Many entrepreneurs seek to acquire a franchise that does not require an initial investment. After all, such cooperation does not require spending on a lump sum and royalties. It remains only to get to work, establish a business and make a profit. Of course, you will have to spend money on the purchase of goods, rental of premises and other initial investments if the franchisor does not offer his help (ready premises, start-up goods, uniforms for employees, etc.).

Zero Entry Franchise Examples

Optimist Optics

There are no entrance fees, royalties, other current payments.

Suggestions for future franchisees:

• Free eye examination by an ophthalmologist.
• Medical Marketing Program.
• Production of points of ANY complexity.
• Frames exclusively presented only in our salons, Sunglasses and soft contact lenses.
• Well-known world brands at the manufacturer's price.
• Orthokeratology. Selection of lenses for night wear.
• Discount programs, promotions, sales, prize draws.
• Possibility to order goods through the Internet store.

Basic data about the company: year of foundation of the company - 1998; the year of the launch of franchising is 2012. There are 20 franchise enterprises for 2018. own enterprises — 15.

Alba is a great franchise even for a small town

Royalties and lump sums are zero. Guarantee payment 450,000 rubles. (returnable). Investments from 5,000,000 to 10,000,000 rubles.

Alba is a quality classic shoe, the basis of which is leather and suede. The success of the outlet is guaranteed, because the products always remain relevant. There are other conditions as well.

1. Providing goods on a commission basis. The amount of remuneration is individual for each individual case.
2. Purchase of the necessary commercial equipment, the work of technical equipment is carried out with the help of the franchisor.
3. The franchisor searches for and repairs the premises.

The franchisor provides comprehensive assistance when opening a business. This applies to the training of the entrepreneur himself, the staff. Selection of the assortment is determined by the available free space. The marketing specificity of a particular region is taken into account. To determine these parameters, a specialist leaves the place.

Orby - children's clothing franchise without investment

Franchise related to children's clothing. Royalties with lump-sum contributions are not set, they are equal to 0. But to launch the project, an initial investment of at least 2.5 million rubles (up to 4 million rubles) is required. Region, size retail space determine what will be the investment when starting a franchise. The area of ​​the outlet must be at least 70 square meters.

From additional conditions:

• Full compliance with the terms of the agreement.
• The presence of a number of playgrounds, developing complexes.
• Placement of retail space is mandatory in large shopping malls category A.

Fabretti

Fabretti is a franchisor that sells fashion accessories. There are no royalties or lump-sum fees. Initial investment - from 1 to 2.5 million rubles. Specific figures are determined by the format of the store. It can be a small island in a shopping center, or a full-fledged retail space.

Accessories and leather goods in the salon should be only branded. Only one brand is represented in boutiques. The first batch of goods can be purchased in installments for a period of six months. Each collection has more than 4 thousand items, the constant availability of goods in a warehouse in Moscow, prompt delivery of orders (from order to shipment 2 days).

Investments 900,000 - 3,000,000 rubles. There are no royalties or lump-sum fees. There are no fees for using the brand. In the CIS and Russia, the brand has long been popular. It is engaged in the production of a collection of clothes that are distinguished by an affordable price level and convenience, a relevant and original cut, and an individual style.

This franchise allows you to open stores of various formats. The difference between them lies in the following details:

1. Possible markup on the goods.
2. Investments to launch the project.
3. Square.

The franchisor is responsible for the renovation of the premises, giving them a corporate identity. Creation of design projects is free. The manager and merchandiser personally supervise the work of each franchisee.

Children's clothing - franchise Gulliver

Investments - from 2 million rubles without commodity content. Investments - from 3.5 million rubles. with commodity content. The assortment of stores - children's designer clothes, a complete wardrobe, accessories. Payback - from 18 months. Year of foundation of the company - 1997. Year of launch of the franchising program - 2006. Geography of development - Russia, the CIS, countries of Western Europe.

Soviet pharmacy - pharmacy franchise without investments for sale

The Soviet Pharmacy is a "near home" format pharmacies in the low price segment with an area of ​​​​40 sq.m., which attracts with its convenient location and a wide range from 30,000 items at affordable prices. The key to success and competitiveness is the supply of medicines at the lowest possible wholesale prices from federal suppliers, the availability of direct contracts with global manufacturers and an active marketing policy.

