Pyaterochka has started offering franchise stores to businessmen, a representative of the retail chain told RB.RU. Previously, franchisees in partnership with a retailer could only open an outlet from scratch.

Pyaterochka began offering existing franchises to entrepreneurs
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The initial investment to purchase an existing franchise store will average 3-5 million rubles. For comparison: opening a point from scratch will cost about 20 million rubles.

Through an agreement with the parent company, the franchisee undertakes to carry out the future reconstruction of the store. The exact amount of the investment will depend on the specific premises.

This format of cooperation is beneficial for the retailer. According to Valeria Ostasheva, director of attracting franchisees at Pyaterochka, turnover in franchised establishments can be 10-15% higher than in the chain’s own stores, due to the high participation of the partner.

  • The conditions of cooperation between the franchisee and the retail chain do not differ from those of the launch of a new establishment. The network uses a reverse franchise model, under which it takes care of all issues related to billing, pricing, logistics and marketing. The franchisee’s task is to effectively manage the store and its equipment and sell the products.
  • Each month, the partner receives an agency commission of up to 25% of the store’s revenue; there is no need to pay royalties.

The list of items available for purchase in the store is available here. The list contains offers from different regions of Russia.

All presented points work, for each of them you can see the average revenue and profit, the average check and the number of clients, the estimated payback period.

Currently, the Pyaterochka franchise network includes 370 stores in 36 regions of Russia.

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Author:

Anastasia Marina

Source: RB

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I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.

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