Open a franchise business without investment. Opening a franchise without investment. Choosing a franchise without royalties and lump-sum payments. Benefits of a franchise without investment

They face a choice - to create something of their own or to use an existing business model. For those who want to take advantage of an already debugged and profitable idea, there is the possibility of acquiring a franchise.

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Franchise- a set of a brand, a business plan, the procedure for creating and developing an enterprise, special technologies and other necessary elements for creating a profitable enterprise, which are acquired for a certain fee and future deductions.

With initial capital and the absence of your own unique idea Is the best starting strategy own business, but in case of insufficient funds, it is worth looking for franchise options without investments or with their minimum.

There are several possible options franchises without start-up capital:

1. Franchiser-investor- a company that provides a franchise, its funds for the creation and development of a franchisee on its own terms.
2. - a third party. The idea of ​​opening a franchise enterprise is an investor on certain conditions of return on investment with interest, equity participation and the ability to manage.
3. Network marketing (investor and supplier of goods)- the concept of distribution of goods and services by creating a network of sellers, which is ordered into a certain hierarchical structure of income generation. It is not literally a franchise, but it has a number of similar elements.
4. Little or no cost- initial costs can be dispensed with in only a few areas that do not require material reinforcement (services, B2B, distribution of goods).
5. No lump-sum payment (for work in the brand network)- can be considered as a franchise without investments, since there is no need to pay for starting work under a well-known brand.

Requirements for candidates

Since a franchise is considered without investments, an investor or franchisor can put forward a number of conditions for the characteristics of a novice entrepreneur, namely:

• personal;
• organizational;
• entrepreneurial;
• the presence of a unique or advantageous offer;
• territorial;

Let's consider in more detail each point of the candidate's qualities.

The criteria for personality traits can be as follows:

• hard work;
• interest in the case;
• charisma;
• consistency in their actions and others;

The organizational features required are as follows:

• the ability to attract the right people to work;
• ability to work with staff;
• ability to keep records;
• legal literacy for legal and problem-free business management;
• successful communication skills;

Entrepreneurial qualities can be expressed in the following criteria:

• experience in creating and managing your own business;
• experience in managing someone else's enterprise;
• successful sales and marketing skills;
• a high-quality business plan or presentation with compelling development data provided;

A unique or advantageous offer can be:

• selected inexpensive premises for the enterprise;
• the presence of a ready-made team of like-minded people or subordinates;
• personal connections that will help you develop more successfully;
• personal talents and skills useful for the business;
• availability of its own base of potential customers;

The territorial aspect is expressed in residence or willingness to move to a region suitable for opening a company (most often these are cities with a population of more than 300 thousand people).

Implementation procedure

Before starting work, a contract is concluded, which stipulates the conditions:

• granting a franchise;
• the amount of interest payments;
• terms and conditions for the transfer of full rights to the enterprise;

After obtaining a franchise, it is necessary to fulfill a number of conditions that the franchisor puts forward to ensure:

• premises in accordance with the requirements of the company;
• documentary support for the creation of an enterprise and auxiliary processes;
• delivery of goods;
• advertising;
• sales;
• making a profit;

At the same time, his status is partner (with the minimum right to influence the system) and resembles the status of an ordinary manager or junior partner.

Such a junior partner has the right to:

• Regulate financial flows(within limited limits).
• Manage ads.
• Manage the supply of goods.
• Manage staff.

The junior partner is not entitled to:

1. Change company policy.
2. Freely choose suppliers and products.
3. Completely manage the company's finances.

The franchisee fulfills its obligations and the ability to:

• design and preparation of premises for the start of work;
• personnel training in accordance with corporate requirements;
• provision of equipment and raw materials;

Franchisor company and network marketing as an investor

To receive investment from franchising, you need to go through several stages:

1. Work for a franchisor company.
2. Get a management position.
3. Show yourself as positive, successful and talented person that can be trusted to manage and own the franchisee.
4. Convince the owners or top managers of the company to grant a franchise or transfer a branch of the company for management.
5. Become a partner of the company or the owner of a separate business outlet.

Attracting an outside investor

It is much easier to attract an investor to finance the creation of a franchise venture than to other ideas.

