Franchising as Economy Driver: Moscow Hosts Franchise Expo

Nearly 5,000 representatives of the global franchise industry from over 20 countries got together at the Moscow Franchise Expo, which took place at the Digital Business Hub on May 28-29. This year, the event was held in conjunction with the first two days of the Moscow Entrepreneurship Week. Fourteen companies from Russia's capital city participated in the event under the umbrella brand Made in Moscow. 

Founders of large franchise projects, owners of concepts and brands and their partners, as well as beginning and experienced entrepreneurs, met at the forum with representatives of government authorities from SCO, BRICS and EAEU countries to discuss trends, make new contacts and find out what opportunities the franchise industry can offer today.

The plenary session “Franchising as a driver of the global economy and a tool for the implementation of national projects” was devoted to solutions and recommendations for federal and regional policy makers.

Speakers included Vladimir Platonov, president of the Moscow Chamber of Commerce and Industry; Agnessa Osipova, president of the Russian Franchising Association; Alexander Braverman, CEO of Federal SME Development Corporation; Alexey Fursin, head of the Moscow Department of Entrepreneurship and Innovation; Chantal Zimmer, president of the French Franchise Federation; Italo Bussoli, president of the Italian Franchising Association; Susan Su, director of China Chain-Store and Franchise Association, and others.

Research shows that franchising is one of the most sought-after business models in Russia, and its popularity is increasing every year. At the same time, Moscow sets the tone for the rest of the country: on average, the Moscow market of franchises grows at 10–15% a year.

„Last year, the market grew 19%. More than 11,500 business outlets of 500 brands operate under the franchise model, including dining establishments, coffee shops, sporting goods stores, etc. By 2025, the number of franchises in Moscow is expected to reach 20,000,“ said Alexey Fursin. „The franchise market has great potential in megacities as well as in small towns. Buying a franchise provides an opportunity for franchisees to build a business on something tried and true. For the Government of Moscow it is very important to support franchising as a really working and efficient model for small and medium-sized businesses. Therefore, this year the Moscow Franchise Expo 2019 is included in the extensive program of the Moscow Entrepreneurship Week, and the Breakthrough of the Year award has a special category for franchisors.“

Agnessa Osipova is confident that it is franchising that creates a healthy competitive environment. It drives the quality of goods and services, facilitates the development of new products, and contributes to the expansion of the market. According to her, Russia has a worthy place in the global franchising community – the country is included in the Strategic Franchising Group and is a member of the World Franchise Council.

In parallel with the business program, the event featured an exhibition of franchise projects, where large brands from all over Russia (Kroshka Kartoshka, Gemotest, Mosigra, Pyaterochka, Rybset, etc.) presented their concepts. Moscow was represented by a joint Made in Moscow stand with 14 local companies from various fields of business: ice cream and desserts manufacturing, fast food, smart services, sports education, gaming, and much more. 

At a dedicated Franchise Sales Corner, entrepreneurs had a chance to purchase franchises under special terms, with discounts on the lump-sum and royalty payments reaching up to 50%. 


2 june 2019