Entrance fee - 999 rubles
Royalty - none
Area: from 40 sq.m.
Price segment: low (economy)
Average check: 500–700 rubles
Format: Discount ("At home")
Assortment: more than 30,000 items
Average margin: 25%
Payback period: from 8 to 12 months
Geography: regions of Russia

The absence of primary (lump sum) and permanent (royalty) payments is something that not every franchisor is ready to agree with. There are certain types of enterprises that use such schemes in their work. This usually applies to commodity franchises. The most profitable ones are those who also produce their own goods.

Such offers are possible in the event of the sale of: furniture, items for sleep, pharmaceutical products, precious metals and stones, food, footwear, clothing and many other goods and services.

The franchisor's stores usually have a common style and interior design. Thanks to a well-known brand, new franchisee outlets become immediately recognizable. Separate franchise standards are being developed, related to such factors as the location of the store, the occupied retail space. Thanks to this, it becomes easier to understand that the store belongs to a particular network.

royalty free and down payment grocery stores often operate using the reverse scheme. That is, royalties and lump-sum contributions are not required at all. The new members of the franchise handle the various key issues involved in launching the brand themselves. The franchisee becomes a kind of manager of several outlets, and not just an individual entrepreneur. All proceeds are transferred to the parent company. Certain percentages, up to 15-25% of the amount, become an agency fee. Do not forget about the rules for using a well-known brand in such situations. All features of interaction are prescribed in the contracts. In addition, there are other options for developing a franchise.

Features of the development of new regions. The franchisee has to sacrifice a certain amount of profit on marketing costs. After all, it is necessary to take care of promoting the brand in a new market. Such offers rarely appear on the market, and they are available only to entrepreneurs who have achieved some success. Most often, the franchisor offers marketing assistance in the development of new regions.

For any franchise, approximately the same scheme is used. The following actions are expected:

• Signing a contract, studying business processes and franchise requirements, training.
• Rent, purchase of premises.
• Implementation of repairs, according to the general concept.
• Purchase of commercial equipment for the implementation of the project.
• Providing the first batch of goods.
• Purchase of further parties, with a certain frequency. It all depends on the specific specialization.

The main thing is not to forget about compliance with work standards in the process of project implementation. The same applies to customer service, maintaining corporate identity. It becomes mandatory to participate in various promotions, promotional campaigns. All conditions must be specified in the commercial concession agreement and the franchise package.

Attracting third-party investors to develop the franchise

The initial contribution to the development of the franchise can be found with the help of investors. The purchase of equipment and rental of premises for the first half of the year, when the franchise is not yet profitable enough, can become an unbearable burden for a novice franchisee. A real (even novice) entrepreneur must think through all methods of raising funds in advance so as not to disappoint the franchisor. Finding an investor is a great way. Only in this case, the franchisor should be aware of the existence of a third party involved in financing the new franchise (everything is documented).

When attracting investment in a project, it is important to concrete examples show how successful the franchise development company has been. An obligatory stage is the development of a business plan with a critical forecast, developed by the company at an earlier stage. This will convince the investor that work in this direction can be successful.

Separately, the conditions of work with suppliers of goods, contractors are demonstrated. The terms and conditions are also indicated, under which the investor can become a full-fledged owner of the enterprise (buy out the entire project) or take over the management of the business.

Conditions for the investor should be favorable. What projects are interesting for investors:

• Interest payments are higher than the market average.
• Redemption of the investor's share at a price determined in advance. This should be decided within a specific timeframe.
• The controlling stake in the property must remain with the investor.
• The profitability of the project depends on the results of the activity.
• Guaranteed business continuity.
• Acceptance of all risks on partners.

Careful preparation and a purely practical approach are what are important for those who choose a franchise for themselves. The focus is on the following criteria:

How long has the company been on the market? The situation is more stable for those who have been working in the market for a long time. More chances to achieve success by buying a franchise of an enterprise that has been operating on the market for several years.

The pace of business development. The activity is definitely successful if more stores are opened every year.

Down payment and royalties. A balance should be sought between the size of the initial investment and future income.

Support from partners. Legal support becomes an important criterion. It is necessary to comprehensively study any information related to a particular enterprise. Verification is carried out even for famous companies when it seems that the name is on everyone's lips.

When calculating the cost of selling a franchise big role are playing:

• Availability of necessary space for trade and production.
• The duration of the agreement.
• Franchise area.
• Brand fame.

