Franchising is one of the best ways to open your own business in the modern world. Entrepreneurs working on it receive a unique opportunity not only to operate under an already well-known name, but also to minimize all the risks that may arise during the conduct of business. And also connect to special modern computer technologies and undergo training from specialists absolutely free of charge. It is worth noting that today one of the most popular is the fix price franchise. What is this “set of benefits”, what are the conditions for joining them, what do people who already work with Fix Price say that all this will be discussed later in the article.
A bit of history
Fix Price has been operating in Russia since 2007. During this time, she managed to spin up well, become incredibly popular among people with low and medium incomes, and also acquire many of her own outlets (over 250) located in the largest cities of the country. The number of franchised supermarkets has long exceeded one thousand, which indicates that businessmen trust the franchisor and are not afraid to have a common business with him. We should also say about the assortment of stores. In each Fix Price supermarket, today there are more than two thousand items of goods that can be divided into several groups:
- drinks and food that can be stored for a long time;
- household goods - from pens and other stationery to accessories designed to decorate the interior;
- decorative cosmetics and hygiene products (wet wipes, lipsticks, eyeshadows and so on);
- various dishes - glass and plastic;
- items of clothing (socks, caps, mittens and other inexpensive goods);
- household chemicals - detergents for cleaning dirty places and washing dishes.
As a rule, all products are sold at a fixed and very pleasant price for the buyer. Therefore, today all Fix Price stores are highly visited. People come to them even from other areas.
Franchise Summary
The company launched its own Fix Price franchise in 2010. Since then, a large number of businessmen have joined it - both beginners and real "sharks" of their own business. No wonder, as it is very profitable. Firstly, an entrepreneur does not need to form an assortment and set prices; all this has already been done for him. And secondly, the number of visitors, even in small towns, usually exceeds 100 people per day. The daily revenue from the sale of goods is very good - from 35-40 thousand rubles. In addition, the franchisor is ready at any time to provide you with timely and competent support.
Franchise Pros
To open a “Fix Price” franchise in Yekaterinburg or in any other city, just contact the owners of the company and declare your desire. After all the documents are received, the franchisee will be able to move on to running his business. At the entire stage of the organization of the business and its work, he will receive free analytical support from specialists from the main office. They will help him not only to stay afloat, but also to gain a leading position in the national market, as well as grow monthly, make good profits and develop further. Also, the advantages of the Fix Price franchise include:
- constant updating and addition of the assortment with new products (carried out by the main company);
- the opportunity to become a full-fledged business partner;
- the ability to manage product inventories and the entire business using SAP R3 programs;
- lack of need to organize a warehouse (all goods are stored on a single base);
- Active advertising support from the franchisee (you do not need to spend money on it);
- payback in six months.
Another unique advantage of the Fix Price franchise is that immediately after the expiration of the three-year contract, its owner can very profitably sell his store and put all his money into organizing a new, already own business. It is worth noting that not all franchisors provide this opportunity to their colleagues. If you have already watched other franchises, then, no doubt, you know about it.
Franchise Cons
You can talk for a long time about the benefits of working with a company. But it is worth noting that it was not without drawbacks either. By cons of the franchise "Fix Price" businessmen working on it include:
- high initial investment - from 3 million rubles;
- lack of ability to independently set prices for goods;
- low margin on products purchased from the company - no more than 30%;
- high staff turnover and the lack of a motivation system for employees.
All this must be remembered when considering such an important issue, whether to open a “Fix Price” franchise or not. But do not forget that other businessmen respond positively and often only benefit from it.
Franchise Buyer Requirements
To join the Fix Price franchise, you must fulfill a number of conditions, including:
- register as an individual entrepreneur or LLC (the company does not cooperate with individuals);
- hire polite, tidy and competent sellers, cashiers and consultants for your store;
- decide whether you will bookkeeping on your own or entrust to specialists sent by the company;
- find a room with an area of 200 square meters. meters;
- arrange it in accordance with the requirements of the company;
- pay the franchisor for joining his business.
You must also be prepared for the monthly transfer of royalties and the investment of your funds, including proceeds from the sale of goods, in the development of the network. And also to the rapid influx of buyers. Especially there will be no time to sit.
