The best franchises without investment. How to start a franchise business without investment. This is possible in several sectors of the economy.

A franchise is a unique licensing right that allows you to use someone else's trademark while making a profit. Resources are provided by a large company that has already established itself in the market. And the franchisee receives resources, this is most often a start-up company taking its first steps in business. Through franchising, a young company can make its way, and in an easy way, using the experience and knowledge of another company. But a natural question arises: is it possible to open a franchise business without investments? Our article aims to answer this question.

How not to spend

A franchise without investment is joining a large network company without making an initial contribution. For some entrepreneurs, this is just a cherished dream. But, no matter how fantastic it may seem, it is still a reality. And cheese is not always free only in mousetraps. The main expenses of the franchisee go to. A lump sum is a one-time payment of money required for the right to take possession of a company's intellectual property. Those. This is the fee for buying a franchise. And royalties are called periodic payments that are deducted by the franchisee to the franchisor.

• The owner himself invests.
• There are no royalties for the user.
• No initial investment required.

Examples

Below we will provide some examples of how to start a franchise business without initial capital.

1. The franchise owner acts as an investor. This is usually possible if you are an employee of a large company whose management plans to open a new outlet and appoint you as its director.
2. . If you don’t have your own funds, you can attract an investor to invest in buying a franchise (if the franchise is well-known, it’s easier to get a loan to buy a franchise than for your own business).
3. The absence of a lump-sum fee is a franchise business with minimal investment. However, you need to take into account that the company enters the business for free, but then you will have to pay from your profits.

In the absence of a lump-sum contribution, the company enters the business for free, but then you will have to pay out of your profits.

Finally

Getting a franchise without investments is not a myth, but a real practice. But it is worth noting the riskiness of such an undertaking. After all, in this way scammers can lure their victims. Conditions can be very tough. Therefore, before taking a franchise, you should learn more about its owner, take an interest in his history and look at the documentation. It is important to understand why such an offer is free and assess the risks involved. And read all the papers proposed for signing carefully, looking for inconsistencies and dubious points in them.

A franchise without investments for implementation, like other options for buying a ready-made business, requires investing a certain amount. However, if you choose this type of offer from the franchisor, the contributions to entrepreneurship will be quite small.

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The principle of operation of franchises for implementation without investments

A franchise without investment for implementation often allows you to start your own business without paying a lump-sum fee. In addition, franchisors do not require the franchisee to purchase any business assets.

The principle of operation is as follows:

1. A contract is concluded between the buyer and the franchise owner. The franchisee after the conclusion of the contract receives the right to work under a well-known trademark. However, the franchisor has full control over the operation of the store opened by the franchise buyer.
2. A novice businessman personally selects store employees and equips workplaces. The franchisor independently delivers goods to the franchisee's outlet. The franchise buyer does not spend his own money either on the purchase of products or on their delivery to the outlet. The formation of the assortment and the development of a pricing policy are also not the responsibility of the franchisee. The task of the franchise buyer is to successfully sell the goods received without payment.
3. There are two options for the distribution of profits. In the first, the proceeds from the sale belong to the franchisor. Under the terms of the contract, the franchisee receives an agency fee in the amount of a quarter of this amount and does not pay the cost of products sold. In the second option, the proceeds belong to the franchise buyer, but he retains the obligation to return to the franchisor the money spent on the purchase of the delivered goods.

Actual directions for small business

The most relevant areas for starting a small business in 2020 are:

• sale of goods for children and provision of related services;
• activities in the field of IT technologies;
• online store;
• provision of repair services.

Goods and services for children

Demand for goods and services for children does not decrease even in times of crisis.

You can sell:

• clothes;
• toys;
• baby food;
• hygiene items.

Services for children include:

• game rooms in shopping centers;
• cafe with a special children's menu and bright design;
• laboratories for various experiments;
• petting zoos;
• children's hairdressers;
• prize rides in the parks.

