How to start a franchise business in Russia
Franchising in Russia is an important driver of regional economic development. Franchisees are granted access to a wide consumer base and can leverage a proven business model with predictable financial results. This article outlines the steps for launching a franchise business in Russia.
Why securing a franchise in Russia is attractive for Indian businesses
Over the past four years, the number of companies with Indian founders in Russia has more than tripled, rising from 312 to 1,030. Indian-owned companies now account for 1.6% of all foreign businesses in the country.
In May 2025, the Indian Small Business & Franchise Association (ISFA) and the Russian Franchise Federation signed a memorandum of understanding to collaborate on promoting franchising opportunities. The partnership includes measures that reduce legal barriers to launching and operating franchise businesses in both countries.
Russia’s franchise market is among the largest in Europe. The country has developed infrastructure to support growth, including specialised consultants, trade shows, industry associations and online platforms for selecting franchises.
Number of franchises in Russia
Source: franshiza.ru
Financial performance of Russian franchises in 2024
Source: franshiza.ru
Founder of communications agency Modifiers, Anton Utehin, explained that to expand their networks, many Russian franchisors engage with their partner communities through informal meetings, business clubs and support programmes. "Entrepreneurs value being part of a strong network, with direct interaction with the management team," he noted.
What franchises operate in Russia and what initial investment is required
Franchising is prevalent in the food service and retail sectors. In low-cost market segments, the most common franchise formats are order collection points, service companies, educational projects and small retail outlets. However, the market is much broader, with franchises in services, education, fitness, medical services and personal care demonstrating the most rapid growth.
Russian franchise market structure, 2025
Note: The total exceeds 100% because many franchises operate across multiple segments simultaneously.
Source: Russian National Academy of Business and Entrepreneurship
Initial investments start in the hundreds of thousands of roubles, equivalent to roughly INR 200,000–300,000. More capital-intensive formats require several million roubles initial investment, which is equal to INR 2–3 million or more, depending on the concept and region.
Growth in new franchise outlets today is driven by cities outside Moscow and Saint Petersburg, where demand for chain formats in retail, services and HoReCa remains strong.
"Many franchising networks in Russia are focused on regional expansion. For example, one network currently operates over 1,100 coffee shops in more than 130 cities and develops its model through local partners. In the network’s regional strategy, the profile of the franchisee is the crucial consideration. Experienced entrepreneurs who already know how to manage a business and help the network scale faster are sought out. This approach allows a single outlet to grow into a regional network," noted Utehin.
Franchise costs in Russia, 2026
Source: TopFranchise
Indian businesses can rely on Sber’s banking solutions to support their operations in the Russian market:
Niches that may be attractive to Indian businesses
Food service and fast food franchises
Advantages for Indian entrepreneurs include:
Beauty and personal services franchises
This is the largest franchise segment in Russia, including:
These projects often require smaller investments and scale more easily through regional networks.
Understanding customer payment habits is essential when launching a business in Russia. See which payment methods Russian consumers prefer.
Education and children’s projects
This segment is promising for incoming partners thanks to:
Fitness, health and wellness franchises
Promising areas include:
E-commerce and delivery service franchises
Indian companies are increasingly entering the Russian market via e-commerce and online platforms, creating opportunities in order collection points, logistics services and last-mile delivery services.
Options for Russian market entry
Before choosing a franchise, it is important to determine the right format, assess the payback period and consider how best to manage a local team:
"Franchisors are increasingly opting to build a network in parallel to the company, rather than just opening a single outlet. In practice, this means supporting multi-franchisees, providing management training and assistance with scaling. Entrepreneurs view franchises not only as a start-up tool but as a platform for growth," says Anton Utehin.
Useful resources
These materials help to better understand the Russian market and explore available franchise opportunities:
Franchise directories: franshiza.ru, topfranchise.ru, Forbes Франшизы
How to choose a franchise in Russia
Foreign investors should start by selecting a franchisor and assessing the business model:
It is important to compare the required investments with regional costs for rent, staff and equipment, using market benchmarks.
Do not overlook performing or ignore legal due diligence.