The benefits of risk assessment for an investor are obvious:

1. A franchise implies a well-established scheme of activities that protects against mistakes of a beginner.
2. There is an opportunity to study the indicators of profitability, payback and success of other similar enterprises opened under a franchise.
3. The presence of a well-known brand, which naturally attracts additional customers.

To convince an investor to invest funds, it is necessary:

1. Show on specific examples the success of the franchise company.
2. Show ready-made business plan, which was approved by the company, and to convince of the profitability of work in this direction.
3. Demonstrate specific conditions for working with a franchising company, which can reduce costs in case of negative results of the company.
4. Outline the terms and conditions under which you become a full-fledged owner of the enterprise (full payment of interest, the entire amount of investment).

To attract an investor, it is necessary to offer favorable conditions for him:

• taking all the risks of entrepreneurship on oneself;
• guarantee the smooth operation of the enterprise;
• addiction wages from the results of activities;
• a controlling stake in the property belongs to the investor;
• the investor's share is redeemed at a predetermined price within a certain period;
• interest payments on invested funds must exceed the market average;

Network Marketing Company

Working in the network marketing system allows at first to simply earn money, and after creating your own distributor network - to be a successful entrepreneur.

The company provides the entrepreneur with:

• education;
• a simple and understandable model of work;
• recognizable brand;
• product catalogs;
• the ability to work without personal investment;
• income as a percentage of sales;

Working in such an enterprise makes it possible to develop certain qualities that are necessary to get started:

• high level of sociability;
• ability to promote and sell products;
• high responsibility for the results of their activities;
• discipline;

How to minimize investment?

It is possible to reduce costs when opening a franchise enterprise if:

• no down payment;
• no lump-sum payment;
• no royalties;
• there is no need for the cost of purchasing products;

This is possible in several areas of the economy:

• services;
• distribution of goods without direct contact with the products;
• B2B sector (services for enterprises);

Also, preferential terms can be obtained from a developing company that has not yet franchised its brand. If you manage to become the first, you can get exclusive conditions.

No lump-sum payment

This type of work can be thought of as starting work without a down payment. This model is typical for enterprises that profit from the value of the goods shipped.

These companies operate in two ways:

1. Deferral of payment for the goods.
2. Delivery of goods for sale (most suitable for entrepreneurs who want to expand their existing business).

Negative sides of "no investment" agreements

The negative aspects of such a transaction can be:

1. Fraudulent schemes- it is necessary to carefully study the terms of the transaction and those who offer it.
2. Contract conditions undesirable to the entrepreneur- protection can only be a thorough study of the contract and consultation with a qualified and trustworthy lawyer.

Franchise catalog without investment or without a lump-sum fee

conclusions

1. Choose the type of franchise that suits you best and where you can realize yourself.
2. Study specific franchise offers and check with a specific franchise specialist for a specific company.
3. with mandatory subparagraphs: planned sales volumes, level of profitability, return on investment.
4. Find an investor and get interested in this area.
5. Carefully study the contract and all the terms of the transaction in order to avoid fraud.
6. Carry out preparatory work (search for premises, paperwork, staff training).
7. Start a franchise business.

A franchise without investment is the dream of any entrepreneur. When working on such a scheme, there is practically nothing to spend. There is a well-known brand, by concluding an agreement with it, you can work, while no deductions of any payments are required - work and earn. This is how the franchisee sees such a proposal, but often a franchise without investments for implementation implies the purchase of goods and the franchisor-manufacturer.

Popularity, number of offers on the market

Offers from franchisers with promising "no investment" are very numerous, but it should be understood that it will hardly be possible to do without financial investments. Well, think about who will offer your popular brand, or rather the right to work under it, will give you a scheme for launching a new outlet and will do its best to help development if it does not receive financial gratitude for it. The logical answer is that no one, in any case, benefits for the franchisor in such cooperation.

Important! If the franchisor says that he does not require a lump-sum payment of regular royalty payments, this does not mean that the perfect one will not have to invest anything. Often, the contract of such a franchise without investment implies the obligatory purchase of a certain, previously agreed upon, volume of goods that the franchisor produces.