Children's Cafe petting zoo Game room in the shopping center Miracle Lab Prize attraction Children's hairdresser

Sphere of IT-technologies

You can offer clients services for creating websites and various applications. An understanding of the principles of writing program codes and the operation of interactive processes by a novice entrepreneur will serve as a good advantage in doing business.

Online store

The advantage of this line of business is that the buyers of the store can be not only residents of the city in which its owner is located. You can organize the delivery of products to anywhere in the country or the world. You can sell various categories of goods.

Among them stand out:

• furniture;
• goods for children;
• auto parts;
• gifts;
• electronics;
• clothing and footwear;
• household products;

It is better to focus on such a target audience as young people, since these are the people who are active Internet users.

Repair Services

You can provide a set of works or choose a specific profile, for example:

• floor insulation;
• interior decoration of residential premises;
• plastering and painting works;
• cosmetic repairs of office premises;
• installation of stretch ceilings.

Overview of 2020 franchises with minimal investment

Despite the fact that franchises for sale are not very popular in Russia, there are many different offers on the market. Some companies offer their franchisees a kind of commodity loans, which create the opportunity to pay for the goods received after their sale. Others are willing to provide several batches of products for free. Such proposals are put forward not only by large manufacturing enterprises, but also by ordinary Internet services.

Franchises with minimal investment are described in the video of the HelloBoss channel.

Shoe store ALBA

ALBA is a chain of footwear and accessories stores founded in 1996. In the manufacture of products, the brand uses advanced technologies and high-quality natural materials. Employees of all salons are trained and constantly improve their professional skills in the company's own training center.

Features of buying a franchise for the implementation of ALBA:

Franchise indicators:

• the total cost of opening a store is 7 million rubles;
• there is no lump sum;
• the investments of the franchise buyer are directed to renting premises, finishing work and purchasing commercial equipment.

Special conditions:

• the first batch of products is delivered without payment with the installment payment function;
• return periods are specified in the franchise agreement.

Trampoline center Cosmica

The Cosmica network was founded in 2015. During the first three years of operation, 25 trampoline centers were opened under the support of the franchisor.

Program features:

Cosmica brand owners have developed three types of franchise:

Franchise indicators:

• one trampoline brings income in the amount of 70 thousand rubles per month;
• The number of visitors to Cosmica centers is increasing by 30% every year.

Franchise of the Russian Tea Company – RCHK

"Russian Tea Company" is a network of branded stores that has existed for over 20 years. The concept of the brand is the sale of quality teas collected around the world.

RCHK Franchise Program:

Peculiarities:

• there is no lump sum;
• special condition: deferred payment for the delivered goods.

Group of fuel and energy plants

TEK is a leading Russian company in the Siberian Federal District that sells household and industrial heating equipment. A group of factories was founded in 2016.

Features of the fuel and energy complex franchise program:

Optics "Island of glasses"

The company was founded in 2001. The brand's salons are engaged in the sale of lenses and glasses of famous designers. In addition, customers can check their vision at each optician.

Features of the franchise program "Island of Points":

ConcreteBase

The company was founded in 2008. The network consists of 20 concrete plants and 62 franchisees in Russia and the CIS. Franchising from BetonBaza is the operation of a trading house, which presents concrete and solutions for sale.

Features of the franchise program:

The trading house exists in two modes:

1. With its own concrete plant.
2. No own business. In this case, the franchisee joins one of the chain's concrete plants and works as its sales office.

The video tells about how the BetonBase franchise works. Filmed by BetonBaza Moscow channel.

Felix

FELIX was founded in 1991. The network is engaged in the production and sale of furniture for offices and hotels. All salons of the brand are decorated in the corporate style, and the location of exhibition models is observed in accordance with the requirements of the parent company.

