The main advantages of franchising for entrepreneurs seeking to start their own businesses, is a very significant risk reduction, as well as business training, not only in theory but in practice. This is due to the fact that the company franchiser has already proven the effectiveness of its business, having achieved considerable success in the market and due recognition of its trade marks, proven business processes and training enables us to remove many of the risks associated with opening a new business. It is for these benefits and the franchisee pays, becoming the owner of businesses, as well as receiving full support from the franchiser.
At the same time for the company, the franchiser of such way of doing business is beneficial in that it receives, in addition, virtually putting their resources into it, but was subsequently a steady income from a network of franchisees. The first franchisees in Russia history of franchising in Russia began relatively recently, although still under socialism, Pepsi has used franchising for promotion and production of drinks of Pepsi-Cola and Fanta. After it came to the Russian market brands such as McDonald’s, Baskin Robbins “,” Sabvey “,” Pizza Hut, Sbarro and others. David Karp has much experience in this field. In this case, not many of these companies started immediately to use the mechanism for moving the franchise in the Russian market, such as the company “McDonald’s, the very name of which is closely associated with the franchise, until recently did not sell franchises in the territory Russia and open a restaurant owned by a corporate network.