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

It should be understood that it is not very easy to start such a business in the sense that many risks lie in wait for those who want to “not get their feet wet and catch a fish,” among the most common problems:

1. Lots of fraudulent schemes. The terms of the contract are sometimes so specific. What to call this type of business such that does not require investment, it is impossible. For example, in separate agreements there are clauses that the premises for doing business must be owned or bought immediately after signing the franchise agreement. Definitely - this is an unprofitable offer, and a deception, therefore, before signing any agreement, you should show the agreement to an experienced lawyer.
2. Competition. Although there are real proposals of this kind, there are not enough of them for all, which means that for each contract there will be a real struggle between potential franchisees.
3. The agreements may include deliberately unfavorable terms for the franchisee. For example, too large consignments of procurement 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 you agree to a small business franchise without the investment, you should determine what benefits the franchisor will receive, it should be obvious. If this is not the case, then surprises may arise on the way to launch the project or its work.

What types and types of franchises are most often without investment

Not every franchisor is ready to offer its franchise without requiring initial and ongoing payments. There are specific types and types that can work in 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 product franchises relate to the sale:

• Clothes.
• Shine.
• Food products. In this case, the franchisor is often a large group of companies, and the goods sold by his franchisee are made to order from the franchisor.
• Jewelry.
• Furniture, items for sleeping.

The stores of the chain have a common style and interior design, they are recognizable. There are standards regarding the occupied retail space, the location of the store, and other important points that allow TT to be identified as a store of a well-known chain.

Grocery stores, more often supermarkets that operate as franchises without an upfront fee and royalty, often operate under a reverse franchise scheme. It means that they do not require a down payment and royalties, even often they are independently engaged in the selection of premises, personnel 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 spelled out in the agreement.

Other options for franchises, when a whole business concept is provided, work on the principle of "no investment" in exceptional cases, namely:

1. If there is a development of a new region. In order to get the much-desired business expansion, the franchisor has to sacrifice a certain benefit. 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 prospective directors of outlets (employees) to franchisees. In this case, there will be no investments from the new partner either.

Examples of

It will not be superfluous to consider specific proposals for franchises without initial investment and / or royalties.

Diso Furniture Store

You can open this franchise with only 500 thousand rubles and this is a specific investment in the project. Pay a lump-sum fee and no royalties are required every month.

Other important conditions include:

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

The franchisor declares a payback of 6 months.

ALBA

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

• Find and renovate a room.
• Purchase the necessary retail store equipment, make the technical equipment of the store.
• 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 himself and his staff. Filling the store: 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 teams visit the new partner.

Orby

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

Conditions:

• The retail space should be located in a shopping center of category A, that is, a large one.
• There must be a children's corner in the shopping center, a developing complex.
• Cooperation is possible only on 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 format of the store. In the first case, it is an island in the shopping center, in the second, a full-fledged store of 25 m kV.

Only branded accessories and leather goods are sold in the franchisor's network. The boutique is mono-brand, that is, it contains only one trademark.

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

In addition to the desire to work, potential franchisees are required to have experience in running a retail business in the fashion industry, it is desirable to have free funds to launch the project.

Tom farr

A fairly popular brand that has long been in demand in the vastness of the CIS and Russia. Collections of clothing are distinguished by their individual style, relevance, original cut, convenience and affordable prices.

It is possible to open stores of different formats under this trademark without investments, which differ in area, investments for launching the project and a possible margin. What is interesting is repairing the store and creating form style his is the franchisor, and the design project is created absolutely free of charge.

Important! In the event of the formation of unrealized 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.

Franchising scheme without investment

In fact, most of the royalty-free franchise offerings work in a similar fashion, namely:

1. A franchise agreement is signed.
2. At its own expense, the franchisee rents / buys premises.
3. Renovation is carried out in accordance with the concept of the franchisor. Often this is also done by the franchisee, in some cases the franchisor.
4. The purchase of commercial equipment, which is necessary for the launch of the project, is being carried out.
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 - after 2-3 days or once a week. For clothing stores, footwear every month or once a season.

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

Conclusion

As seen in pure form franchises without investments do not exist. Although there are quite lucrative offers that do not imply a lump-sum fee and monthly royalties. All offers of franchisors where they promise no investment should be treated carefully, carefully rechecked.

Please see the list of no-investment franchises. Only those franchises that do not have a down payment are selected in this list. This does not mean that your business will work without investment at all. You just don't have to pay a down payment.

If you liked any franchise without investments from the list, and you want to learn more about it, please contact the franchisor directly using the convenient feedback form 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 quality support of the franchisor in solving organizational issues. The business plan, which they will help you to draw up, will make your work on a franchise without investments pleasant, and most importantly profitable.