Features of the Felix franchise program:

Franchising scheme:

1. Prices for products are set by the network seller, which allows partners to sell products at wholesale prices.
2. The cost of making a salon sign is shared between the parties to the agreement equally. At the beginning of the work, the franchisor provides the franchise buyer with all the necessary advertising materials. After reaching the payback, the costs of marketing activities are partially compensated by the network operator.
3. The franchise owner regulates the work of his branches and provides their support. Salon personnel receive free training organized by the franchisor.

Artel children's clothing

The brand was created in 1999. The salons sell Russian-made children's clothing based in Tula. A feature of the network is the sale of capsule models suitable for adverse weather conditions. The store offers customers to purchase clothes for children aged 0 to 14 years.

Features of the Artel franchise program:

Special franchise conditions:

1. The parent company supplies the franchisee with furniture for the trading floor free of charge.
2. The first franchise buyer in the region receives special guarantees for protection from competitors for a year.
3. The franchisor provides support in carrying out marketing activities and assistance in promoting the store. The head office of Artel places information about the new point on its website and in the brand's catalogs.

Ulyanovsk doors

For more than 10 years, the network has been selling interior doors made by well-known factories. The brand owns five own stores and two franchised branches.

Features of the Ulyanovsk Doors franchise program:

In order to purchase profitable franchise, you need to follow the recommendations of experts when choosing a franchisor:

1. You should personally get to know the franchisor and pay a visit to the head office of the company. It is necessary to find out the number of open and closed stores, as well as the reasons for the termination of their activities.
2. You need to visit the points of other franchise buyers and ask questions of the franchisee.
3. It is better to choose franchisors who have been operating in the market for a long time. In this case, there is a high probability that the franchising scheme has been worked out qualitatively and thoroughly.

Advantages and disadvantages of a franchise for the sale of goods

The advantages of a franchise for the sale of goods are:

• a franchise agreement allows the franchisee to invest less in starting their own business;
• the franchise buyer starts working under a well-known brand and does not spend finances on marketing activities;
• a novice businessman does not need to draw up a business plan and calculate payback periods, as well as look for investors;
• training of hired personnel is at the expense of the franchisor;
• the products are supplied by the franchise owner for sale without the need for the franchisee to invest their own funds.

The disadvantages are:

1. Unscrupulous franchisors often offer attractive, but obviously unfavorable conditions, as a result of which a novice businessman loses large sums of money. For example, franchise owners prescribe in the contract too strict conditions that are almost impossible to fulfill. To secure the transaction, experts recommend signing papers in the presence of a competent lawyer.
2. The opportunity to open your own business with minimal investment increases the number of people wishing to purchase a franchise. Often, in order to become a franchisee, the applicant must prove to the franchisor that he has the skills of successful sales.
3. A novice entrepreneur does not make any management decisions and acts according to strictly established regulations.
4. The franchisor may decide to open his own business in the same region. In the event of termination of the franchise agreement, the franchisee may lose his investment, not having time to recoup them.

Video

The video provides expert advice on choosing and buying a franchise. Filmed by FranchTV.

Most of the projects in the business world often remain unrealized due to lack of funds to start a company. Even the most relevant and unique idea requires financial support, otherwise you can earn money only by selling it. A good way out in this situation is such a type of activity as a franchise without investments for implementation. Where to find it and how to choose, it will be useful for novice businessmen to know.

The essence of franchising is the transfer of a ready-made business model for use, which includes:

• brand;
• ways of organizing and conducting business;
• advertising;
• education;
• established channels for the supply of raw materials.

Given the fact that franchise sellers are already experienced companies, it can be said that a newcomer, along with all this, also receives a target audience that is already familiar with the proposed product. The players of such a deal to transfer the business model are considered to be:

• franchisor - seller;
• the franchisee is the buyer.

The initial fee for selling a franchise is called a lump sum. Its amount and payment procedure is determined personally by the franchisor. Many companies go to meet buyers and offer installments. Its amount can range from several hundred dollars to several hundred thousand.

In addition, on a monthly basis, the user of the business model will have to pay royalties to the franchisor, which is a payment for comprehensive support and assistance in doing business.

