franchise association\'s presentation

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F R A N C H I S E A S S O C I A T I O N UKRAINE

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Page 1: Franchise Association\'s Presentation

FRANCHISE

ASSOCIATION UKRAINE

Page 2: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Statistics of franchising in Ukraine

Register "Networks in Ukraine" 09.10.2007

Segment Branches Brands Franchisers Units

Retail 31 627 164 12166

Servises to individuals 17 139 45 4159

Public food 14 133 59 975

Information 7 50 9 40

Servises to business 6 51 15 257

Manufacturing 5 15 7 73

Vending 4 5 2 500

All in all 84 1020 301 18170

Is held by Teamvision Ukraine for Franchise Association

Page 3: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Statistics of franchising in Ukraine

At the end of the year there were:2001 – 402002 – 702003 – 1002004 – 1402005 – 2262006 – 2682007 – 303 franchisers

Page 4: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Reserve of franchising – network companies

These companies are different from franchise by absence of franchise packages and they do not sell franchise. The quantity of franchises will grow constantly.

It’s also pleasant to enlighten that the quantity of branches in franchising grew to 84 (year ago – 74 branches).

Page 5: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Tendencies

We forecast constant growth of quantity of franchisers both from modification of own networks and from the imported brands from outside.

Page 6: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Franchise Association

Franchise Association started its work on December 29th of 2001.

Its task is to present interests of networks and its operators, that use franchise agreements, at governmental level, provide practical assistance for organisation and promotion of franchises.

Page 7: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Franchise Association

Same time with active work on the national level, Association establishes relations with foreign and international associations, studies experience of other countries in franchise sphere and standard acts of it.

Page 8: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of membership in Association

I Power of membership for existing frnchisers

II Power of membership for suppliers

III Power of membership for potential and starting franchisers

IV Power of membership for potential franchisees

Page 9: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

I Power of membershipfor existing franchisers

Power of economy Power of information Power of financing Power of influence Power of experience Power of communication Power of partnership Power of promotion

Page 10: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of economy

Membership in Association provides considerable discounts for participating in events and services that are necessary for development of network:

Expo “Franchising" Franchise catalogue Magazine "МОRS: methods of optimum network development" Franchise presentations during educating regional seminars, held

by Association Receiving special prices from suppliers, consultants who are

members and partners of Association

Page 11: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of information

You will be regularly informed of vital events of branch through electronic and printed resources:

www.franchising.org.ua – Association’s web-site, that bears information about projects, events, services and members

e-mail leaflets – You will get information on franchise issues and Association’s activities, business forums, round tables, conferences etc.

www.e-franchising.org.ua – You can write and comment messages on forum. It enables to inform of events and get news more dinamicly

Page 12: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of information

You will be regularly informed of vital events of branch through electronic and printed resources:

MORS: methods of optimum network development – magazine about franchising, official printing body of Association. Franchisers may share experience and news on its pages, get vital information about market and its events

Franchiser hot-line – members of Association may get information about market, events, methods of building and management of network via telephone or e-mail

Page 13: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of financing

Crediting of potential franchisees – Franchise Association is working on the common program of crediting potential franchisees with Privat Bank. This will enable franchisers not to refuse a franchise to those who have premises and experience but doesn’t have enough financial resources. More favourable crediting conditions make profitability of franchise higher

Fundraising for investment in network development Paying your accounts in your name through our account in

foreign currency (we have dollar, euro and rubble accounts) it the cost is 2 % of the transferred sum

Page 14: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of influence

Franchise Association is registered in the form of union of employers, that enables it to present the interests of its members at the governmental and local levels in the most efficient way.

Association is represented in Union of entrepreneurs of Ukraine attached to the Cabinet of Ministers of Ukraine, in Social expert council for legislation problems, in Confederation of ngos of unions of entrepreneurs “New formation union", in Social board of State committee of Ukraine for regulatory policy issues and entrepreneurship, in Social board attached to the Head of State customs service of Ukraine.

Page 15: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of influence

The issue of specialised law on franchising was raised since the very start of Association’s work. In 2002 the project of law wasn’t passed to the Parliament partly due to the efforts of Franchise Association.Today Association is working on the project of franchise law that will promote development of franchising in Ukraine.

