Franchise companies
in Russia

Are you ready to start your business in Russia? Do you want to buy some existing franchise and open your store under a well-known brand? Or do you maybe have your own brand and would like to expand your network in Russia? Regardless of your goals, this article is for you.

What kind of franchises do exist in Russia?

The franchise ventures in Russia may be classified by the type of cooperation and allocation of the territory.

By the type of cooperation:

  • Production

    A franchisee gets the right to manufacture goods under a franchisor’s brand. Usually, this type of franchising relationships requires high investments, and the brand owners sell their franchises only to the existing partners.

  • Sales

    The franchisor manufactures the products, and the franchisee buys the right to open the store under the franchisor’s brand and sell his goods. Typically, these franchises have no lump-sum and royalty payments.

  • Service

    In this case, the franchisee primarily provides services. However, this type of cooperation does not exclude production. For example, in the fast-food industry, the preparation of the dishes is organized on the franchisee’s premises. It is a broad category which includes all the franchises that are not related to production and sales.

Classification of franchises by type of cooperation: Production, Sales, Service

By the type of territorial allocation:

  • Exclusive

    There is only one franchisee on the designated territory. The franchisor has no right to sell his franchise to the other partners in this area. Typically, this applies to some definite house, rarely – to the definite area.

  • Non-Exclusive

    There are several franchisees on the one territory. This scheme is usually applied by the low-cost franchises when the competition between partners is beneficial, or if the territorial allocation does not influence the franchisees’ performance.

  • Master-franchise

    The franchisee buys not only the right to open his stores on the territory, but he can also sell this right to the other franchisees, levy charges, control them, etc. This partner is called a sub-franchisor or a master-franchisee.

Classification of franchises by type of territorial allocation: Exclusive, Non-exclusive, Master-Franchise

What are the examples of successful franchises in the Russian market?

If you would like to conduct a market analysis and explore the existing franchise businesses in Russia, you should start from the researching franchise catalogs. These websites contain most of the franchise offers in the market, and they typically have franchise ratings that show the best franchise ventures in the field.

Below we will provide 5 examples of successful franchises in Russia from different sectors of activity. These franchises regularly take the first positions in the ratings.

1. F!T SERVICE car-care center

FIT Service logo

The car service center based on the FIT SERVICE standards is a transparent, well-organized business, whose owner always see the performance and efficiency of the personnel and business processes. The FIT SERVICE franchise is not only the brand; it is a business format franchise. During 12 years, this company opened 12 own service centers in 5 cities, and all these services became successful and gained the trust of more than 700,000 customers.

  • Year of incorporation
  • Year of franchising initiation
  • Number of franchisees
  • Number of own entities

Franchise description:

  • 250,000 rublesLump-sum payment
  • from 18 monthsPay-back period
  • 3 monthsBreakeven point
  • 2,500,000 rublesLump-sum payment
  • 6.5% of total revenueRoyalty payment

2. Poliglotiki

Poliglotiki logo

Poliglotiki is an international network of language centers where children between the age of 1 and 18 learn foreign languages. The methodology center of this company created a unique education program that helps students to speak and think in another language.

  • Year of incorporation
  • Year of franchising initiation
  • Number of franchisees
  • Number of own entities

Franchise description:

  • from 180,000 to 790,000 rublesLump-sum payment
  • 6-8 monthsPay-back period
  • 350,000 - 1,300,000 rublesInitial investment
  • from 6,000 to 18,000 rublesRoyalty payment

3. Etagi

Etagi logo

Etagi is a real-estate agency that holds the 7th place in the world by a total number of deals completed and a leading position in the Russian market. The company was founded in 2000, and it has successfully been operating in the Russian real-estate market for over 20 years. Today, Etagi company is presented in 127 Russian cities and 7 other countries, and it creates jobs for more than 11 700 people.

  • Year of incorporation
  • Year of franchising initiation
  • Number of franchisees
  • Number of own entities

Franchise description:

  • NoLump-sum payment
  • 19-24 months(13-17 months in case of existing agency)Pay-back period
  • 1,500,000 - 3,000,000 rubles(700,000 - 2,000,000 rubles in case of existing agency)Initial investment
  • 3.75% of total revenueRoyalty payment

4. 220 Volt

220 Volt logo

Etagi is a real-estate agency that holds the 7th place in the world by a total number of deals completed and a leading position in the Russian market. The company was founded in 2000, and it has successfully been operating in the Russian real-estate market for over 20 years. Today, Etagi company is presented in 127 Russian cities and 7 other countries, and it creates jobs for more than 11 700 people.

  • Year of incorporation
  • Year of franchising initiation
  • Number of franchisees
  • Number of own entities

Franchise description:

  • 290,000 - 390,000 rublesLump-sum payment
  • from 12 monthsPay-back period
  • 3,500,000 rublesInitial investment
  • NoRoyalty payment

5. Dodo Pizza

Dodo Pizza logo

Etagi is a real-estate agency that holds the 7th place in the world by a total number of deals completed and a leading position in the Russian market. The company was founded in 2000, and it has successfully been operating in the Russian real-estate market for over 20 years. Today, Etagi company is presented in 127 Russian cities and 7 other countries, and it creates jobs for more than 11 700 people.

  • Year of incorporation
  • Year of franchising initiation
  • Number of franchisees
  • Number of own entities

Franchise description:

  • 413,000 rublesLump-sum payment
  • 12-24 monthsPay-back period
  • from 3,000,000 rublesInitial investment
  • 3.5% + Vat of totla revenue during the first year

    5% + Vat of total revenue from the second year

    Royalty payment

Now, when you have the information about top franchises of different fields of services, it is possible to grasp the real dimensions of the situation on the market. Probably, some of these franchises are close to your sphere of activity, and you can compare the above numbers with your business metrics.

If you work in another field and would like to gather information about franchises in your area, you may check this franchise rating. It has various filters that allow sorting franchise offers by their position in the rating, field, and investments.