Most of franchise units are situated in the biggest Ukrainian cities - such as Kharkov, Dnepropetrovsk, Donetsk, Odessa and Lviv

Report about franchising in Ukraine

Franchise agreements in Ukraine are signed from the middle of 90th, however today in the Ukrainian legislation there is not a term "franchising". In jurisprudence there is a term "commercial concession" and legislation is used on the basis of it. However it doesn’t hamper the development of franchising and businessmen find the the way out from such situation.

Different sources name a number of four hundred franchisers in Ukraine. But for all that, the actually situation is about two hundred of them develop active and constantly. Other are the Russian companies, which want to get into Ukrainian market or Ukrainian companies, which once has opened one or two franchise units.

Part of conceptions is adopted from abroad, especially in the field of trade and services. Greater part from foreign conceptions is Russian. Another are from Poland (Atlantic, Cropp Town, Reporter, RuckZuck), Germany (Liqui Moly), USA (International Kids Club, FasTracKids, Crestcom, Sport Life), Italy (Canti Cucine, Colours&Beauty), France (Frederic Moreno, Catimini, Carling), Great Britain (ChipsAway, Hostel) and others. Majority of them – about 60% – opens an own representative office. So, for example, a company Delta Sport develops such known worldwide brands in Ukraine, as Nike and Mexx; MTR-group is engaged in distribution of Broadway, Motor Jeans, Tom Tailor, KENVELO. Other give a preference to collaboration with one partner which gets a right to development of territory of whole country – Helen Doron Early English, FasTracKids and so on.

Every day franchises at the Ukrainian market become more various, new industries and technologies appear. A price range also enlarges: franchisee can choose from cheap franchises of domestic services or rental and expensive franchises of fashionable restaurants and production.

Most Ukrainian franchise systems are concentrated in the capital and only small percent of franchises are by birth from large regional centres. In addition, most of franchise units are situated in the biggest Ukrainian cities - such as Kharkov, Dnepropetrovsk, Donetsk, Odessa and Lviv. But many towns are not yet acquainted with franchising. There is a tendency of glutting the cities and companies redirect in openings of franchise units also in smaller towns.

A crisis amended plans of development of the most franchise systems, majority of franchisee are operating in regions, where now there is rather difficult economic situation. However much, the periodic openings of other franchisers refute stability of this tendency. The most popular franchises in Ukraine nowadays - are those, which need up to $10.000-15.000, such as: street-food, vending, tourist business and so on.

Majority of foreign companies open an own representative office in Ukraine,
other give a preference to collaboration with one partner which gets a right to develop the territory of whole country