What is a franchise without investment

Sometimes it happens that a successful company is interested in the presence of its branch in a certain region. In this case, she selects a regional partner who is granted a franchise for the sale of goods without investment. In other words, such a representative performs the function of a distributor.

Cooperation is carried out on the basis of an agreement, according to which the regional partner is the director of the company representing the interests of the head office in the region. At the same time, he also becomes a partner working under a franchise scheme, that is, without departing from the established model of this way of doing business:

• respects the general concept of the enterprise;
• cooperates with the suppliers indicated in the contract;
• produces only the product or service that the franchisor wants to see on the market.

A franchise without an initial investment is, as a rule, an opportunity not to pay a down payment to the seller. But this becomes possible only if certain conditions are met:

1. The franchisee still covers some of the initial expenses for starting a company. This includes rent and renovation of premises, training of employees.
2. Independent registration of business in authorized bodies.
3. Search for distribution channels.

The filling of trading floors and the supply of goods is usually handled by the main office.

Ways to get a franchise without start-up capital

A franchise from scratch without investments can be presented in several ways. One of them, as already mentioned, is the entry of a successful company into new markets in new regions. In this case, she herself is interested in finding such partners.

But there are a number of cases when you can become an entrepreneur without having any start-up funds:

• opening a company as a result of working as an employee for a franchisor. This path provides an opportunity to enter the world of business not only for those who do not have money, but also for those who do not have at least minimal experience. Many large companies offer their employees special programs that allow them to grow into self-employed entrepreneurs. Having passed such training, an employee who has already gained experience gets the opportunity to develop a completely independent unit of the company as a franchisee;
• receiving funds from private equity funds. Some such organizations themselves offer successful directors of, say, stores, to open a franchise without investment with the participation of the fund. The benefit of such a scheme is obvious - the fund reduces the risk, because it knows the franchisors well and at the same time carefully selects the franchisees. All financial expenses in this type of cooperation fall on the fund;
• development of a distribution network. This model is especially typical for retail, when a well-promoted brand attracts small entrepreneurs to cooperate in retail. At the same time, the model of developing a network of online stores is becoming quite popular, when the franchisee receives the goods only upon the fact of its sale. In this case, there is no need to rent a hall or a trading floor. It is enough just to equip an office for a call center. It is usually used when the franchisor intends to increase the number of sales of his products in the shortest possible time.
• network marketing. Please note: this model as a franchising business without investments will become such if the franchisee is registered as an individual entrepreneur. Otherwise, it will be considered normal freelancing;
• Installment franchises with no down payment are also most common in retail sales. In this case, it is assumed that the lump sum will be divided into several payment periods. A variation of this way of doing business is the provision of goods for sale. Its peculiarity is that it can turn out to be both very profitable and completely ineffective.

Other options that do not require significant costs from the franchisee include:

• opening of sports sections, children's clubs, training centers. Most often, the franchisor will insist on having specialized education and work experience;
• launching a specific type of business. This option occurs when the franchisor brings to the market a service or product that only a specialist in this field can work with. Under such circumstances, the presence of the franchisee's special knowledge and experience becomes more important than his financial capabilities;
• franchising business without investment is possible even when the seller of the business model is still unknown on the market, and therefore he is ready to distribute the first franchises for free, if only to quickly develop the network.

How to get a business model

Offers from large companies, of course, are very difficult to find just like that. To become the owner of a free franchise, you need to carefully study your region and analyze unoccupied niches. After that, you can look for companies that will be interested in this and try to convince them of the need to conclude such a deal.

An important role in the process of how to get a franchise without investment will be played by the personal qualities of the franchisee:

• knowledge and understanding of the brand with which to work;
• ability to negotiate and find arguments;
• management experience.

The algorithm of actions at startup will look like this:

1. Conclusion of the contract and appointment of the franchisee to the position of director of the company.
2. Business registration.
3. Search and repair of premises.
4. Hiring and training staff.
5. Reaching the break-even point and returning the invested funds to the franchisor.

