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Open a Franchise Business in Russia

Open a Franchise Business in Russia

The franchising system in Russia became popular in the recent years, especially after the worldwide economic crisis that changed in a certain amount the business strategy in the country. A foreign investor can open a franchise in Russia in the most competitive sectors like the food industry, healthcare, software development, consultancy, or financial services. A person interested in opening a franchise in Russia can ask for support and guidance offered by our consultants in company formation in Russia. Our team can guide you throughout the entire incorporation process of a business regardless of the chosen structure.

International and local franchising businesses in Russia

An investor from overseas can establish a franchise in Russia in compliance with the Companies Law and the Civil Code in the country. There are two main possibilities of setting up a franchise in Russia, such as:

•    choosing a local company which operates in the franchising system:

•    placing an international franchise.

From a legal point of view, a franchise in Russia can be established as a single unit, as a joint venture or as a multi-unit concession. Each type of franchise is granted if an agreement in this matter is signed by both parties, the franchisee, and the franchisor, in order to legally use the rights and licenses of the company. Even though there is no particular legislation regarding the franchising business in Russia, one must understand what kind of documents are necessary, a concern for which you can talk to one of our Russian company formation agents.

The franchise agreement in Russia

The franchise contract is issued at the moment the franchisee and the franchisor decide to settle the collaboration. It is good to know that a franchise contract will comprise the information, the terms, and conditions in which such business can be established. Providing the license to use the company’s rights on a foreign territory, in our case Russia, if a business from overseas is chosen for franchising, are among the details stipulated in a franchise agreement. Also, it is good to know that the agreement will contain details about the investments, the support offered by the franchisor, the related fees, and the initial investment. It is known that most franchise businesses are subject to low investments compared to the cases in which a company is started from scratch. Also, the investments can be returned in a short period of time, letting the franchisee to benefit from the entire profits after this period.

Why should you open a franchise in Russia?

The reasons why the franchising system is a very appreciated business on an international plan is that it comes as a complete package, with all the details and requirements to set up the franchise. The logo, the initial stock, the marketing strategies and the workflow structure is provided by the franchisor and mentioned in the contract.  According to recent statistics, most entrepreneurs with franchise businesses decide to continue with this structure even if the legal contract has ended.

If you are an investor interested in opening a franchise in Russia, please do not hesitate to contact our local company incorporation advisors in Russia.