One of the leaders in the sale of franchises in Moscow and the Moscow Region, Tatar Pirogi conducted a study on Franchise in Russia in order to identify key factors affecting the opening and running of a franchise business.
When choosing a franchise, 75% of the respondents chose the payback period, 70% is the probability of business success, 61% is the size of the initial investment, and 52% is the proximity of the business topic to personal interests as the most significant criterion.
The study identified the main risks when doing business in franchising: the key problem for the franchisee was the claims of the inspection organizations (sanitary epidemiological station, fire department). So answered 65% of the study participants. 60% identified problems with personnel as an equally important point when considering risks; 48% of entrepreneurs fear too much competition. An important subject of discussion is the interaction with landlords - 48% of respondents confirmed. And finally, problems with tax authorities concern 33% of respondents.
The study also evaluated the potential volume of investments in a franchise-based business: 44% of respondents are willing to invest up to 500 000 rubles, 40% will spend on a franchise from 500 000 to 1 million rubles, and only 16% has at their disposal more than 1 million rubles for starting a business.
The survey made it possible to determine the payback periods of a franchise-based business that are acceptable for entrepreneurs: 52% of respondents are ready to wait for a franchise payback period from 6 months to 1 year, 28% plan to return money in 3-6 months, and only 20% of respondents expect to “recoup” their investments after 1-2 years.
The research took place within the framework of the International Franchise Festival in Moscow on April 9-10, 2015. More than 200 guests of the event were interviewed, among whom 87% are residents of Moscow and the Moscow region, the majority of visitors from the regions represented the Central Federal District (Kaluga, Ivanovo, Yaroslavl) and the Volga Federal District (Nizhny Novgorod, the Republic of Bashkiria).