Conclusion

It is imperative to draw up a realistic business plan that takes into account both positive and negative factors.

To avoid fraud, it is necessary to study the terms of the contract, the history of the franchise and collect feedback from people who work or have worked with this franchise.

Special attention is paid to the search for premises, preparation of documentation. It is best to search for premises together with the franchisor, as his experience in developing this business is invaluable.

It remains only to open a franchise business, and watch how it brings additional income. A great option for those who are ready to enter the market under a well-known brand!

Please see the list of franchises without attachments. Only those franchises that do not have a down payment are selected in this list. This does not mean that your business will operate without investments at all. You just simply do not have to pay an initial fee.

If you like any franchise without attachments from the list and want to learn more about it, please contact the franchisor directly using the convenient form feedback on our website.

Starting a franchise business without investment is much easier in terms of material and labor costs than trying to work on an expensive franchise. Try it and you will feel the franchisor's high-quality support in solving organizational issues. The business plan that they will help you draw up will make your franchise work without investment pleasant, and most importantly profitable.

Please check out video reviews of franchises without attachments:

List of franchises without attachments

Below we have selected for you a few franchises without investments that may be of interest to you. Please check them out.

A franchise without investment is the dream of any entrepreneur. When working according to this scheme, you practically do not need to spend anything. There is a well-known brand, by concluding an agreement with it you can work, and you do not need to deduct any payments - work and earn. This is how the franchisee sees such an offer, but often a franchise without investment for sale involves the purchase of goods and a franchisor-manufacturer.

Popularity, number of offers on the market

Offers from franchisors with a promising “no investment” are very numerous, but it should be understood that it is unlikely that it will be possible to do without financial injections. Well, think about who will offer their popular brand, or rather the right to work under it, give a scheme for launching a new outlet and will help development with all their efforts if they don’t receive financial gratitude for it. The logical answer is that no one, in any case, there is a benefit for the franchisor in such cooperation.

Important! If the franchisor says that he does not require a lump-sum contribution to the regular payment of royalties, this does not mean that he will not have to invest anything perfect. Often, such a franchise agreement without investments implies the mandatory purchase of a certain, previously agreed, volume of goods that the franchisor produces.

This business proposal is quite profitable, because you can save on payments that are mandatory for other franchises, but not always. Sometimes franchisors go for tricks, stating that the franchise is "no investment." Yes, there will be no lump-sum contribution and royalties. But the first payment can be disguised as a franchisee's training fee, and the second is already included in the form of an extra charge in each purchased product, so when you find such an offer, you should carefully examine whether it is really so profitable.

It is worth understanding that similar business it’s not very easy to start in the sense that many risks lie in wait for those who want to “do not get their feet wet and catch a fish”, among the most common problems:

1. Lots of scams. The terms of the contract are sometimes so specific. What to call such a type of business as such that does not require investments does not work. For example, in separate agreements there are clauses that the business premises must be owned or purchased immediately after signing the franchise agreement. Definitely - this is a disadvantageous offer, but a fraud, therefore, before signing any agreement, you should show the agreement to an experienced lawyer.
2. Competition. Although there are real offers of this kind, there are not enough of them for everyone, which means that there will be a real struggle between potential franchisees for each contract.
3. Certainly unfavorable conditions for the franchisee may be included in the agreements. For example, too large batches of purchases of goods that objectively will not have time to be sold. In order not to get into such a situation, you should carefully monitor the market and study the contract.

Important! Before agreeing to a franchise for a small business without investment, you should determine what benefits the franchisor receives, it should be obvious. If this is not the case, then there may be surprises along the way of launching a project or its operation.

What types and types of franchises are most often without investments

Not every franchisor is ready to offer his franchise without requiring initial and ongoing payments. There are specific species and types that can work this way.

Most often, these are commodity franchises, moreover, if the franchisor in one person is also the manufacturer of the goods sold through the network.

Most often, such commodity franchises relate to the sale of:

• clothes.
• shoes.
• Food products. In this case, the franchisor is often large group companies, and the goods that are sold by its franchisee are made to order of the franchisor.
• Jewelry.
• Furniture, items for sleep.

The chain stores have general style and interior design, they are recognizable. There are standards regarding retail space, store location, other important points, which allow you to identify the TT as a store of a well-known chain.

