The number of applications for the purchase of a franchise in Russia decreased by 12% yoy. This is reported by Kommersant with reference to a study by Franshiza.ru.
The pandemic has worsened the state of affairs in the franchise market. From April to October 2020, the demand for business models decreased, especially in the catering and fashion stores. The number of such franchise outlets decreased by 24% less year-on-year. During the spring lockdown, every fifth franchise outlet closed. The demand for franchises in September added 15%, and from the second half of October again showed a negative trend - minus 8%.
Only pharmacies and grocery stores showed growth. The number of franchised pharmaceutical companies increased by 21%, and grocery stores by 23%. Partner points in the service sector have increased by 15%. The increase occurred mainly due to the points of issue of orders of marketplaces. During the pandemic, 72% of franchisors did not abolish royalties for partners, but 56% of them still reduced their fees. Over 80% of surveyed franchisees did not receive help from the Russian authorities during the crisis or did not ask for it.
Author: Anna Dorozhkina