluation and development of a financial model. Development of a legal package of documents. Development of a franchise package. Consulting support at all stages of preparation. Involvement of Franchisees in the network. Assistance in negotiations with franchisees and signing agreements. Presentation of the project at forums of various sizes Search for strategic partners in new countries

Franchising results

2012

$20,000 and a business idea for his wife

2017

211 locations in Ukraine. Creation of a new format "Family Bakery".

2018

Launch of a new production facility and 200 facilities in Ukraine

2019

350 locations, launch of R-café with sales throughout Europe and launch of two more new projects

2020

Launch of the new projects "Family Pizza" and "Dough Factory"

2021

550 locations. Sale of the concept of a franchise bakery chain to Kazakhstan.

2022

Launch of the new Martin format for Poland and Ukraine.