Please check out our no-investment franchise reviews:

List of franchises without investment

Below we have selected for you several no-investment franchises that may be of interest to you. Please read them.

The opportunity to do business, especially without investment, is also under famous brand is a dream for any potential entrepreneur. And in connection with the times of crisis, there are more and more such “dreamers”. In principle, such people can be understood: they are convinced that their business will allow them to feel in "economic security" and be free, both in money and in time.

However, these claims are a common misconception. An entrepreneur is a person who takes a certain risk, from which many people working "for an uncle" are insured. This danger lies in the fact that a businessman may receive his profit at the end of a certain period, or may remain at the “broken trough”. While a simple employee working for a stranger, in any case, will receive a reward for his work. Moreover, the working day for the owner of his own business begins early in the morning and ends closer to the night, in contrast to the usual office plankton schedule "from 9 to 6".

But if you are not afraid of the everyday life of entrepreneurs, and you are eager to try yourself in their role, then you should pay attention to the franchise business.

This scheme is convenient especially for beginners, since it allows you to reduce risks at the initial stage of work.

To open a franchise, you need to buy it. It would seem logical, because the company, having provided the franchisee with a brand, a business scheme perfected over the years and a unique product, cannot engage in altruism and is waiting for mutually beneficial cooperation with a partner.

But what if a potential entrepreneur has no initial capital? Look for him. Because there are no franchises at all without investments. At least such cooperation schemes are not created by successful companies. And working only with proven brands will help build a truly profitable business.

As the representative of the franchisor company correctly noted "Doors Granite" Petr Strukov: “If a person does not invest his own money in the business, then there will be much less motivation to work for the good of the company, therefore we work with our partners only“ in money ”. There are many young and energetic start-ups on the market today who want to try their hand at business. Whether they will succeed or not is a question. But hardly a percentage successful projects will be high and closing retail outlets can damage the reputation of the entire company as a whole. Therefore, we respect ourselves and our partners, and do not undermine the foundations of the business. "

Nevertheless, there are ways that allow you to minimize the amount of money that is required to open a franchise business.

These offers from franchisors include:

• Commodity credit
• Special promotions for an easy business start
• Dealership

​​​​​​​Goods for sale

That is, the franchisee must pay for the repair and rental of the premises, as well as purchase commercial equipment, after which the franchisor provides him with a deferred payment for the purchase of goods for a certain period established by the contract. Moreover, each company differs not only in terms and conditions, but also in the wording of such "concessions" for partners.

So, for example, the company “ ALBA " It provides new partners with goods on a commission, due to which the costs of opening a new store under the guise of a popular shoe brand are reduced from 7 million rubles to 2.5 million, which means that a novice entrepreneur will only need funds for renting and finishing the premises for the store.

The company provides payment by installments up to 180 days, and the Polish clothing brand buys unsold leftovers from their franchisees, thereby saving working capital point of sale. A well-known chain of stores also promises a commodity loan for its partners. And representatives of the brand of leather goods " LABBRA " make it possible to use an interest-free commodity limit for opening a retail outlet for a period of 60 days.

Deferred payment for products is also provided by food manufacturers. True, such conditions are available only for well-proven partners. For example, an ice cream trade mark ships goods with a delay of two weeks, and new partners, when ordering equipment for a retail outlet, can pay only 50% of the cost, the rest of the amount can be paid to the franchisor upon receipt of material values.

But in order to enjoy all the joys of commodity credit, it is necessary to find cash to open retail outlets. Meanwhile, there are companies that have foreseen this fact and offer novice entrepreneurs to test their capabilities by opening a business on a "lightweight" version of the franchise.

Easy start

There are franchise offers that allow you to start a business under the brand name of a large company at a special price.

Such promotions are typical for both large industrial enterprises and ordinary Internet services.

For example, a company EKOPAN, a manufacturer of houses from SIP panels, offers to start a business in his region for only 250 thousand rubles. This format will allow you to receive orders for the construction of houses, send them to manufacturers and earn quite decently on a percentage of orders. The main requirement is the ability to work with the customer. In the future, a partner of the company can develop his business to a full-fledged production of houses from SIP panels.

