The Perspectives of New Franchising Models in Russia

Purpose: the main goal of the article is to define the development perspectives of the new franchising models in Russia (specifically quasifranchising, freedom franchising and branchising). To achieve this the following tusks should be completed: to define the specific characteristics of the following models as well as the factors which influenced their occurrence; to question Russian franchisors in order to understand their desire to develop their business under the new franchising models; to identify the key development possibilities of the new franchising models in Russia based on the gathered data. Methods: the article was prepared with the help of theoretical as well as economic analysis. Moreover, the series of the formalized telephone interviews with the Russian businessmen were conducted by the author. Based on the results gathered the conclusions on the development perspectives of the new franchising models in Russia were drawn. Results: currently new franchising models are conquering the Russian market. In comparison to the classical franchising model new franchising models are riskier for the franchisor due to the certain freedom available to franchisees. Quasifranchising, which is based on the business model transfer without the brand transfer, is suitable for the young concepts and for the franchisors seeking for the increasing number of franchisees. Freedom franchising enabling assortment and outlook variety of the point of contact is a good alternative for the franchisees who struggle for individuality even in the boundaries of the franchise as well as for the franchisors looking for the franchisees of that kind. Finally, branchising, which means franchisor’s and franchisee’s co-investment, is applicable for the franchises with high level of investments needed. Conclusions and Relevance: the materials of the article show the certain place of the new franchising models on the Russian market. They make it possible to adjust the business model to the changing social and economic realities. New franchising models are recommended in those business spheres where the variability of the non-key business aspects is possible as well as for the young concepts seeking their place on the market. The conducted research develops the scientific understanding of the modern franchising models as a business development instrument. Practical result usage will enable the development of the franchising networks under the new market tendencies and social changes.

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