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Franchising is one of the most popular business models in Ukraine that is used by local entrepreneurs and foreign investors. In 2017, the annual gross income of franchises in Ukraine went above $38 million. In this top-10, we chose franchises on the rise in 2018 that can become the reason to invest money in Ukraine.

Vegano Hooligano

More than one-third of franchises in Ukraine are operated in the restaurant sector, giving the hint at in which sectors it’s best to invest in Ukraine. Vegano Hooligano follows the trend of ecological and conscious consuming — the social and planet-friendly food chain takes pride in a variety of vegetarian and vegan dishes sold for a decent price. There are four options of buying the franchise: street food, restau-café, restaurant and a culinary fabric. The franchise contract and price includes project design, brand book, consulting during launch, personal training, finance model, marketing support etc.

Initial investment: starting at $20 000 
Franchise fee: starting at $7 000 
Royalty: 5% per month 
Payback period: up to 30 months

Lviv Croissants

Lviv Croissants is another example of a leading Ukrainian franchise in the restaurant sector. The franchise was founded in 2015 in Lviv and soon the bakeries spread all over the country, introducing the concept of the “new Lviv fast food”. In 2016, Lviv croissants won the international “Franchise of the Year” award in the nomination “Discovery of the Year”.

At the moment, there are 60 working cafes on the territory of Ukraine. Lviv Croissants provides support for the franchisee for the period of the contract, including building a financial model, providing contacts of caterers, logistics and trademark.

Initial investment: starting from $25 000 
Franchise fee: $9000 
Royalty: 3% per month
Payback period: 12-24 months

Euro Study & Work

Another popular sector for franchising in Ukraine is providing services. One of the most popular niches in the sector by far is education and employment. Euro Study & Work is one of the three franchises that belong to the Euro Ukrainian Group. The concept of the business is uniting three offices in one: employment and education agency, travel agency and insurance agency with own sites for each.

According to Euro Ukrainian Group, this system ensures higher gross income compared to the narrow-profile companies. The company offers two options of franchising: an open space office in selected premises or a department in Privat Bank branches. The latter is explained by the high number of branches in the country and high client attendance, which raises the chances of being noticed.

Initial investment: starting from $1000
Franchise fee: $2500 
Royalty: $50-100 per month
Payback period: starting from 2-3 months

Vynakhidnyk Studio

One of the answers to the question of how to invest money in Ukraine is quite simple — invest in the future. In the case of Vynakhidnyk Studio, future is embodied in kids, who upgrade and polish their skills in the franchise’s development studios. The key principle is hands-on learning developed by LEGO Education. In 2012, Vynakhidnyk Studio won the title of the Best Franchise Catering Services for Kids.

At the moment, there are 15 studios that teach more than 6000 kids in different cities in Ukraine including Kyiv, Lviv, Dnipro, Kharkiv and others. Note that the franchise allows to start a business in the cities in Ukraine where studios haven’t appeared yet.

Initial investment: starting at UAH 2 500 000 
Franchise fee: depends on the location 
Royalty: starting at UAH 15 000 
Payback period: 24-36 months

Grill Pub

Grill Pub is a franchise that was founded to create a new format of business on the Ukrainian market. The franchise fits the following criteria: high profitability, a small investment in opening a business, high raw product quality and high cooking speed. The meat and other ingredients used in the chain of Grill Pub are carefully selected and cooked on the special grill. The franchise works in two formats: a restaurant-type Grill Pub and a spot on the food court. The franchise price covers trademark, project design, kitchen equipment, menu, personal training etc.

Initial investment: starting from UAH 540 000 
Franchise fee: none 
Royalty: 2% per month 
Payback period: starting at 6 months

Chashka Espresso Bar

Coffee is one of the promising niches to invest money in Ukraine in 2018. The coffee sector in Ukraine has been growing since 2014, providing a stable income for the small and medium-sized business. Chashka Espresso Bar was founded in 2011 and currently has 4 coffee shops and a partner establishment in Cherkasy. The franchise is an example of a brand with a clear business system in Ukraine that sells not only high-quality coffee but also amicable atmosphere. The franchising contract includes project design, brand book, consulting during launch, personal training, finance model, marketing support etc.

Initial investment: starting at $20 000 
Franchise fee: starting at $7 000 
Royalty: 4% per month
Payback period: 18-38 months

UNMOMENTO

UNMOMENTO was founded in 1996, making it one of the oldest franchises in Ukraine. The company provides the following services: cleaning of clothes, shoes and accessories, washing and ironing bed linen and textiles, minor repair of clothes and shoes as well as professional cleaning. Besides, UNMOMENTO is a leading supplier of equipment for cleaning and laundry companies. The company boasts more than 20 years of experience on the Ukrainian market, an extensive network of more than 1 million clients and 53 establishments all over the country.

Initial investment: starting at 40 000€ 
Franchise fee: starting at 8 000€ 
Royalty: 1000€ per month (starting from the second year)
Payback period: starting at 35 months

G. Bar

G. Bar is an international franchise that can be found not only in Ukraine but also in Europe. At G. Bar, girls and women can enjoy beauty services like manicure and pedicure with a glass of sparkling wine or a cup of coffee in an amicable atmosphere. Besides, G. Bar offers services of makeup, brow and hairstyling as well as numerous dyeing options. The franchising contract includes project design, brand book, consulting during launch, personal training, finance model, marketing support etc.

Initial investment: starting at $50 000
Franchise fee: depends on the location 
Royalty: 5% per month 
Payback period: 8-20 months

Good Beer

Beer and alcohol, on the whole, is another reason to invest in Ukraine — the drink is as much popular as in Europe, proved by numerous high-profit venues and craft breweries that emerge each year. Good Bear is a Ukrainian franchise that specializes in draft beer stores.

The company works with the largest breweries in the country: Carlsberg Ukraine, Obolon’, The First Private Brewery and others. There are more than 160 types of beer available in total. Good Beer offers free consulting, equipment, regular cleaning service for the shop equipment and repair warrant.

Initial investment: depends on location 
Franchise fee: none 
Royalty: 2% per month 
Payback period: 2-3 months per season

Dima Borisov Restaurant Family

The final franchise on our top-10 list is one of the most successful current projects in Ukraine – Dima Borisov Restaurant Family. The fine dining spots like Bilyi Nalyv, The Last Barricade and Dogz&Burgerz attract customers thanks to the balance between the affordable price and high product quality.

Dima Borisov Family offers five types of franchising: seafood bar Crab’s Burger, oyster-and-caviar Bar Mushlya, kid's cafe BabyRock, meat bar Churrasco Bar, and Chicken Kyiv. The franchising contract includes project design, brand book, consulting during launch, personal training, finance model, marketing support etc.

Initial investment: starting at $100 000 
Franchise fee: starting at $50 000 
Royalty: 5% per month 
Payback period: 24 months

The 10 franchises are merely one of the successful examples on how to invest money in Ukraine.

The following list is the editor’s choice. The businesses are listed in random order.

Photo sources: unsplash.com, Facebook pages and websites of businesses mentioned above. All images belong to their rightful authors.

Author: Kate Pryliuk. Born and raised in Kyiv. Avid traveler, love exploring new places and getting familiar with delicious world cuisine. Expert in hidden places of the capital's downtown.

 

Source：

https://destinations.com.ua/business/money/471-top-10-franchises-for-small-businesses-in-ukraine-2018