Grocery stores, more often supermarkets, operating as franchises without a down payment and royalties often operate under a reverse franchise scheme. This means that they do not require an initial contribution and royalties, even often they are independently engaged in the selection of premises, staff training and other key points for launching a project. The franchisee in such a store no longer works as an individual entrepreneur, but as a manager. All proceeds are transferred to the parent company, which then transfers a certain percentage (15-25%) as an agency fee.

A franchise that offers a product and a name, in addition to the product itself, the franchisee also uses a well-known product brand. In the first case, this is also implied, but here everything is prescribed in the agreement.

Other franchise options, when a whole business concept is provided, operate on a "no investment" basis in exceptional cases, namely:

1. If there is a development of a new region. In order to get the much-desired expansion of the business, the franchisor has to sacrifice certain benefits. Such offers are rare, moreover, they are often offered to experienced businessmen who have achieved some success.
2. Investment by the franchisor. Such situations happen if the company practices the development of its own promising outlet directors (employees) to franchisees. In this case, there will also be no investments from the new partner.

Examples

It will not be superfluous to consider specific franchise offers without initial investments and / or royalties.

Furniture store Diso

You can open this franchise with only 500 thousand rubles, and this is a specific investment in the project. You don't have to pay a lump sum and don't pay royalties every month.

Other important conditions include:

1. Premises - from 40 sq. m., owned or long-term lease.
2. Availability of funds for investment in the specified amount.
3. The room should be located near a crowded place.
4. In order to successfully work on this proposal, the terms of the contract must be strictly observed.

The franchisor claims a payback of 6 months.

ALBA

The company is a manufacturer of high-quality classic shoes made of leather and suede. This product always in the price, which practically guarantees the success of the outlet. There are no fees and ongoing payments, the franchisee is required to:

• Find and repair a room.
• Purchase the necessary commercial equipment, produce technical equipment shop.
• The goods are provided on a commission basis, the amount of remuneration is determined in each individual case.

The franchisor offers comprehensive assistance. Including training of the franchisee and his staff. Store filling: the assortment is selected according to the size of the retail space and the marketing specifics of the region where the franchisee operates. To determine all these aspects, the project launch team travels to the new partner.

Orby

The Orby children's clothing franchise does not imply a lump-sum fee and royalties, but the investment to launch the project is at least 2.8 million rubles. Specific investments depend on the region and the size of the sales area. The latter, by the way, should not be less than 70 square meters.

Conditions:

• The retail space should be located in a category A shopping center, that is, a large one.
• It is obligatory to have a children's corner, a developing complex in the shopping center.
• Cooperation is possible only on the condition of full compliance with the clauses of the agreement.

Fabretti

The franchisor offers to sell fashion accessories. All that is needed to open this TT is to have funds for investments in the amount of 600 thousand to 1.5 million dollars. It all depends on the type of store. In the first case, this is an island in the shopping center, in the second, a full-fledged store at 25 m kV.

The franchisor's network sells only branded accessories and leather goods. The boutique is monobrand, that is, it represents only one brand.

Important! An interesting feature of this offer is the opportunity to purchase the first batch of goods in installments up to 6 months. That is, in fact, to start the project, only funds for renting the premises are needed.

Potential franchisees are required, in addition to the desire to work, also experience in retail business in fashion industry, it is desirable to have free funds to start the project.

Tom Farr

A fairly popular brand that has long been in demand in the CIS and Russia. Clothing collections are distinguished by individual style, relevance, original cut, convenience and affordable prices.

You can open stores of various formats under this brand without investments, which differ in area, investments to launch the project and a possible margin. What is interesting is that it is the franchisor who repairs the store and creates its corporate identity, and the design project is created absolutely free of charge.

Important! In the event of the formation of unsold remnants of past collections, they can be returned to the franchisor.

The work of each franchisee is supervised by a personal manager and merchandiser. There is access to hotline", and around the clock.

The scheme of franchising without investment

In fact, most royalty-free franchise offers work in a similar way, as follows:

1. The franchise agreement is signed.
2. The franchisee rents/buys the premises at his own expense.
3. Repairs are being made in accordance with the concept of the franchisor. Often this is also done by the franchisee, in some cases by the franchisor.
4. The purchase of commercial equipment, which is necessary to launch the project, is underway.
5. When all this is ready, the franchisor provides the first batch of goods. Often it can be purchased in installments, with payment in the course of work.
6. Further, the purchase of goods occurs at a certain frequency. For grocery stores- in 2-3 days or 1 time per week. For shoe clothing stores every month or 1 time per season.

