A franchise is not a logo or a presentation for investors, but a way of working that can be repeated at someone else's location without you. Packaging starts not with a contract, but with a question: can what works for you be repeated at all? Here are seven steps — from a working location to the first franchise one — based on the experience of the SneakNFresh network, which grew by franchise to 70+ locations in 6 countries.
is the business ready for a franchise
Three honest questions before any spending on packaging:
- Does the location earn steadily? A franchise partner buys not an idea, but a working model. If the location rests on the owner's enthusiasm and seasonal luck, there is nothing to package yet.
- Does the work repeat without you? If you are on vacation for two weeks and the location works the same — that is a good sign. If everything stops without you — you first need a system inside your own location.
- Do you know your numbers? Revenue, cash, pay, supplies, what is left for the location in a month. Not “roughly”, but for every month. Without the numbers you can neither work out terms for a franchise partner nor answer their first question, “how much will I earn”.
If the answer to even one question is “no” — start with steps 1–3. They are useful even without a franchise.
step 1. describe how a location works
Write down the client's path and the money's path as if explaining to a newcomer who has never been to the location:
- how a client finds out about you and gets in touch;
- how an order is taken, what is recorded, what terms are promised to the client;
- how the work is divided among employees and who is responsible for what;
- how the client learns that the order is ready, and how they pick it up;
- how money is accepted and what happens to it at the end of the day;
- how pay is calculated;
- where supplies come from and what to do when they run out;
- how a new employee is trained.
Usually at this step it turns out that half the answers are “it varies” or “ask Marina”. That is normal. That is exactly the list of what needs to be aligned.
step 2. digitize the processes
A description in a document goes out of date the day it is finished. A system doesn't: in it the process is not described, but built in.
What moves into the systems:
- clients and orders — every order with items, performers, payment and statuses; a client base with history; a loyalty club; conversations from all messengers in one place. In knopka — the CRM;
- money and people — revenue and cash by day, location profit for the month, pay by rates, shifts, supplies inventory, royalties. In knopka — the ERP, which receives its data from the CRM;
- training — courses, quizzes, certification, certificates, a knowledge base. In knopka — the LMS;
- access — every employee has one account for all products and a role at their location. In knopka — ID.
Why this matters specifically for a franchise: the franchise partner gets not a folder of regulations, but a working system in which “right” is the default path. And you see what is happening at their location without calling them every evening.
step 3. calculate the location's economics
After digitization you have not estimates, but figures for every month: how much came in, how much went to pay and supplies, what was left for the location. The terms of the franchise are calculated from this:
- how much it costs to open such a location;
- how much it brings in and at what client flow it breaks even;
- what lump-sum fee (a one-time payment for joining the network) and what royalties (a regular payment) the location's economics can bear so that the franchise partner still has something to work for.
Royalties at which the franchise partner works at a loss kill a network faster than having no franchise. Calculate them from real economics, not from what others charge.
An important caveat: a franchise partner's income depends on the place, the market and how they work. It can't be promised in figures — you can only show the economics of your own locations.
step 4. put together standards and training
A standard that isn't in the training doesn't exist. By the third month the franchise partner will have new employees you have never seen. They learn not from you, but from the system.
What is needed:
- courses by role — front-desk administrator, technician, location manager: each has their own;
- quizzes and certification — confirmation that a person knows the standard, and didn't just open a course;
- certificates — with QR verification, so that the head office and the franchise partner themselves can see who is cleared to work;
- a knowledge base — answers to the questions that come up during a shift;
- a manager dashboard — the franchise partner sees their team's progress.
In knopka this is the LMS. How to check that knowledge is still there after a month is in the article training people don't forget.
step 5. secure the rights
This is a general guide, not legal advice — do this part with a lawyer.
In Russia, franchising is formalized by a commercial concession agreement (Chapter 54 of the Civil Code). Under it, the rights holder grants the user the right to use a set of exclusive rights — first of all, a trademark. The granting of the right under such an agreement is subject to state registration with Rospatent. So before the first franchise:
- the trademark must be registered to the rights holder;
- the agreement must describe what exactly is transferred, in which territory, on what terms, and what the remuneration is (lump-sum fee, royalties);
- if you are entering other countries — they have their own rules, and these must be checked separately.
step 6. test the packaging at the first franchise partner's location
The first franchise location is a test of the packaging, not a sale. It shows:
- whether a new person copes with your standards and training;
- whether the location's economics match what you calculated;
- where the franchise partner calls you most often — those are the places the packaging hasn't covered.
It is better to open the first location with someone you are ready to go through mistakes with honestly — and only after that go to the market.
step 7. prepare the network infrastructure
When there are many locations, manual management breaks down. What must be in place before franchise sales begin:
- roles by location — the franchise partner sees their location, the head office sees the network, an employee sees their own work;
- a shared directory of locations — cities, time zones, currencies, if the network goes beyond one country;
- royalties on each location's terms — different franchise partners can have different terms, and calculating them by hand in a spreadsheet is a source of disputes;
- analytics by location and by network — average check, client flow, money, with trends;
- one training program for everyone with progress for each location.
On the SneakNFresh network this runs on knopka: 70+ locations in 6 countries (Russia, Belarus, Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan), with 3 more countries and 10+ locations being connected. Across the network — 712,321 orders since 2021, 175,834 clients and 7,000+ orders per month (across the SneakNFresh network, including locations that keep records outside the CRM).
common mistakes
- Packaging before your own location is stable. A franchise scales both the strengths and the weaknesses.
- Selling a franchise as a “turnkey business with no involvement”. A franchise partner who believes this will become your main problem in six months.
- Keeping standards in documents, not in training and systems. A document won't be read; a system is harder to get around.
- Calculating royalties “like everyone else”. You have your own location economics.
- Not seeing what is happening at the franchise partner's. Without a shared CRM and ERP you learn about a location's problems when it is closing.
- Forgetting about rights. Without a registered trademark and registration of the agreement with Rospatent, a franchise is legally vulnerable.
Looking for a SneakNFresh franchise? It is on the network's website fr.sneaknfresh.ru.
frequently asked questions
where to start if the business works at a single location?
With describing and digitizing the processes: clients and orders, money, pay, training. This is useful for your own location, and without it a franchise can't be repeated.
how long does franchise packaging take?
It depends on how far the business is already described and digitized. An honest estimate is possible only after reviewing the specific business.
is it mandatory to register a trademark?
For a commercial concession agreement in Russia — yes: the right to use a trademark is transferred under the agreement, and the granting of the right is registered with Rospatent. Details — with a lawyer.
how to determine the size of the royalties?
From the location's real economics: how much the location brings in and how much should be left for the franchise partner so that they have something to work for.
will you help package my business?
Yes — we'll digitize the business in the CRM, ERP and LMS and help package it as a franchise, based on SneakNFresh's experience. We make no promises about timelines or income: we start with a conversation about your business. More on the page packaging a business as a franchise.