In order for a franchise without a lump-sum fee, royalties and risks to become possible, several rules must be observed:

• find out why this offer is free. It should be clearly understood what the financial benefit of the franchisor will be;
• check the business reputation of the seller;
• carefully study the contract to be signed. It is desirable that an experienced lawyer take up his proofreading;
• evaluate your own risks.

A franchise business offered without a down payment can be implemented in a variety of business areas. You should pay attention to the following:

• sale of food products;
• services sector;
• tourism;
• catering;
• retail sale of clothing and footwear;
• transportation;
• auto business;
• online shopping.

Negative sides of a free franchise

You should never forget that, in addition to the attractive side of the issue, there must certainly be disadvantages, which even experienced entrepreneurs, not to mention beginners, need to take into account:

• fraud. Franchisors do not always behave with integrity, as a result of which the franchise buyer becomes a debtor, from whom all property is taken away through litigation;
• the opportunity to develop a business at one's own discretion under such conditions is completely reduced to nothing. Usually the franchisor dictates all the conditions and very carefully monitors their implementation. With this mode of cooperation, he most often needs an ordinary performer;
• there are practically no franchises that would actually turn out to be absolutely not requiring investments at the start. In one form or another, a novice entrepreneur will still have to provide some funds. Practice shows that franchisors do not really want to deal with those who have no money at all.

This leads to the conclusion - the more loyal the conditions of the seller of the business model, the more likely it is that there may be a catch somewhere. For this reason, it is not recommended to enter into such transactions without legal support.

How to choose a profitable franchise: Video

A franchise without investment is the dream of any entrepreneur. When working according to this scheme, you practically do not need to spend anything. There is a well-known brand, by concluding an agreement with it you can work, and you do not need to deduct any payments - work and earn. This is how the franchisee sees such an offer, but often a franchise without investment for sale involves the purchase of goods and a franchisor-manufacturer.

Popularity, number of offers on the market

Offers from franchisors with a promising “no investment” are very numerous, but it should be understood that it is unlikely that it will be possible to do without financial injections. Well, think about who will offer their popular brand, or rather the right to work under it, give a scheme for launching a new point and will help development with all their efforts if they don’t receive financial gratitude for it. The logical answer is that no one, in any case, there is a benefit for the franchisor in such cooperation.

Important! If the franchisor says that he does not require a lump-sum contribution to the regular payment of royalties, this does not mean that he will not have to invest anything perfect. Often, such a franchise agreement without investments implies the mandatory purchase of a certain, previously agreed, volume of goods that the franchisor produces.

This business proposal is quite profitable, because you can save on payments that are mandatory for other franchises, but not always. Sometimes franchisors go for tricks, stating that the franchise is "no investment." Yes, there will be no lump-sum contribution and royalties. But the first payment can be disguised as a franchisee's training fee, and the second is already included in the form of an extra charge in each purchased product, so when you find such an offer, you should carefully examine whether it is really so profitable.

It should be understood that starting such a business is not very easy in the sense that there are many risks for those who want to “do not wet their feet and catch a fish”, among the most common problems:

1. Lots of scams. The terms of the contract are sometimes so specific. What to call such a type of business as such that does not require investments does not work. For example, in separate agreements there are clauses that the business premises must be owned or purchased immediately after signing the franchise agreement. Definitely - this is a disadvantageous offer, but a fraud, therefore, before signing any agreement, you should show the agreement to an experienced lawyer.
2. Competition. Although there are real offers of this kind, there are not enough of them for everyone, which means that there will be a real struggle between potential franchisees for each contract.
3. Certainly unfavorable conditions for the franchisee may be included in the agreements. For example, too large batches of purchases of goods that objectively will not have time to be sold. In order not to get into such a situation, you should carefully monitor the market and study the contract.

Important! Before agreeing to a franchise for a small business without investment, you should determine what benefits the franchisor receives, it should be obvious. If this is not the case, then there may be surprises along the way of launching a project or its operation.

