8 Franchising Trends 2020 in Russia

The major advantage of franchising, especially in very uncertain times, is its flexibility. A good idea may yield fast results, and its author, as well as the consumers, may benefit from its use. In the case of the traditional business model, the success of the enterprise increasingly depends on the financial capacities of the owner, his managerial competencies, his team, and many other factors. The business owner also has to invest a lot of his time and effort if he wants to expand and does not have any partners who can bear part of the burden.

The economic crisis has a positive effect on franchising development – it is easier to work according to a stable business model with well-established processes than create own business concepts that could be loss-making.

The most popular franchises have the following characteristics:

  • Low initial investments – up to 50 thousand dollars;
  • Quick payback period – up to 2 years;
  • Relatively simple business models.

Below are the main franchising trends in 2020 in Russia:

►Trend #1

From the last year, one of the key franchising trends is the client-oriented approach. More and more business models include personalized products adapted to the clients’ needs.

►Trend #2

The number of franchises in the healthcare and education sectors is rapidly growing. On the one hand, it is an indication of high demand; on the other hand, it signals the risk of the market over-saturation.

►Trend #3

There is a continuing demand for low-cost fitness centers, but there are only a few franchises of this kind in Russia. The reason is that even low-cost fitness centers require high initial investments.

►Trend #4

If previously the most popular franchises targeted to kids were in the retail sector, now, the franchises related to children’s education are the leaders in this field.

►Trend #5

The demand for caregiver support services will, undoubtedly, reach Russia in the nearest time. The recent laws on increasing the retirement age will facilitate this process. However, the low income of the population would work as a deterrent.

►Trend #6

The service of clinical analysis collection in private clinics become more and more popular due to the low service quality in the local public hospitals. What is more, according to many franchisees, it is easier to develop this type of business in the regions than in big cities, where the quality of care is at a decent level.

The capital cost repayment period for the private laboratory working as a franchisee is about 2 years. The big advantage of this business is that partners do not have to get the medical license; this falls on the shoulders of the parent company.

►Trend #7

The demand for cafes and restaurants that offer a takeout will continue to rise for a long time. The urbanization and the rise of megacities, the practice of remote work and flexible working hours during the pandemic, the saturation of the market with the traditional restaurants, and the increase in rent – all these factors will stimulate the demand for food and beverage delivery service.

►Trend #8

There are some new solutions in the sphere of food retail that help to save clients’ time and money. For instance, some companies create different menus for the whole week and offer the delivery of groceries needed for cooking according to this menu.