Business after quarantine: deductible help local entrepreneurs

Franchising as a way of dealing with the economic consequences of the pandemic. What are the franchises most affected by the onset of coronavirus, and which on the contrary are gaining popularity?

Its a private school was an old dream of Marina Bushmeleva. The teacher could not determine the format and business model until they found a franchise of school of intellectual development “Peregrine”. The opening of the institution coincided with the pandemic coronavirus, but the franchise organization was advised to adjust training online and now in the institution remotely involved 20 students not only from Russia but also from neighbouring Ukraine. “There are a lot of subtleties of economic. And, having no knowledge in this area, I knew that the franchise company these are the people on whom you can rely with any questions and feel confident in this activity”, — says Marina Bushmeleva, co-owner of School of intellectual development Sapsan.

Roman Ivaschenko for more than ten years owns a service station in Tyumen. A couple of years ago, customers became more and entrepreneur realized that I need to expand but have decided not to reinvent the wheel, but to buy a model franchise. When all the competitors were idle because of the coronavirus, one HUNDRED of the Novel increased by almost 200 percent monthly income. “In times of crisis, when everyone started to prepare to panic, we grew at about twice the previous year”, — says Roman Ivaschenko, the owner of the car “Camry”.

the franchising, that is transfer of business under a certain brand and a specific business model involves several contributions from franchisees – those who rent the brand. The first payment is usually the biggest. Also charged, the monthly payment of royalties. It can be from two to six percent of the revenue. Sometimes there may be promotional contributions to the promotion of a common brand. But even these costs do not make the franchise less relevant in the market. And the coronavirus, evencould become more popular franchises in the field of IT industry. For example, particularly relevant during a pandemic requests for online accounting. “Of those franchisees that we signed up to 1997 inclusive, after 15 years, through two crises: 98-year severe crisis and 2008 severe crisis – 15 years left to work 87 percent. This is amazing stability for any small business, not only for the Russian, American, European,” explains Boris Nuraliev, founder and co-owner of 1S.

the Russians began to buy more ready-made business model. In the beginning of the year ready to give more than ten million rubles for the franchise was about one third. Now more popular brands cost up to one million rubles. For the period of the pandemic the demand for deductibles in the field of pharmacy in Russia has grown three times. Food brands gained more than 25 percent. “Scope of delivery, points of issue, it is the sphere of public catering with the ability to deliver the it franchise tech franchise in measures of abolition of offline trade. This bankruptcy, this repair any equipment. In particular, garages and so on,” says Nina Semin, founder of the directory of franchises

But franchise restaurants, health clubs and Barber shops still have not recovered from the pandemic. According to analysts, in late April, the franchise network in these areas has lost about 15 percent of existing franchisees – that is, those who worked on franchises. Despite this, experts predict good times for the market as a whole. After all, buying a ready-made business model can help those businesses that are most affected and even lost employees in the beginning of the year.