New measures have been introduced to support franchising in small and medium-sized businesses in Moscow. When opening a new company, franchisees will be able to receive subsidies of up to 1 million rubles, however there are some restrictions. Experts believe that these subsidies are beneficial only to small companies.
Franchising entrepreneurs in the capital will be able to compensate up to 1 million rubles for the purchase of equipment when opening a new company. The decision to introduce subsidies, applications for which will be accepted in September and October, was approved by the Moscow government.
According to the head of the city department of entrepreneurship and innovation development Alexei Fursin, by the end of last year the number of franchisees in the capital reached 11,500. He emphasized that the demand for franchises was growing year by year, but did not specify the general fund for new subsidies for small and medium-sized businesses.

It follows from the resolution that companies operating on a franchise for not more than a year can receive benefits. To apply for a subsidy, annual financial statements, data on the number of employees and salaries, as well as a report on taxes paid and documents confirming the purchase of equipment are needed. According to the decision of the authorities, only entrepreneurs who work under a commercial concession agreement can apply.
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According to Protopopov, similar franchisee support programs have already been launched by authorities in other regions. However, the Subway franchisees did not have time to use them, since the subsidy fund was small. If in Moscow the fund is big enough and the government will carry out wide advertising, then the demand for franchises can grow up to 30%.
Ernesto Gonzalez, senior vice president of Rosinter Restaurants Holding, called the subsidy of 1 million rubles significant for a small business with investments up to 5-6 million rubles. For this reason, the support program approved in the capital will not suit those wishing to open the IL Patio restaurant, where at least 15 million rubles are needed.
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Sources: https://www.forbes.ru
Author: Anna Dorozhkina