What types and types of franchises are most often without investments

Not every franchisor is ready to offer his franchise without requiring initial and ongoing payments. There are specific species and types that can work this way.

Most often, these are commodity franchises, moreover, if the franchisor in one person is also the manufacturer of the goods sold through the network.

Most often, such commodity franchises relate to the sale of:

• clothes.
• shoes.
• Food products. In this case, the franchisor is often a large group of companies, and the goods that are sold by his franchisee are produced to the order of the franchisor.
• Jewelry.
• Furniture, items for sleep.

The stores of the network have a common style and interior design, they are recognizable. There are standards regarding the retail space occupied, the location of the store, and other important points that allow TT to be identified as a store of a well-known chain.

Grocery stores, more often supermarkets, operating as franchises without a down payment and royalties often operate under a reverse franchise scheme. This means that they do not require an initial contribution and royalties, even often they are independently engaged in the selection of premises, staff training and other key points for launching a project. The franchisee in such a store no longer works as an individual entrepreneur, but as a manager. All proceeds are transferred to the parent company, which then transfers a certain percentage (15-25%) as an agency fee.

A franchise that offers a product and a name, in addition to the product itself, the franchisee also uses a well-known product brand. In the first case, this is also implied, but here everything is prescribed in the agreement.

Other franchise options, when a whole business concept is provided, operate on a "no investment" basis in exceptional cases, namely:

1. If there is a development of a new region. In order to get the much-desired expansion of the business, the franchisor has to sacrifice certain benefits. Such offers are rare, moreover, they are often offered to experienced businessmen who have achieved some success.
2. Investment by the franchisor. Such situations happen if the company practices the development of its own promising outlet directors (employees) to franchisees. In this case, there will also be no investments from the new partner.

Examples

It will not be superfluous to consider specific franchise offers without initial investments and / or royalties.

Furniture store Diso

You can open this franchise with only 500 thousand rubles, and this is a specific investment in the project. You don't have to pay a lump sum and don't pay royalties every month.

Other important conditions include:

1. Premises - from 40 sq. m., owned or long-term lease.
2. Availability of funds for investment in the specified amount.
3. The room should be located near a crowded place.
4. In order to successfully work on this proposal, the terms of the contract must be strictly observed.

The franchisor claims a payback of 6 months.

ALBA

The company is a manufacturer of high-quality classic shoes made of leather and suede. This product is always in price, which practically guarantees the success of the outlet. There are no fees and ongoing payments, the franchisee is required to:

• Find and repair a room.
• Purchase the necessary commercial equipment, make the technical equipment of the store.
• The goods are provided on a commission basis, the amount of remuneration is determined in each individual case.

The franchisor offers comprehensive assistance. Including training of the franchisee and his staff. Store filling: the assortment is selected according to the size of the retail area and the marketing specifics of the region where the franchisee operates. To determine all these aspects, the project launch team travels to the new partner.

Orby

The Orby children's clothing franchise does not imply a lump-sum fee and royalties, but the investment to launch the project is at least 2.8 million rubles. Specific investments depend on the region and the size of the sales area. The latter, by the way, should not be less than 70 square meters.

Conditions:

• The retail space should be located in a category A shopping center, that is, a large one.
• It is obligatory to have a children's corner, a developing complex in the shopping center.
• Cooperation is possible only on the condition of full compliance with the clauses of the agreement.

Fabretti

The franchisor offers to sell fashion accessories. All that is needed to open this TT is to have funds for investments in the amount of 600 thousand to 1.5 million dollars. It all depends on the type of store. In the first case, this is an island in the shopping center, in the second, a full-fledged store at 25 m kV.

The franchisor's network sells only branded accessories and leather goods. The boutique is monobrand, that is, it represents only one brand.

Important! Interesting feature This offer is an opportunity to purchase the first batch of goods in installments up to 6 months. That is, in fact, to start the project, only funds for renting the premises are needed.