Room requirements
The conditions of the Fix Price franchise are such that its acquirer will have to seriously bother with finding the right place. Not everywhere there is a large retail space for the organization of the store. In small cities, they can all be occupied by other entrepreneurs, and considerable funds will have to be invested in the construction of new ones. This should be remembered even before you decide to join the network. If the premises are more than 200 square meters. meters was successfully found, it is worth paying attention:
- its type (detached building, part of the room);
- floor (first or second, ground or basement);
- location (the entire store should be entirely on the same level);
- design features (regular rectangle);
- the presence of separate entrances (there must be at least two of them);
- the presence of an unloading zone (a truck should freely approach it);
- the presence of a powerful electrical system.
In addition, it is highly desirable that the room is located on a street with quite lively pedestrian traffic. It is forbidden to place it anywhere on the remote outskirts of the city by the franchisor.
Required Investments and Profitability
It’s not enough to find out and agree to abide by the terms of the Fix Price franchise; you also need to be prepared to invest your own funds in running a business. The initial investment will be from 3 to 6.5 million rubles. This amount includes:
- construction or organization of a store (about 1.5 million rubles);
- purchase and connection of cash computer equipment (from 300 thousand rubles);
- purchase of trade and other equipment (from 700 thousand rubles);
- lump-sum payment (approximately 300 thousand rubles);
- filling the shelves with goods.
You will also need to make monthly contributions to the cashier of the company in the form of royalties in the prescribed amount: either 10% of the net profit of your store, or 3% of the monthly cash turnover. Which option to prefer, you decide. The average payback period depends largely on the correct organization and conduct of the business. On average, it ranges from six months to a year.
What does the franchisee get in the end?
The purchaser of the fix price franchise stores “Fix Price” ultimately gets a really working store that will become popular literally in a matter of days. He also becomes a full-fledged partner of the company and receives high-quality support in all areas of development and conducting his own business. In addition, can count:
- the ability to act under an already hyped name;
- connection to modern computer technologies is free;
- training in the framework of the main programs (the courses are the entire staff of your store);
- an internship in any already promoted company store;
- participation in special promotions from manufacturers of goods;
- receiving promotional materials for free.
The franchisor also guarantees all its partners the ability to connect to a single information system, which allows you to maintain correct reporting, as well as monitor and track stocks of goods.
Franchise Acquisition Methods
To buy a Fix Price Neil franchise, you can go in three proven ways: leave a request on the company’s website, make a phone call or go directly to the office. In the first case, you will have to fill out a special form located on the portal. It is worth noting that it is only necessary to indicate true information here, since the adoption by the franchisor of a decision on the possibility of cooperation is made on its basis. In the latter case, if you live or are in Moscow, you should come to the address: 1st Botkinsky proezd, house 7. What to do next, the company managers will already tell you.
Positive feedback franchisee
Owner reviews of the Fix Price franchise are strictly divided into three categories: positive, neutral, and negative. As for what people like, it’s an opportunity to work under a well-known name and get quite good profit even in a small town. Also, many note the ease of conducting and organizing a business. As they write, the hardest part is to part with a certain amount of revenue and follow company guidelines, which are sometimes ineffective or even deadly. Few decide to extend the franchise after the completion of the three-year contract, but they still exist.
Negative customer reviews
There are slightly more negative reviews about the Fix Price franchise than positive reviews. People don’t like too big down payments, the need to pay various deductions to the company’s cash desk every month, the inability to open a store in large cities (the company occupies their own retail outlets), the inability to establish the necessary mark-up on the cost of goods. They are not enthusiastic about the lack of a motivation system, and yet such a large company should have thought about it.
However, in defense of the franchisor it is worth saying that scolding is always easy and simple. If a person who decided to write a negative review, took the place of the head of the company and tried to create ideal conditions for such a sale, he would understand that this is not easy, and changed his mind. But, alas, not everyone is capable of such a thing. And therefore, perhaps, we will leave the right of choice to everyone.
Finally
As the experience of various entrepreneurs shows in working with the Fix Price franchise, it is one of the best in our country. Favorable conditions for cooperation, a unique marketing offer, a good level of profitability, the presence of successful examples of implementing your own business - all this suggests that if you have money and a desire to start a business, you should definitely buy it.
Inexpensive goods at a fixed price will be purchased by many people with low incomes, and therefore the idea of opening their own outlet Fix Price will remain relevant for many entrepreneurs in our country for a long time to come. So think about purchasing a franchise for your own city. Especially if you want to work under the name of a famous brand and avoid the various risks and difficulties that traditionally await beginners at the very start. Good luck!