There are similar offers in clothing retail: for example, a manufacturer of designer clothes "BRUSNIKA" offers to start your business by opening a "corner" - a small exhibition stand in an already operating clothing store. The required area is from 25 square meters, and the investment is minimal: from 300 thousand rubles.

Internet service franchises and mobile applications also differ in reasonable prices, and the opening this business does not imply investment in renting office space.

So, for example, representatives of the Internet service " CleanWell " call their business "home" and promise a monthly income of at least 100 thousand rubles, with an initial investment of 106 thousand rubles.

And for those who want to open their business on more tangible things with minimal investment, it is worth trying themselves as regional dealers.

Dealership

Any manufacturer wishing to enter federal level, is looking for its representatives in each region, who would take upon themselves the responsibility of selling the product in the territory entrusted to them.

But manufacturers of really necessary goods that are in demand most often turn to large wholesale companies, and they are not interested in small players.

Still, there are franchisor companies offering potential partners to try out a business niche using a dealer scheme. This is, for example, a well-known manufacturer of office furniture. "Felix". The company offers potential partners two development schemes: franchise and dealership. Moreover, the last category does not imply the opening of the Felix brand store. , but simply gives you the opportunity to sell furniture from a manufacturing company in your store. The franchisee more possibilities: The whole range of factory products, after-sales service and signage with famous brand. Therefore, according to the representative of the franchisor, many dealers of "Felix" subsequently become their franchisees.

The company operates in approximately the same way. "Karelian Monument". To become a partner manufacturing enterprise for the manufacture of monuments and products from granite, you need to rent a room and purchase exhibition samples, and the volume of required investments does not exceed 150 thousand rubles. The task of the franchisee is to ensure a stable flow of orders for the production of the enterprise. Well-established partners, the franchisor also periodically gives bonuses and provides some product samples for free.

So, the main thing is to treat your business responsibly, and then your partner will help you with all his might, since the prosperity of the franchisor depends on the well-being of your enterprise.

Most of the projects in the business world often remain unfulfilled due to the lack of funds to start a company. Even the most relevant and unique idea requires monetary reinforcement, otherwise it will be possible to earn money only by selling it. A good way out in this situation is such an activity as a franchise without investments for implementation. Where to find it and how to choose it, it will be useful for novice businessmen to know.

The essence of franchising is to transfer for use for some fee already finished model business, which includes:

• brand;
• ways of organizing and conducting business;
• advertising;
• education;
• established channels for the supply of raw materials.

Considering the fact that the sellers of the franchise are already experienced companies, we can say that the newcomer, along with all this, also receives target audience who is already familiar with the proposed product. The players in such a business model transfer transaction are considered to be:

• franchisor - seller;
• franchisee - buyer.

The down payment on the sale of a franchise is called a lump sum. Its amount and payment procedure is determined personally by the franchisor. Many companies meet customers halfway and offer installments. Its amount can range from several hundred dollars to several hundred thousand.

In addition, the user of the business model will have to pay royalties to the franchisor on a monthly basis, which is a payment for comprehensive support and assistance in doing business.

What is a franchise without investment

Sometimes it happens that a successful company is interested in the presence of its branch in a certain region. In this case, she selects a regional partner who is provided with a franchise for the sale of goods without investment. In other words, such a representative acts as a distributor.

Cooperation is carried out on the basis of an agreement, according to which the regional partner is the director of the company representing the interests of the head office in the region. At the same time, he also becomes a partner working under a franchise scheme, that is, without departing from the established model of this way of doing business:

• complies with the general concept of the enterprise;
• cooperates with suppliers specified in the contract;
• produces only the product or service that the franchisor wants to see on the market.

A franchise without an initial investment is, as a rule, an opportunity not to pay the seller an initial fee. But this becomes possible only if certain conditions are met:

1. Some of the initial costs of launching a company are covered by the franchisee himself. This includes the rental and renovation of premises, training of employees.
2. Self-registration of business in authorized bodies.
3. Search for sales channels.

Filling of sales areas and delivery of goods is usually handled by the head office.

Ways to get a franchise without start-up capital

A franchise from scratch without investment can be presented in several options. One of them, as already mentioned, is the entry of a successful company into new markets in new regions. In this case, she herself is interested in finding such partners.

