Franchise Association\'s Presentation


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Franchise Association\'s Presentation

  1. 1. F R A N C H I S E A S S O C I A T I O N UKRAINE
  2. 2. Statistics of franchising in Ukraine Is held by Teamvision Ukraine for Franchise Association 18170 301 1020 84 All in all 500 2 5 4 Vending 73 7 15 5 Manufacturing 257 15 51 6 Servises to business 40 9 50 7 Information 975 59 133 14 Public food 4159 45 139 17 Servises to individuals 12166 164 627 31 Retail Units Franchisers Brands Branches Segment 09.10.2007 Register "Networks in Ukraine"
  3. 3. Statistics of franchising in Ukraine At the end of the year there were : 2001 – 40 2002 – 70 2003 – 100 2004 – 140 2005 – 226 2006 – 268 2007 – 303 franchisers
  4. 4. Reserve of franchising – network companies <ul><li>These companies are different from franchise by absence of franchise packages and they do not sell franchise . The quantity of franchises will grow constantly . </li></ul><ul><li>It’s also pleasant to enlighten that the quantity of branches in franchising grew to 84 (year ago – 74 branches ). </li></ul>
  5. 5. Tendencies <ul><li>We forecast constant growth of quantity of franchisers both from modification of own networks and from the imported brands from outside . </li></ul>
  6. 6. Franchise Association <ul><li>Franchise Association started its work on December 29 th of 2001. </li></ul><ul><li>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. </li></ul>
  7. 7. Franchise Association <ul><li>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. </li></ul>
  8. 8. Power of membership in Association <ul><li>I Power of membership for existing frnchisers </li></ul><ul><li>II Power of membership for suppliers </li></ul><ul><li>III Power of membership for potential and starting franchisers </li></ul><ul><li>IV Power of membership for potential franchisees </li></ul>
  9. 9. I Power of membership for existing franchisers <ul><li>Power of economy </li></ul><ul><li>Power of information </li></ul><ul><li>Power of financing </li></ul><ul><li>Power of influence </li></ul><ul><li>Power of experience </li></ul><ul><li>Power of communication </li></ul><ul><li>Power of partnership </li></ul><ul><li>Power of promotion </li></ul>
  10. 10. Power of economy <ul><li>Membership in Association provides considerable discounts for participating in events and services that are necessary for development of network : </li></ul><ul><li>Expo “ Franchising &quot; </li></ul><ul><li>Franchise catalogue </li></ul><ul><li>Magazine &quot;МО RS : methods of optimum network development &quot; </li></ul><ul><li>Franchise presentations during educating regional seminars, held by Association </li></ul><ul><li>Receiving special prices from suppliers, consultants who are members and partners of Association </li></ul>
  11. 11. Power of information <ul><li>You will be regularly informed of vital events of branch through electronic and printed resources : </li></ul><ul><li> – Association’s web-site, that bears information about projects, events, services and members </li></ul><ul><li>e-mail leaflets – You will get information on franchise issues and Association’s activities, business forums, round tables, conferences etc. </li></ul><ul><li> – You can write and comment messages on forum. It enables to inform of events and get news more dinamicly </li></ul>
  12. 12. Power of information <ul><li>You will be regularly informed of vital events of branch through electronic and printed resources : </li></ul><ul><li>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 </li></ul><ul><li>Franchiser hot-line – members of Association may get information about market, events, methods of building and management of network via telephone or e-mail </li></ul>
  13. 13. Power of financing <ul><li>Crediting of potential franchisees – Franchise Association is working on the common program of crediting potential franchisees with Privat 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 </li></ul><ul><li>Fundraising for investment in network development </li></ul><ul><li>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 </li></ul>
  14. 14. Power of influence <ul><li>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 . </li></ul><ul><li>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 &quot;, 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 . </li></ul>
  15. 15. Power of influence <ul><li>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 . </li></ul><ul><li>Today Association is working on the project of franchise law that will promote development of franchising in Ukraine . </li></ul>
  16. 16. Power of experience <ul><li>Education </li></ul><ul><li>Association holds selection, training and re-training of personnel of : </li></ul><ul><li>franchise departments </li></ul><ul><li>other functional departments </li></ul><ul><li>separated units </li></ul><ul><li>During the series of educating seminars on topic “ Franchising as a method of stable and long lasting business &quot; Association holds corporate seminars for training personnel of companies – future franchisers , managers of selling departments , dealers , distributors . </li></ul><ul><li>Seminar may be also held for the group of potential franchisees (partners, distributors, directors of private units ). </li></ul>
