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Franchisors go to the rescue
11.03.2015 4121

Franchisors go to the rescue

The situation of the franchisee in the crisis is perhaps the most fragile. Experts say that without additional anti-crisis expenses, many franchise holders this year will lose financial stability and curtail their business. Are franchisors ready to sacrifice their profits, take part of the costs for themselves, or increase the costs of helping their franchisees in order to maintain their occupied share in the Russian market?

As a survey among operators shows, the recession in the Russian economy, a sharp increase in the exchange rate and a decrease in the purchasing power of the population are forcing Russian franchisors to change their business strategy in favor of the franchisee.

Thus, the Alba shoe retailer launched a program for returning unsold goods at the end of the season, said Alba Franchising Director Mikhail Chernikov. Also, the retailer began to provide its partners with a factoring payment system that allows you to get a deferred payment for a percentage of the amount payable. The percentage itself is divided in half between the franchisor, the owner of the franchise, and the franchisee, its buyer. According to Chernikov, such measures were taken so that the partners had free funds.

Among other ways to help their partners were mentioned: reduction of lump-sum payment and royalties, transfer of payments between the franchisor and franchisee from currency to rubles, refusal to index prices, reduction of requirements for commercial equipment, and negotiations with landlords on the ground.

The situation of the franchisee in the crisis is perhaps the most fragile. Experts say that without additional anti-crisis expenses, many franchise holders this year will lose financial stability and ...
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