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Statistics of franchising
in Ukraine

Register "Networks in Ukraine" 09.10.2007

Segment Branches Brands Franchisers Units

Retail 31 627 164 12166

Servises to individuals 17 139 45 4159

Public food 14 133 59 975

Information 7 50 9 40

Servises to business 6 51 15 257

Manufacturing 5 15 7 73

Vending 4 5 2 500

All in all 84 1020 301 18170

Is held by Teamvision Ukraine for Franchise Association

Statistics of franchising
in Ukraine
At the end of the year there were:
Reserve of franchising –
network companies

These companies are different from franchise by

absence of franchise packages and they do not
sell franchise. The quantity of franchises will
grow constantly.

It’s also pleasant to enlighten that the quantity of

branches in franchising grew to 84 (year ago –
74 branches).
Tendencies

We forecast constant growth of quantity of

franchisers both from modification of own
networks and from the imported brands from
outside.
Franchise Association

Franchise Association started its work on

December 29th of 2001.
Its task is to present interests of networks and
its operators, that use franchise agreements,
at governmental level, provide practical
assistance for organisation and promotion of
franchises.
Franchise Association

Same time with active work on the national level,

Association establishes relations with foreign and
international associations, studies experience of
other countries in franchise sphere and standard
acts of it.
Franchise Association

Organises specialised expo

Issues franchise catalogue

Moderates franchise forum

Power of membership
in Association

I Power of membership for existing frnchisers

II Power of membership for suppliers
III Power of membership for potential and starting
franchisers
IV Power of membership for potential franchisees
I Power of membership
for existing franchisers

 Power of economy
 Power of information
 Power of financing
 Power of influence
 Power of experience
 Power of communication
 Power of partnership
 Power of promotion
Power of economy

Membership in Association provides considerable

discounts for participating in events and services
that are necessary for development of network:
 Expo “Franchising"
 Franchise catalogue
 Magazine "МОRS: methods of optimum network development"
 Franchise presentations during educating regional seminars, held
by Association
 Receiving special prices from suppliers, consultants who are
members and partners of Association
Power of information

You will be regularly informed of vital events of

branch through electronic and printed resources:
 www.franchising.org.ua – Association’s web-site, that bears
information about projects, events, services and members
 e-mail leaflets – You will get information on franchise issues and
Association’s activities, business forums, round tables, conferences
etc.
 www.e-franchising.org.ua – You can write and comment messages
on forum. It enables to inform of events and get news more
dinamicly
Power of information

You will be regularly informed of vital events of

branch through electronic and printed resources:
 MORS: methods of optimum network development – magazine about
franchising, official printing body of Association. Franchisers may
share experience and news on its pages, get vital information about
market and its events
 Franchiser hot-line – members of Association may get information
about market, events, methods of building and management of
network via telephone or e-mail
Power of financing

 Crediting of potential franchisees – Franchise Association is

working on the common program of crediting potential
franchisees with Privat Bank and OTP bank. This will enable
franchisers not to refuse a franchise to those who have premises
and experience but doesn’t have enough financial resources.
More favourable crediting conditions make profitability of
franchise higher
 Fundraising for investment in network development
 Paying your accounts in your name through our account in
foreign currency (we have dollar, euro and rubble accounts) it
the cost is 2 % of the transferred sum
Power of influence

Franchise Association is registered in the form of union of

employers, that enables it to present the interests of its members at
the governmental and local levels in the most efficient way.
Association is represented in Union of entrepreneurs of Ukraine
attached to the Cabinet of Ministers of Ukraine, in Social expert
council for legislation problems, in Confederation of ngos of unions
of entrepreneurs “New formation union", in Social board of State
committee of Ukraine for regulatory policy issues and
entrepreneurship, in Social board attached to the Head of State
customs service of Ukraine.
Power of influence

The issue of specialised law on franchising was

raised since the very start of Association’s work. In
2002 the project of law wasn’t passed to the
Parliament partly due to the efforts of Franchise
Association.
Today Association is working on the project of
franchise law that will promote development of
franchising in Ukraine.
Power of experience

