Sell Your Franchise in Russia

Franchise in RussiaOne of the most important aspects to be considered when opening a business is the economy of the country where you plan to start your enterprise and a well sized target audience who will desire your product.

Analysts have often said that a good place for franchise opportunity is in a country with growing economy. Ideally you should look for a place where local business is not really developed and there are still a lot of untapped markets for new business ventures.

An example of a country with ideal franchising opportunities for a plethora of markets is Russia. It is the world’s 11th largest economy by nominal GDP. With over 140 million consumers, a growing middle class, and almost unlimited infrastructure needs, Russia remains one of the most promising markets for starting a new business. Franchise opportunities in Russia are abundant; unlike other countries there are many markets that remain unsaturated. Every day new franchise companies are launching in the Russian market. In only 6 years (from 1995 to 2001) 22 franchising systems became active in the Russian market. Then in only two years, by 2003 the amount of franchise systems in operation grew to 70. Today there are more 600 companies working as franchisees in Russia.

According to Ricardo Camargo, executive director of the Brazilian Franchising Association, their collaboration with the Russian Franchising Association let them exchange skills and promote franchise selling in Russian market, support Russian franchisees. As a result all of these efforts have helped to create a favorable legal and commercial environment for strengthening franchise opportunities in Russia.

Russia is a geographically vast market, spanning nine time zones and encompassing over 17 million square miles. On August 22nd 2012 Russia officially became 156th member of the World Trade Organization. This liberalizes trade with the rest of the world and creates opportunities for foreign exports and investment, including franchise opportunities.

Russian sources list that the country’s leading trade partners include Netherlands, China, Germany, Italy, Ukraine and Turkey. Today U.S. accumulated investment in Russia is approximately $10 billion. According to Russian data, the U.S. is Russia’s 10th largest foreign investor.

There are a more then handful of ways which opening a franchise in Russia can build a platform for business success, we will discuss only some here. First, the business (a franchise) has already experienced success elsewhere, or it wouldn’t be a franchise at this point. You already know that the concept is viable when you choose to open a franchise, because it’s already operating in another locale. The system works; it’ll be your choice whether or not it’s a workable business for your market and to make it succeed. Further, overall, franchise start-ups have a much higher success rate than other small businesses. Trust what works, what has always worked and those whose success depends on yours.

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