Russian Franchise Association (RAF). RAF represents the interests of the Russian franchise at all levels of government, public organization, Sales company, private face. Start to read the Tips to Do Business in Russia guide for professionals. And get information about Jobs in Russia and employment news. The Association acts as a bridge linking the stakeholders and consolidates their potential, serves as a permanent forum for the exchange of information and ideas, conducts research. One of the main goals of the association is to ensure the development of the institution of franchising in Russia , as well as improving the legal and business environment in which entrepreneurs operate. RAF produces informative publications , conducts seminars, organizes exhibitions and conferences, generates business delegation on franchise exhibitions and important events taking place outside Russia. The RAF is a full member of the World Franchise Council (WFC), has working relationships with major Russian and foreign public organizations of employers. Head of the Russian Franchise Association (RAF) president, chairman of the Board of Directors Merab Elashvili (Ben-E). Operational management of the next Executive Director Yury Mickle. Please also come to visit our popular Franchise Opportunities in Russia Blog Site with Videos, where you can Find, Offer or Search for more Franchise Information and Business Opportunities in Russia.
The franchise in Russia: Huge opportunities in a big market
Though the current turnover of the Russian franchising market makes up only 3.5% out of the whole value which is 3 times less than, say, in the USA, it has an enormous development potential. It seems obvious now when such giants as Subway, Baskin Robbins, Zara and H&M are expanding in the Russian market; however, at the beginning of the 2000s only some people realized the bright future that lay ahead of franchising. One of the first persons to grasp it in time and to assess perspectives of Russian franchising was Ekaterina Soyak, head of EMTG, who 11 years ago launched an annual exhibition known as BUYBRAND Expo. The first exhibition barely managed to attract 20 franchise exhibitors. Nowadays BUYBRAND Expo is not just the most significant event for Russian franchising, but is also part of TOP 5 global franchise business exhibitions and the largest exhibition in Eastern Europe and the former Soviet states. Traditionally BUYBRAND Expo is supported by the Russian Franchise Association, the Chamber of Commerce and Industry of the Russian Federation, Moscow Chamber of Commerce and Industry, “OPORA Rossii”.
The Main Problems of Franchising in Russia
The solution of many economic problems of modern Russia requires new economic mechanisms. Franchising is one of such mechanisms. One can assert that nowadays franchising is the only known instrument allowing to increase the efficiency of small business. It gives the possibility to unite the advantages of small and big businesses. In Russia the interest to this economic instrument revived in 1990-s when practically simultaneously some franchise systems, both domestic and with invested capital, appeared. However excessive hopes for the development of franchising have failed. Nowadays it makes sense to analyze the arisen problems and reasons which led to the appearance of such hopes. The most important economic problem of franchising in Russia is absence of stability. Returning to the definition of franchising, firstly it is a system of relations which is enforced once again by the system of contracts. Naturally such system, also uniting economically independent entrepreneurs, becomes inertial. Last decade, in which the rapid development of franchising in Russia began, is notable for the absence of stability in economy, constant ups-and-downs of country’s economy, which lead to the same ups-and-downs in demand for all kinds of goods and regular redivision of property. All this can not but affect franchisees.