  17. 17. Power of experience <ul><li>Literature </li></ul><ul><li>Franchise Association publishes literature on theoretical and practical aspects on franchising : </li></ul><ul><li>Seriously about franchising . Electronic library on franchising . </li></ul><ul><li>Franchising from A to Z : Glossary . Authors Anna Tsyrat , Yevgeniya Kryvonos . First in CIS manual of such a kind . </li></ul><ul><li>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 . </li></ul>
  18. 18. Power of communication <ul><li>Organising delegations to international forums, expos and conferences ; </li></ul><ul><li>Inviting and organising trips of representatives of foreign association and international networks ; </li></ul><ul><li>Organising round table discussions, sittings of franchise club, thematic workshops of franchisers . </li></ul>
  19. 19. Power of partnership <ul><li>Becoming a member of Association You get access to the informational resources of its partnership organisations . </li></ul><ul><li>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 . </li></ul>
  20. 20. Power of promotion <ul><li>The member of Association has the right to free : </li></ul><ul><li>placing the banner on the web of Association in the column “ franchises &quot; </li></ul><ul><li>special page on Association’s web in “ Members &quot; section www . franchising . org . ua /franchiser, where You can place any information about network and offer of partnership for potential franchisees </li></ul><ul><li>corporate or personal e - mails franchiser @ franchising . org . ua or aivanov @ franchising . org . ua </li></ul><ul><li>spreading your information via e-mails to data base of Association </li></ul><ul><li>receiving data base of potential franchisees that turn to Association for a franchise </li></ul>
  21. 21. Power of promotion <ul><li>Member of Association gets exclusive conditions for : </li></ul><ul><li>participation in collective stands of Association on expos, forums, both in Ukraine and abroad ; </li></ul><ul><li>participation in events of Association ; </li></ul><ul><li>placing information in franchise catalogue ; </li></ul><ul><li>placing information in MORS magazine . </li></ul>
  22. 22. III Power of membership for potential and starting franchisers <ul><li>registering trade marks and supporting franchise agreements </li></ul><ul><li>developing franchises </li></ul><ul><li>organising consulting on issues of network development </li></ul><ul><li>standardising franchises that are offered for sale </li></ul><ul><li>independent expertise of fulfilling franchise agreements </li></ul><ul><li>These services are provided with the help </li></ul><ul><li>of TeamVision company , official consulting </li></ul><ul><li>body of Association . </li></ul>
  23. 23. IV Power of membership for potential franchisees <ul><li>search of regional partners ; </li></ul><ul><li>organising business meetings with Ukrainian and foreign franchisers ; </li></ul><ul><li>search of a network for entering without changing branch of activity both in Ukraine and abroad ; </li></ul><ul><li>search of a network for starting a new business inside of it . </li></ul>
  24. 24. Fees to Association <ul><li>The entry fee to Association – 1000 hrn . for all categories of members. </li></ul><ul><li>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. </li></ul>
  25. 25. Fees to Association <ul><li>Size of quaterly membership fees for categories of members : </li></ul><ul><li>existing franchiser : </li></ul><ul><ul><li>standard – 40 hrn . per unit in network, not more than 1400 hrn . </li></ul></ul><ul><ul><li>extended – 30 hrn . per unit in network plus 1 % of sold franchises by Association </li></ul></ul><ul><li>existing franchisee : </li></ul><ul><ul><li>“ own &quot; – 20 hrn ., if franchiser is a member of Association ; </li></ul></ul><ul><ul><li>“ not own &quot; – 70 hrn ., if franchiser is not a member of Association ; </li></ul></ul><ul><li>potential franchisers – free if package and agreement is being prepared by Association </li></ul><ul><li>potential franchisee – 0,5 % of the sum of bought franchise , 2 % of sum of attracted finance </li></ul><ul><li>suppliers – 2 % of incomes from members of Association </li></ul><ul><li>other companies – 100 hrn . </li></ul>
  26. 26. Members of Association <ul><li>Franchise Association unites 79 companies , 66 of which represent franchise networks . Our members are entrepreneurs from Ukraine, Russia, Portugal and the USA. </li></ul>
  27. 28. Contacts <ul><li>Head of Directorate : Andrey Kryvonos </li></ul><ul><li>Т +380 (44) 592.8615 </li></ul><ul><li>M +380 (67) 466.8649 </li></ul><ul><li>Department director : Sergey Girovets </li></ul><ul><li>Т +380 (44) 233.0361 </li></ul><ul><li>М +380 (67) 963.3958 </li></ul><ul><li>Department director : Yevgeniya Kryvonos </li></ul><ul><li>Т +380 ( 68 ) 201.3675 </li></ul><ul><li>M +380 (67) 291.9771 </li></ul><ul><li>Department director: Illya Revenko </li></ul><ul><li>M +380 (50) 446.6610 </li></ul><ul><li>Office : Klinichna str. , 23-25, of . 60, </li></ul><ul><li>Kyiv , 03110, Ukraine </li></ul><ul><li>F +380 (44) 249.6764 </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul><ul><li> </li></ul>