But there are a number of other cases when you can become an entrepreneur without having any start-up funds:

• opening a company as a result of working as a hired employee with a franchisor. This path provides an opportunity to enter the world of business not only for those who have no money, but also for those who do not have at least minimal experience. Many large companies offer their employees special programs that allow them to grow into self-employed entrepreneurs. An employee who has completed such training and has already gained experience gets the opportunity to develop a completely independent unit of the company as a franchisee;
• receiving funds from private equity funds. Some such organizations themselves offer successful directors of, say, stores, to open a franchise without investment with the participation of a fund. The benefits of such a scheme are obvious - the fund reduces the risk, since it knows the franchisors well and at the same time carefully selects the franchisees. All financial expenses in this type of cooperation fall on the fund;
• development of a distribution network. This model is especially typical for retail when a widely promoted brand attracts small entrepreneurs to cooperation in the field of retail. At the same time, the development model of a network of online stores is becoming quite popular, when the franchisee receives the goods only upon sale. In this case, there is no need to rent a hall or shopping room... It is enough just to equip an office for a call-center. Usually used when the franchisor intends to as soon as possible increase the number of sales of your products.
• network marketing. Please note: this model as a franchise business without investment will become such if the franchisee is registered as an individual entrepreneur. Otherwise, it will be considered a regular freelance;
• franchise in installments without a down payment is also the most common in the field retail sales... In this case, it is assumed that the lump-sum installment will be split over several pay periods. A variation of this way of doing business is the provision of goods for sale. Its peculiarity is that it can turn out to be both very profitable and completely ineffective.

Other options that will not require significant costs from the franchisee include:

• opening of sports sections, children's clubs, training centers... Most often, the franchisor will insist on the availability of specialized education and work experience;
• launching a specific type of business. This option takes place when the franchisor introduces a service or product to the market that only a specialist in this area can work with. Under such circumstances, the franchisee's special knowledge and experience becomes a priority over his financial capabilities;
• A franchise business without investments is also possible when the seller of the business model is still unknown on the market, and therefore he is ready to distribute the first franchises for free, just to quickly develop the network.

How to get a business model

Offers from large companies, of course, are very difficult to find just like that. To become the owner free franchise, you need to carefully study your region and conduct an analysis of unoccupied niches. After that, you can look for companies that will be interested in it, and try to convince them of the need to conclude such a deal.

An important role in the process of getting a franchise without investment will be played by the personal qualities of the franchisee:

• knowledge and understanding of the brand with which to work;
• the ability to conduct the negotiation process and find arguments;
• management experience.

The algorithm of actions at startup will look like this:

1. Conclusion of an agreement and appointment of the franchisee to the position of director of the company.
2. Business registration.
3. Search and repair of premises.
4. Recruitment and training of staff.
5. Going to the break-even point and returning the invested funds to the franchisor.

To make a franchise without a lump-sum fee, royalties and risks possible, several rules must be followed:

• find out why this offer is free. It should be clearly understood what the financial benefit of the franchisor will be;
• verify business reputation the seller;
• carefully study the contract to be signed. It is advisable that an experienced lawyer was involved in proofreading;
• assess your own risks.

A franchise business, offered without a down payment, can be implemented in a wide variety of business areas. You should pay attention to the following:

• sale of food products;
• services sector;
• tourism;
• catering;
• retail trade in clothing and footwear;
• transportation;
• auto business;
• online shopping.

Downsides of a free franchise

You should never forget that, in addition to the attractive side of the issue, there must certainly be disadvantages, which even experienced entrepreneurs need to take into account, not to mention beginners:

• fraud. Franchisors do not always behave in good faith, as a result of which the buyer of the franchise becomes a debtor, from whom all property is taken away through litigation;
• the opportunity to develop a business at its own discretion under such conditions is completely reduced to nothing. Usually the franchisor dictates all the conditions himself and very carefully monitors their implementation. With this method of cooperation, he most often needs an ordinary performer;
• franchises, which in fact would be absolutely not requiring investments at the start, practically do not exist. In one form or another, a novice entrepreneur will still have to provide some funds. Practice shows that franchisors do not really want to deal with those who have no money at all.

Hence the conclusion suggests itself - the more loyal the conditions of the seller of the business model, the more chances that there may be a catch somewhere. For this reason, to enter into such transactions without legal support Not recommended.

How to Choose a Profitable Franchise: Video