Overview of the Ukrainian market of franchising - the first quarter of 2009
Lack of legal framework does not prevent the development of franchise systems in Ukraine. At the same time, the question of quantity and quality of this development remains an open question.
According to the results of 2008 in Ukraine Franchising evolved in such industries as manufacturing, trade, restaurants, fast food and services.
The number of Ukrainian companies, which in any way expressed himself as Franchisor - about 300.
The total market overview
In terms of the number of Ukrainian companies have claimed positive trend, but given that a number of companies that have suspended their development of franchising, the key changes have occurred. Number of companies claimed to be the same - about 300.
Really working and most of the essence of franchising - approximately 30 companies. The main reason - a lack of margin development branch network and a network of franchising and its fundamental differences.
Key positions in the development of franchising systems are companies, who are Master Franchisee and are in the Ukrainian market of Western franchises, experience and international standards.
The market leader in franchising for the development and cash flow are the same companies - representing Western goods and services, namely: Coca Cola, Pepsi, Carlsberg, SI (Sun Interbru), TNK-BP, Lukoil, Empik, Liga Invest, Delta Sport, and the Ukrainian company Franchisor - FFS (Fast Food systems). The turnover of leaders is about $ 850 million per 2008 year.
Number of staff who works with Franchisor and franchisees - over 200 thousand.
In the first quarter of 2009, some Franchisors halted its development program. This primarily affected the companies, where the concept of the business were not good, not worked out the strategy and the process of finding franchisees, as well as promoting their own franchises.
The drop in earnings in the middle and premium segment catering at 30-40%%. The fall in the networks of supermarkets is about 50%, which led many networks to the bankruptcy and the sale of its assets. In the field of construction and building materials - by 60-80%%.
Type of franchising, where the companies used its best efforts so far have remained unchanged, namely: 1. Production; 2. Trade; 3. service; 4. franchising of business format;
Such a conversion, corporate and sub-franchising yet remained unheeded by the Ukrainian Franchisors.
Industries are beginning to expand the use of franchising. Thus, if in 2008 they were 12-15 (trade, restaurants, beverages, vending, services), then in 2009 expanded to 20 because there were suggestions of Ukrainian companies in the hotel sector, health and children, design and architecture, distribution, tourism, personnel agencies.
Franchisee (investors) have also increased their activity. For example, if the Triarh Ltd in 2008 received 523 request for the purchase of any franchises, in the first quarter of 2009, already 456 requests, that almost four times higher than the previous year.
Legislative base of franchising in 2008 not been changed by the state, but the ship is beginning to understand the practice of the difference between a contract of «commercial concession» and the «License agreement». This makes Franchisors to draw attention to their contractual basis, and appeal to the experts for the preparation of contracts, as well as the methodology of our work in difficult conditions, lack of registration data contracts.
Attempts to group companies (Triarh, Vasil Kisil & Partners and others) lobby registration commercial concession contracts has been inconclusive. A positive trend is that the round tables and meetings with government officials have the opportunity to bring awareness of the importance of the concept of «franchise» for the Ukrainian economy and enterprise development in the Ukraine.
Many leading world brands have set up offices in the territory of Ukraine to monitor the protection of intellectual property.
Personnel for franchising remain the key. If the word «franchise» is not a cause of bewilderment and questions, the essence and standards of franchising are still inaccessible to the majority of managers of companies that declared themselves to the Franchisor.
