Franchise "Pyaterochka": reviews. Nuances of starting a business
Franchising is a modern and very convenient form of relationships among businessmen. The finished model significantly contributes to the realization of any idea.
The franchise Pyaterochka has long deserved special popularity. This supermarket chain is the Russian brand of the X5 Retail Group.
Formation of assortment of each outletis carried out depending on the daily demand of the buyer, whose place of residence is nearby. Target group is a person with average earnings, therefore each supermarket tries to adhere to low prices. The attraction of additional customers is made through the establishment of discounts on a certain group of goods or holding shares for any period of time.
The history of the development of supermarkets "Pyaterochka"
Opening of the first supermarket "Pyaterochka" happenedin 1999 in St. Petersburg. At that time, the company "LEK" very rapidly developed - it took only six months to conquer the Moscow market and the opening of 15 stores.
In 2002, the leadership of "LEK" decided to tryanother direction of business development - so there was a franchise "Pyaterochka". In 2005, there was an accession to the chain of stores "Kopeika", "People's Penny" and "Crossroads". At the same time, the holding company was renamed into X5 Retail Group.
At present, the Russian market is filled withmore than 6000 stores of the network, the opening of most of which contributed to the franchise Pyaterochka. The feedback from the buyers of the business is exceptionally positive, as the company's executives provide start-up entrepreneurs with comprehensive support at all stages of development.
Reverse franchise. Principle of operation
Constantly developing since 2002, the franchise Pyaterochka in 2009 changed its main strategy, namely, it began to adhere to commodity (reverse) franchising.
Such cooperation is based on the followingprinciple: first the franchisee and the head office of X5 Retail Group sign an agency contract, according to which a novice entrepreneur receives more than 90% of the goods (except for drinks containing alcohol) and complete management of the store.
The sale of goods completes the implementation of the collected proceeds and the subsequent transfer to the account of the franchisor. The agency fee is 13 to 17% of the total sales.
Of the amount received, the franchisee must charge employees' salaries, pay taxes, fees, utility expenses, and leave funds for the maintenance of the store.
The rest will be the personal profit of the franchisee.
Cost of a franchise
How much does the Pyaterochka franchise cost? 1,000,000 rubles, and the amount of initial investment is about 8,000,000 rubles.
Despite the presence of such a high entry threshold, the payback of the store comes within 1-2 years.
Advantages of the franchise offer
Individual entrepreneurs, independentlyopened grocery stores, often can not compete with retail chains, as they simply do not have enough resources. X5 Retail Group is known for minimizing costs - a reverse franchise system. This is a business model according to which the buyer (franchisee) receives from the seller (franchisor) the right to use a well-known trademark and unique entrepreneurial technologies, and transfers the proceeds to the account of the parent company monthly and receives the agent's agency fee specified in the agency contract.
The reverse franchise Pyaterochka has the following advantages:
- work with a popular brand, which in turn ensures a quick start to the business;
- a proven model of the development of the store;
- availability of software and finished documentation;
- turnover is fully provided by the parent company;
- full marketing support;
- corporate training.
The concept of a franchise
Open a store "Pyaterochka" for a franchise can any representative of small and medium-sized businesses. Reverse franchising requires the franchisee to consistently perform the following actions:
- Studying and signing a set of documents.
- Payment of a lump-sum payment.
- Selection of suitable premises in accordance with the standards established by the network.
- Acquisition of the necessary technological and commercial equipment.
- The recruitment of employees with subsequent training in the training center X5 Retail Group.
- Opening of the store, the beginning of sales.
- Manage the work of staff, control sales and inventory of inventory.
- Accurate adherence to technologies transferred by the parent company, as well as unconditional submission to each written order of the regional director.
- The contents of the store in proper condition, regular payment of wages and timely settlement with the budget.
Duties of the franchisor
In accordance with the chosen form of the store, the reverse franchise Pyaterochka can cost from 6 million rubles. and higher. In this case, the franchisor is obliged:
- To transfer data about each business process, document system, brand-book, as well as inform the franchisee about technologies and know-how, about technological projects of the store, engineering solutions, etc.
- Install the software and regularly update it.
- Advise the entrepreneur in the area of repair, construction work and the acquisition of the necessary pieces of equipment.
- Organize the supply chain and ensure that only proven suppliers or their own distribution center are allowed to cooperate.
- To provide possible assistance to ensure that alcoholic beverages are brought by franchisee suppliers.
- Involve the franchise store in the marketing and advertising campaign of the network.
- Monitor compliance with the terms of the franchise.
- To pay agency fee.
- Carry out a scheduled audit.
Requirements for the buyer
Franchise "Pyaterochka" allows the newly-made partner to count not only on stable income, but also to be sure that he will not be left in a difficult situation.
In this case, the potential buyer must meet the following basic conditions:
- Have own or attracted investment.
- Own or lease a suitable retail space.
- A franchise store should be located in one of the following areas of the city: residential / sleeping / densely populated or lively place, which is inherent in high customer traffic.
- A large highway may be located nearby.
- There must be access roads and a discharge place.
- Providing the possibility of pallet delivery of goods.
- Convenient parking for buyers.
- Telephone line and Internet.
- Water supply, combined extract and input ventilation, air conditioning, sewerage, burglar alarm, heating.
- Advertising sign "Pyaterochka" should be clearly visible from any direction around the clock.
Requirements for premises
Estimation of profit and expenses of the selected premisesis carried out by specialists of X5 Retail Group. The most important factor of the whole business process depends on the location of the trading area, the population of the district, the number of competitors and infrastructure - how quickly Pyatyorochka's franchise will pay off. Reviews in Moscow on cooperation with this network are mostly positive.
The only thing that confuses potential partners is a rather high initial capital, because the modern market offers many franchises with much less value.