In addition to the desire to work, potential franchisees are also required to have experience in running a retail business in the fashion industry, it is desirable to have free funds to launch a project.

Tom Farr

A fairly popular brand that has long been in demand in the CIS and Russia. Clothing collections are distinguished by individual style, relevance, original cut, convenience and affordable prices.

It is possible to open stores of various formats under this brand without investments, which differ in area, investments to launch the project and a possible margin. What is interesting is that it is the franchisor who repairs the store and creates its corporate identity, and the design project is created absolutely free of charge.

Important! In the event of the formation of unsold remnants of past collections, they can be returned to the franchisor.

The work of each franchisee is supervised by a personal manager and merchandiser. There is access to the "hot line", and around the clock.

The scheme of franchising without investment

In fact, most royalty-free franchise offers work in a similar way, as follows:

1. The franchise agreement is signed.
2. The franchisee rents/buys the premises at his own expense.
3. Repairs are being made in accordance with the concept of the franchisor. Often this is also done by the franchisee, in some cases by the franchisor.
4. The purchase of commercial equipment, which is necessary to launch the project, is underway.
5. When all this is ready, the franchisor provides the first batch of goods. Often it can be purchased in installments, with payment in the course of work.
6. Further, the purchase of goods occurs at a certain frequency. For grocery stores - after 2-3 days or once a week. For shoe clothing stores every month or 1 time per season.

Of course, in the process of work, the franchisee must comply with the standards of work, customer service, maintain a corporate style in design, participate in promotions and advertising campaigns.

Conclusion

As you can see, in its pure form, franchises without investments do not exist. Although there are quite profitable offers that do not involve making a lump-sum fee and monthly deductions in the form of royalties. All offers of franchisors where they promise no investments should be treated carefully, carefully rechecked.

Franchise from scratch without investments - it sounds tempting, but is it real? In most cases, the purpose of entrepreneurship is to make a profit. Consider a businessman who created a company from scratch, established a business process, business connections, made his product or service recognizable and in demand among the target audience. Will he want to give all this to a stranger without compensation, without receiving any benefit? The answer is obvious.
To receive the product, you need to pay a fee for it. A franchise is a product that is presented as a set of benefits, including a trademark, business model, marketing and economic plan. It is impossible to get a really working franchise without investments and costs. Therefore, the answer to the question of how to open a franchise business without investments, the answer is no way.
Next, we will look at what is actually meant by a “franchise without investments” and how to choose a really working project with minimal costs.

How to open a franchise without investments

A franchise without investments is a business project that implies the absence of a lump-sum fee and regular payment of royalties to the franchisor. You will have to invest in the arrangement of the outlet, the purchase of goods and related equipment on your own. The franchisor can provide loyal conditions for the supply of goods, a deferral of payment for its cost, as well as favorable conditions for the purchase of equipment.
The best and most common variant of the so-called franchise without investments is the opening of a retail outlet for the sale of goods produced by the franchisor. This type of cooperation is beneficial to the franchisor due to the increase in its wholesale sales, the profit from which covers the lack of additional payments from the franchisee.
Also, the costs of organizing a business can be avoided if the franchisor plans to open a branch in the regions or abroad in order to expand the company and its network. In this case, the franchisor can cover all the costs of opening a point, but at the same time, the business will entrust only an experienced businessman who can bring profit to the open point and not spoil the company's reputation.

Benefits of a franchise without investment

Opening a franchise business without investing in lump-sum payments and royalties is most reliable in the field of trade. A franchise without investments for the sale of goods has a number of advantages:

• a point of sale with a name known to consumers;
• loyal target audience;
• a product that is popular with consumers and does not require promotion;
• favorable conditions for the supply of goods.

Also, the franchisee can provide a deferment to pay for the purchased goods, which is an important bonus at the initial stage of business development.

