Magazine business plan: Store business plan part 6

Collaboration comes together with the joint development of store format, about recruitment, estimated revenue and recurrent expenditure required to bring it into relation with the requirements. Provided that if, together with a request for cooperation turns decorated shop, which need only sign, the advertising campaign, the replacement of computer equipment and cash, the network connection, so the minimum lump sum franchise fee ranges from $ 200 thousand in the case if the store really needed to reconstruct and change all the equipment, so that's about $ 1 million

More "efficient" variation of a franchise network offers Kopeyka.
"Today all we have developed one of the most rigid systems of a franchise - the director of management to improve business Konstantin Arkhipov. - Franchise business format. This means that now the store franchisees have to be repeated quite a shop franchisor. All we provide the perfect set of standards, including construction, equipment and etc. Include franchisees in our system of discounts according to purchasing equipment. He sets in his shop our prices, but we guarantee him a certain level of gross profit. The result of investment in a sort of standard shop but excluding the cost of the property as well as with the view of a complete renovation, repair and equipping of the order of $ 500 thousand one-time franchise fee all we still did not take, and, most likely in the future it become.

Today the company is developing "soft" variations of franchising, as very often together with proposals for cooperation with businessmen come already prepared, precisely in its own renovated and equipped shops. To enable as well as this # but the potential Kopeyka will advise them so-called trade franchise. "

Unlike many others, Pyaterochka does not require its own future partners exactly franchising experience in retail, but the topsy-turvy, welcomes his absence and believes it is "freedom from the burden of past mistakes." The Company does not extend the franchise to some shops: the firm's management prefers to sell the privilege to open in the regions of entire networks of 20-30 outlets.

"The purchase of our creation process - from 500 down to 750 thousand dollars, depending on the region's what it takes - says the vice president precisely Communications and Branded politics Felix Stethem. - Investment capacity - from 3 until 5 million dollars for 2 years. But then the network goes to its own funds. At over 3.5 years, it is on its feet. In the classical version of the network consists of 30 shops, a training center, a warehouse complex. Royalties are discussed separately, they are minimal.