Of course, in the process of work, the franchisee must comply with the standards of work, customer service, maintain a corporate style in design, participate in promotions and advertising campaigns.

Conclusion

As you can see, in its pure form, franchises without investments do not exist. Although there are quite profitable offers that do not involve making a lump-sum fee and monthly deductions in the form of royalties. All offers of franchisors where they promise no investments should be treated carefully, carefully rechecked.

Franchise from scratch without investments - it sounds tempting, but is it real? In most cases, the purpose of entrepreneurship is to make a profit. Consider a businessman who created a company from scratch, established a business process, business connections, made his product or service recognizable and in demand among the target audience. Will he want to give all this to a stranger without compensation, without receiving any benefit? The answer is obvious.
To receive the product, you need to pay a fee for it. A franchise is a product that is presented as a set of benefits, including trademark, business model, marketing and economic plan. It is impossible to get a really working franchise without investments and costs. Therefore, the answer to the question of how to open a franchise business without investments, the answer is no way.
Next, we will look at what is actually meant by a “franchise without investments” and how to choose a really working project with minimal costs.

How to open a franchise without investment

A franchise without investments is a business project that implies the absence of a lump-sum fee and regular payment of royalties to the franchisor. You will have to invest in the arrangement of the outlet, the purchase of goods and related equipment on your own. The franchisor can provide loyal conditions for the supply of goods, a deferment in payment of its cost, as well as favorable conditions for the purchase of equipment.
The best and most common variant of the so-called franchise without investments is the opening of a retail outlet for the sale of goods produced by the franchisor. This type of cooperation is beneficial to the franchisor due to the increase in its wholesale sales, the profit from which covers the lack of additional payments from the franchisee.
Also, the costs of organizing a business can be avoided if the franchisor plans to open a branch in the regions or abroad in order to expand the company and its network. In this case, the franchisor can cover all the costs of opening a point, but at the same time, the business will entrust only an experienced businessman who can bring profit to the open point and not spoil the company's reputation.

Benefits of a franchise without investment

Opening a franchise business without investing in lump-sum payments and royalties is most reliable in the field of trade. A franchise without investments for the sale of goods has a number of advantages:

• trade point with a name known to consumers;
• loyal target audience;
• a product that is popular with consumers and does not require promotion;
• favorable conditions for the supply of goods.

Also, the franchisee can provide a deferment to pay for the purchased goods, which is an important bonus at the initial stage of business development.

Disadvantages of a franchise without investment

Free franchises for beginners without investment have more risks than benefits. If you decide to open a business, a franchise without investment may turn out to be a fraudulent scheme on the part of an unscrupulous franchisor.
The reality is that the market today is brimming with seemingly tempting franchise offers that will bring nothing but losses and debt obligations. Therefore, before signing a franchise agreement, carefully study all the conditions together with a trusted lawyer.
Another disadvantage is the high competition as franchises gain more and more popularity. Favorable franchising conditions and minimum costs lead to high competition in the chosen industry.

How to reduce startup costs

To explain how to reduce costs at the initial stage of creating a business, consider the example of opening a retail outlet. You will reduce start-up costs if:

1. Agree on the timing of the sale of the purchased goods in order to avoid stagnation and delay.
2. Analyze target audience and make a sales forecast.
3. Discuss with the franchisor the required volumes of supplies of goods.
4. Consider advertising costs.
5. Agree with the franchisor on the grace period at the initial stage.
6. Agree with the franchisor on the possibility of taking the goods on credit.

Franchises without investments for beginners

Free franchises without investment for novice businessmen carry many risks associated with a lack of experience and knowledge of the specifics of the activity, as well as insufficient legal literacy for a detailed study of the contract.
We recommend that novice businessmen pay attention to low-budget, but not free franchises, which require comprehensive support from the franchisor. This will help the inexperienced franchisee build profitable business. Without the necessary knowledge, it is difficult to understand whether it is worth starting work on the chosen franchise, how effective the business project is, whether it will bring benefits.
We suggest that you familiarize yourself with the offers of franchisors who do not take a lump-sum fee and royalties, but at the same time investments will be required to start a business.