Disadvantages of a franchise without investment

Free franchises for beginners without investment have more risks than benefits. If you decide to open a business, a franchise without investment may turn out to be a fraudulent scheme on the part of an unscrupulous franchisor.
The reality is that the market today is overflowing with seemingly tempting franchise offers that will bring nothing but losses and debt obligations. Therefore, before signing a franchise agreement, carefully study all the conditions together with a trusted lawyer.
Another disadvantage is the high competition as franchises gain more and more popularity. Favorable franchising conditions and minimal costs lead to high competition in the chosen industry.

How to reduce startup costs

To explain how to reduce costs at the initial stage of creating a business, consider the example of opening a retail outlet. You will reduce start-up costs if:

1. Agree on the timing of the sale of the purchased goods in order to avoid stagnation and delay.
2. Analyze the target audience and make a forecast of sales volumes.
3. Discuss with the franchisor the required volumes of supplies of goods.
4. Consider advertising costs.
5. Agree with the franchisor on the grace period at the initial stage.
6. Agree with the franchisor on the possibility of taking the goods on credit.

Franchises without investments for beginners

Free franchises without investment for novice businessmen carry many risks associated with a lack of experience and knowledge of the specifics of the activity, as well as insufficient legal literacy for a detailed study of the contract.
We recommend that novice businessmen pay attention to low-budget, but not free franchises, which require comprehensive support from the franchisor. This will help the inexperienced franchisee build a profitable business. Without the necessary knowledge, it is difficult to understand whether it is worth starting work on the chosen franchise, how effective the business project is, whether it will bring benefits.
We suggest that you familiarize yourself with the offers of franchisors who do not take a lump-sum fee and royalties, but at the same time, investments will be required to start a business.

Catalog of franchises without investments in Russia

Consider the franchises that actually work in the Russian Federation without investments in 2018, which do not require payment of a lump-sum fee and royalties:

• Tandoor Bread is a bakery operating since 1985 with 75 franchise partners. There are no lump-sum payments or royalties. Capital investments of 200 thousand rubles. Payback period is 2-3 months.
• AKKOND is a confectionery distribution network that has been operating since 1943 and has 270 partners. There are no royalties or lump-sum payments. Starting investment 450 thousand rubles.
• Sea of ​​Tea - a chain of tea shops with 50 own points and 8 franchises. There are no royalties or lump-sum payments. Investments of 500 thousand rubles for the purchase of goods, equipment and store design.
• Perrino is a sales outlet for sleep products. It has been operating since 2004, has 25 own outlets and 178 franchise outlets. There is no royalty or entry fee. Investments 500 thousand rubles. Payback period 3 months.
• SAMURA is a branded knife store from Japan. It has 124 franchise partners. Investments amount to 300 thousand rubles. There are no other additional costs.

Catalog of franchises without investments in Belarus

Current franchise offers without large investments, which are presented for the Belarusian market:

• tamm'antimebel is a network of retail outlets selling original design furniture. The company has been operating since 2003 and promises a payback of the project in 3 months. Investments 49-750 thousand rubles. There is no royalty or entry fee.
• SILVER SPOON is a retail outlet selling branded children's clothing. There are no royalties or lump-sum payments. Investments 350 thousand rubles.
• Mangosteen is a network of vending machines with children's toys, souvenirs and jewelry. Investments 240 thousand rubles. There are no additional payments.
• Kitchens VARDEK is a network of furniture kitchen showrooms. Investments amount to 150-500 thousand rubles. There are no additional payments. Payback period 1-2 months.
• Ringing Cedars is a retail outlet for the sale of cedar products.
  There are no royalties or lump-sum payments. Investments of 120 thousand rubles. The payback period of the project is 2-4 months.

In conclusion, we note that it is impossible to buy a franchise without investments, so it will not be possible to completely avoid expenses. When choosing a cheap franchise, be careful and study the terms of the contract in detail. Even before signing it, read the opinion of other franchisees working with your chosen company and make sure whether the project is profitable and whether it is worth opening a business on it.