Page 16: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of experience

EducationAssociation holds selection, training and re-training of personnel of:

franchise departments other functional departments separated units

During the series of educating seminars on topic “Franchising as a method of stable and long lasting business" Association holds corporate seminars for training personnel of companies – future franchisers, managers of selling departments, dealers, distributors.

Seminar may be also held for the group of potential franchisees (partners, distributors, directors of private units).

Page 17: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of experience

LiteratureFranchise Association publishes literature on theoretical and practical aspects on franchising:

Seriously about franchising. Electronic library on franchising. Franchising from A to Z: Glossary. Authors Anna Tsyrat,

Yevgeniya Kryvonos. First in CIS manual of such a kind. Methodic manual for the future participants of franchise networks.

Consists of practical advices for those who is going to become a franchiser or a franchisee.

Page 18: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of communication

Organising delegations to international forums, expos and conferences;

Inviting and organising trips of representatives of foreign association and international networks;

Organising round table discussions, sittings of franchise club, thematic workshops of franchisers.

Page 19: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of partnership

Becoming a member of Association You get access to the informational resources of its partnership organisations.

E-mail leaflets of Association is also spread through the data bases of these organisations. You get the news of our partners, you can attend them and search for partners among members of these organisations.

Page 20: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of promotion

The member of Association has the right to free: placing the banner on the web of Association in the column

“franchises" special page on Association’s web in “Members" section

www.franchising.org.ua/franchiser, where You can place any information about network and offer of partnership for potential franchisees

corporate or personal e-mails [email protected] or [email protected]

spreading your information via e-mails to data base of Association

receiving data base of potential franchisees that turn to Association for a franchise

Page 21: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Power of promotion

Member of Association gets exclusive conditions for:

participation in collective stands of Association on expos, forums, both in Ukraine and abroad;

participation in events of Association; placing information in franchise catalogue; placing information in MORS magazine.

Page 22: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

III Power of membership for potential and starting franchisers

registering trade marks and supporting franchise agreements developing franchises organising consulting on issues of network development standardising franchises that are offered for sale independent expertise of fulfilling franchise agreements

These services are provided with the help

of TeamVision company, official consulting

body of Association.

Page 23: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

IV Power of membership for potential franchisees

search of regional partners; organising business meetings with Ukrainian and

foreign franchisers; search of a network for entering without changing

branch of activity both in Ukraine and abroad; search of a network for starting a new business

inside of it.

Page 24: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Fees to Association

The entry fee to Association – 1000 hrn. for all categories of members.

Considering individual needs and peculiarities of potential members, Association may set individual sizes of membership fees by signing Individual membership agreement, that will explain services and volume of them, that is necessary for a member.

Page 25: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Fees to Association

Size of quaterly membership fees for categories of members: existing franchiser:

standard – 40 hrn. per unit in network, not more than 1400 hrn. extended – 30 hrn. per unit in network plus 1 % of sold franchises

by Association existing franchisee:

“own" – 20 hrn., if franchiser is a member of Association; “not own" – 70 hrn., if franchiser is not a member of Association;

potential franchisers – free if package and agreement is being prepared by Association

potential franchisee – 0,5 % of the sum of bought franchise, 2 % of sum of attracted finance

suppliers – 2 % of incomes from members of Association other companies – 100 hrn.

Page 26: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Members of Association

Franchise Association unites 79 companies, 66 of which represent franchise networks. Our members are entrepreneurs from Ukraine, Russia, Portugal and the USA.

Page 27: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Page 28: Franchise Association\'s Presentation

Ассоциация зарегистрирована в декабре 2001 года

Contacts

Head of Directorate: Andrey KryvonosТ +380 (44) 592.8615M +380 (67) 466.8649

Department director: Sergey GirovetsТ +380 (44) 233.0361М +380 (67) 963.3958

Department director: Yevgeniya KryvonosТ +380 (68) 201.3675M +380 (67) 291.9771

Department director: Illya RevenkoM +380 (50) 446.6610

Office: Klinichna str., 23-25, of. 60,Kyiv, 03110, UkraineF +380 (44) 249.6764info@franchising.org.uawww.franchising.org.uawww.e-franchising.org.ua