Catalog of franchises without investments in Russia

Consider the franchises that actually work in the Russian Federation without investments in 2018, which do not require payment of a lump-sum fee and royalties:

• Tandoor Bread is a bakery operating since 1985 with 75 franchise partners. There are no lump-sum payments or royalties. Capital investments of 200 thousand rubles. Payback period is 2-3 months.
• AKKOND is a confectionery distribution network that has been operating since 1943 and has 270 partners. There are no royalties or lump-sum payments. Starting investment 450 thousand rubles.
• Sea of ​​Tea - a chain of tea shops with 50 own points and 8 franchises. There are no royalties or lump-sum payments. Investments of 500 thousand rubles for the purchase of goods, equipment and store design.
• Perrino is a sales outlet for sleep products. It has been operating since 2004, has 25 own outlets and 178 franchise outlets. There is no royalty or entry fee. Investments 500 thousand rubles. Payback period 3 months.
• SAMURA is a branded knife store from Japan. It has 124 franchise partners. Investments amount to 300 thousand rubles. There are no other additional costs.

Catalog of franchises without investments in Belarus

Actual franchise offers without large investments Money, which are presented for the market of Belarus:

• tamm'antimebel is a network of retail outlets selling original design furniture. The company has been operating since 2003 and promises a payback of the project in 3 months. Investments 49-750 thousand rubles. There is no royalty or entry fee.
• SILVER SPOON is a retail outlet selling branded children's clothing. There are no royalties or lump-sum payments. Investments 350 thousand rubles.
• Mangosteen is a network of vending machines with children's toys, souvenirs and jewelry. Investments 240 thousand rubles. There are no additional payments.
• Kitchens VARDEK is a network of furniture kitchen showrooms. Investments amount to 150-500 thousand rubles. There are no additional payments. Payback period 1-2 months.
• Ringing Cedars is a retail outlet for the sale of cedar products.
  There are no royalties or lump-sum payments. Investments of 120 thousand rubles. The payback period of the project is 2-4 months.

In conclusion, we note that it is impossible to buy a franchise without investments, so it will not be possible to completely avoid expenses. When choosing a cheap franchise, be careful and study the terms of the contract in detail. Even before signing it, read the opinions of other franchisees working with your chosen company and make sure whether the project is profitable and whether it is worth opening a business on it.

Opening your own business on a ready-made business model using the opportunities that a promoted and well-known brand provides, while at the same time with minimal own investments, is the dream of many aspiring entrepreneurs. This opportunity is provided by a franchise (franchising).

Franchise - description

A franchise (from the French franchise - a benefit) is a set of services provided on certain conditions for opening and running a business. Includes the granting of rights to use the brand, ways of doing business.

As a franchise, registered trademarks, proven business methods, various technologies can be transferred. Obligations between the transferring party (franchisor) and the receiving party (franchisee) are formalized by a franchise agreement.

Simplifying specific terms, franchising is a type of trademark lease, as well as a kind of obtaining a license for the right to use a ready-made business model.

Its useful to note: contractual obligations, as a rule, provide for a reimbursable transfer of rights, called royalties - that is, rent. By Russian laws Franchising is governed by a commercial concession agreement.

Franchise categories

1. Franchise in trade services. The application of the franchising method in retail trade is fast way promoting your own business, reducing the time for accumulation initial capital. This method is suitable for novice entrepreneurs and large players.

The most demanded directions:

• sale of fashionable clothes;
• sale of children's goods;
• food products;
• construction and finishing materials;
• spare parts for vehicles;
• cosmetics.

2. Franchise in catering. It has a fairly high level of income, but requires significant financial investments.

Steady demand is noted:

• coffee houses stationary and mobile;
• pizzerias;
• fast food systems
• fast food;
• pancakes;
• sushi.

3. Franchise in the service sector. This business differs in its specificity, as services are sold first of all. Examples: beauty salon, car rental, advertising agencies full cycle and other directions.

4. Franchise in IT technologies. A dynamically developing branch of the economy. Requires knowledge related to the virtual world. Examples: a web studio for creating and promoting websites different orientation, Internet reference agency.

5. Franchise in production. One of the most difficult activities. Significant initial investment required. They are distinguished by high lump-sum contributions and regular royalties. At the same time, there is a clear business development strategy, a high degree of investment reliability, and constant support from the parent company.

Franchise: free offers

From the very beginning of its inception, franchising has implied certain initial investments by the host partner (franchisee), a lump-sum fee. This payment is a one-time fee for the right to enter the market with a particular brand. In addition, franchising is the receipt of regular rental payments (royalties).