Education
Association holds selection, training and re-training of personnel of:
 franchise departments
 other functional departments
 separated units
During the series of educating seminars on topic “Franchising as
a method of stable and long lasting business" Association holds
corporate seminars for training personnel of companies – future
franchisers, managers of selling departments, dealers,
distributors.
Seminar may be also held for the group of potential franchisees
(partners, distributors, directors of private units).
Power of experience

Literature
Franchise Association publishes literature on theoretical and
practical aspects on franchising:
 Seriously about franchising. Electronic library on franchising.
 Franchising from A to Z: Glossary. Authors Anna Tsyrat,
Yevgeniya Kryvonos. First in CIS manual of such a kind.
 Methodic manual for the future participants of franchise networks.
Consists of practical advices for those who is going to become a
franchiser or a franchisee.
Power of communication

 Organising delegations to international forums,

expos and conferences;
 Inviting and organising trips of representatives of
foreign association and international networks;
 Organising round table discussions, sittings of
franchise club, thematic workshops of franchisers.
Power of partnership

Becoming a member of Association You get access to the

informational resources of its partnership organisations.

E-mail leaflets of Association is also spread through the

data bases of these organisations. You get the news of
our partners, you can attend them and search for partners
among members of these organisations.
Power of promotion

The member of Association has the right to free:

 placing the banner on the web of Association in the column
“franchises"
 special page on Association’s web in “Members" section
www.franchising.org.ua/franchiser, where You can place any
information about network and offer of partnership for potential
franchisees
 corporate or personal e-mails franchiser@franchising.org.ua or
aivanov@franchising.org.ua
 spreading your information via e-mails to data base of
Association
 receiving data base of potential franchisees that turn to
Association for a franchise
Power of promotion

Member of Association gets exclusive conditions

for:
 participation in collective stands of Association on
expos, forums, both in Ukraine and abroad;
 participation in events of Association;
 placing information in franchise catalogue;
 placing information in MORS magazine.
III Power of membership
for potential and starting
franchisers

 registering trade marks and supporting franchise agreements

 developing franchises
 organising consulting on issues of network development
 standardising franchises that are offered for sale
 independent expertise of fulfilling franchise agreements

These services are provided with the help

of TeamVision company, official consulting
body of Association.
IV Power of membership
for potential franchisees

 search of regional partners;

 organising business meetings with Ukrainian and
foreign franchisers;
 search of a network for entering without changing
branch of activity both in Ukraine and abroad;
 search of a network for starting a new business
inside of it.
Fees to Association

The entry fee to Association – 1000 hrn. for all categories of

members.

Considering individual needs and peculiarities of potential

members, Association may set individual sizes of membership
fees by signing Individual membership agreement, that will
explain services and volume of them, that is necessary for a
member.
Fees to Association
Size of quaterly membership fees for categories of members:
 existing franchiser:
 standard – 40 hrn. per unit in network, not more than 1400 hrn.
 extended – 30 hrn. per unit in network plus 1 % of sold franchises
by Association
 existing franchisee:
 “own" – 20 hrn., if franchiser is a member of Association;
 “not own" – 70 hrn., if franchiser is not a member of Association;
 potential franchisers – free if package and agreement is being
prepared by Association
 potential franchisee – 0,5 % of the sum of bought franchise, 2 % of
sum of attracted finance
 suppliers – 2 % of incomes from members of Association
 other companies – 100 hrn.
Members of Association

Franchise Association unites 80 companies, 67 of

which represent franchise networks. Our
members are entrepreneurs from Ukraine, Russia,
Portugal and the USA.
Contacts
Head of Directorate: Andrey Kryvonos
Т +380 (44) 592.8615
M +380 (67) 466.8649
Department director: Yevgeniya Kryvonos
Т +380 (44) 233.0361
Т +380 (68) 201.3675
M +380 (67) 291.9771
Department director: Illya Revenko
M +380 (50) 446.6610
Office: Klinichna str., 23-25, of. 60,
Kyiv, 03110, Ukraine
F +380 (44) 249.6764
info@franchising.org.ua
www.franchising.org.ua
www.e-franchising.org.ua