On the territory of Russia, there are companies offering a franchise without initial fees and subsequent royalties. These are various travel agencies, cosmetic companies, firms selling printed products, tobacco products other.

How does this happen in practice?

The parent company, interested in the presence on the market of any region, concludes an agreement with a regional partner, who undertakes to represent the interests of the franchisor, provide services or sell its products. That is, in fact, it becomes a distributor of a superior company.

Is there a franchise without investments?

The development of competition in the market caused the appearance of proposals for the acquisition of a franchise without initial investment from the franchisee.

What is a franchise without investment?

franchise focused on retail, is built on partnerships between the franchisor and the franchisee.

For this, an agreement is made with individual, who performs the duties of the director of the company representing the interests of the parent company in the region. At the same time, this person becomes a partner of the company.

According to the concluded agreement, the director pursues the interests of the franchisor, while not deviating from the general concept of business development, there are restrictions on the choice of suppliers, regulation of costs and other main activities.

The task of the franchisee is to collect required documents, selection of premises, marketing. Registration trading floors and filling with goods is the prerogative of the parent company. The franchisee becomes a full partner in 1 ... 2 years, provided successful work divisions.

Outcome: in the literal sense of the word, a franchise without investments is a branch of the company, where all costs are borne by the parent company. From the partner-performer, only his work is required.

Companies offering partnerships without investment

The list of companies offering these types of partnerships can include different kinds retail chains selling a wide range of consumer goods. In addition to them, their branches on similar conditions, organize travel agencies, recruiting firms.

Anonymized, companies can be combined into several groups:

1. The investor is the parent company, the franchisor, bearing all financial and material costs. The director of the branch, the franchisee, works under an agreement that provides for the possibility of transferring the business into ownership in case of its successful development.
2. The investor is a third party. Her interest is to receive income from free accumulated capital. An investment bank or fund acts as a financier.
3. The investor is a network marketing promotion firm. Uses the personal qualities of the attracted personnel to promote its brand and products.
4. No lump sum. Financial interest is embedded in the cost of products sold. Except trading companies, this type of franchise is practiced by manufacturers.

Negative aspects of agreements "without investments"

The phrase, “franchise without investment,” looks very attractive, but it can hide negative points.

The most common:

1. Reassessing your strengths at the initial stage, leads to loss of time, effort and in end result, loss of business as a direction.
2. Tricks of lawyers, constituting the contract in such a way that it contains initially impossible requirements. The result is wasted labor and a sense of deception. To avoid such errors, it is necessary to carefully approach the study of signed documents.

No down payment

No initial deposit- this is a high probability that the franchisor is interested in promoting its brand, goods and services in the regional market. That is, he is ready to incur material costs when opening a branch of the company and reimburse them in the process of business development.

From here, mutually beneficial cooperation arises: the franchisor receives an additional source of income, and the franchisee, with almost no initial costs, has own business, supported by a ready-made model of its management and a promoted brand.

In what cases can you find franchise offers without initial investment?

The most likely options for the absence of initial investments is the desire of the parent company to promote its brand to the market of a particular region, that is, to carry out branding.

Another variant is the sale of their own products. Here, a franchise is like looking for a dealer or distributor.

Remotely, a franchise without investments resembles network marketing. But there are many fraudulent schemes and deceit.

The absence of a lump-sum contribution and royalties is a myth or a reality?

By studying the market, analyzing offers on the market and taking into account your own experience, we can conclude that the absence of initial costs and subsequent periodic payments has the right to exist.

But there are a number of requirements, restrictions, for example:

1. none big company, which owns well-known brands, and, accordingly, goods, will not enter into an agreement with an unknown person or company that does not own certain tangible assets or guarantees from insurance companies. The conclusion is simple - if there is a desire to cooperate with such organizations and thereby exploit the "trademark" sign, then to reinforce the seriousness of intentions, it is necessary to invest in this type of business at the initial stage.
2. The absence of a lump-sum contribution and royalties also implies the removal of some responsibility from the parent company, which implies a large future investment by the franchisee. That is, the purchase of goods, advertising campaigns, transportation costs and others will fall entirely on the shoulders of the receiving party.
3. Existing business, for example, a store, cafe, beauty salon - this is a guarantee that, with a greater degree of probability, there will be no initial fee and reduced royalties.