Aug 31, 2024
We came into profit just on lump sums.
How Zdraste earned more at the franchise exhibition than it had spent on participation.
Participation in a franchise exhibition is not only a significant event and a tick in the track record for any brand. For young franchisors, this is, first of all, an opportunity to show themselves and indicate their presence in the market, for experienced ones - to confirm their status and demonstrate competitiveness; but, most importantly, for both of them, this is a unique opportunity to attract new partners, make money at new points and increase the profits of existing ones.
In order for this opportunity to be fully realized, it is not enough to simply buy and build a stand. This shows the many years of experience of hundreds of exhibitors at Buybrand and Versous. We have repeatedly written about how to make the most effective use of your stand and time at the exhibition, now, on the eve of the main event in the field of franchising Buybrand Expo 2024, for clarity we present a case - with mathematics and detailed instructions for franchisors who want not just to “participate” ", but you can really make money at the franchise exhibition.
The chain of coffee shops with signature cuisine “Zdraste” signed 7 agreements with franchisees following the results of the VerSous 2024 exhibition. Thus, the franchisor recouped the costs of participation only through lump-sum fees (some of which were not charged in full, but with a significant discount). “We even gained 2.6 million rubles,” said Elena Shishova, director of franchising for the network. In this case, the contract with the franchisee is concluded for 5 years and during this entire period the franchisor will earn at least royalties and marketing fees from each outlet.
We tell you what the franchisor did for this.
Reference
The coffee shop market has been and remains one of the most highly competitive both in the catering segment and in franchising in general. The Zdaste coffee chain is a relatively young player. She presented her franchise at the Versous exhibition in March 2024. At that time, 87 establishments were operating under her delusion, 8 of them were their own. The number of partners was 66.
Today, Zdaste operates or is at the launch stage of more than 100 coffee shops in Moscow and Moscow Region, as well as in St. Petersburg, Tyumen and Samara.
Participation in the exhibition
Before Versous, the Zdaste franchise was presented in major online catalogues, but had never been presented at exhibition venues or participated in international events. “We were “kids,” states Elena Shishova. “And finally we realized that it was time to declare ourselves as a product that really works.”
When deciding to participate in the franchise exhibition, the franchisor pursued three main goals: to increase brand awareness, attract new partners and enter the regions.
The costs of participation (together with the construction of the stand and remuneration of personnel) amounted to 4 million 583 thousand rubles. Over the three days of the exhibition, the franchisor received 54 applications for the purchase of a franchise, the number of contracts concluded was 7. The amount of lump-sum contributions that the company received under these contracts amounted to 7 million 225 thousand rubles.
Five contracts were signed in the first two months since the exhibition!
THREE STEPS TO A SUCCESSFUL TRANSACTION
1. Stand
Proper organization of the stand space and maximum use of all available surfaces for self-promotion are two main tasks that must be completed so that the money spent on renting and developing the exhibition space is not wasted.
At Versous, the “Zdraste” stand was divided into two zones - a demonstration area (it was also an area for direct sales of coffee and desserts) and a meeting room. Thus, visitors to the exhibition, even if they did not intend to purchase a franchise on the spot, could buy a drink, have a snack, get acquainted with the brand, the concept and remember that very taste, which could then lead them to a decision on partnership.
At the same time, potential franchisees could calmly sit down at the negotiating table - right next to the sales counter, but at the same time, without being distracted or interfering with the line for coffee.
IMPORTANT! Convenience of organizing the stand space for visitors is an extremely important factor. Illiterate decisions and annoying little things, like a “podium” that visitors will trip over, can significantly reduce the number of leads and scare the audience away from the brand as a whole.
What did you save on?
The equipment for the Zdraste stand was provided free of charge by the company’s contractors - simply for the fact that their logos were placed on the stand. This is also a life hack for franchisors: since potential franchisees who come to franchise exhibitions are also a potential audience for b2b companies, these same companies are most interested in being featured at the event. If you are a franchisor. If you give them this opportunity, they may well agree to barter in the form of providing equipment or furniture for the stand.
2. Team
It is extremely important that one of the top managers of the franchisor company is present at the stand. Not all three days of every day of the exhibition, but at least on the first or second day, when the flow of visitors is the most active. This will show the seriousness, responsibility and interest of the franchisor towards potential partners. And also, of course, will cause additional confidence on the part of both experienced and novice entrepreneurs.
“All the ‘generals’ and ‘gods’ were always present at our stand,” said Elena Shishova. “And, of course, a franchise sales manager.”
The biggest mistake is to put line personnel at the stand who will not be able to talk about the nuances of the enterprise’s work and are not “passionate” about the concept itself. If there is a person at your stand who only hands out business cards and sends them to the franchise website, it will most likely be a failure.
IMPORTANT! Ideally, if there will be a person present at the stand who has worked at a point in your network or an existing franchisee - it’s hard to come up with better “advertising” than a partner who can share his experience of working as a franchisee.
3. Marketing activities
“What have we done? Before the start of the exhibition, we sent an invitation to all interested partners to visit the exhibition. Without fear that they might choose another franchise. They haven’t chosen us yet, they’re just interested. And people came, despite the fact that they had a tremendous opportunity to choose another franchisor.”
The company installed a banner at the entrance to the exhibition. According to Shishova, he was “like a poplar on Plyushchikha, nevertheless, he played a colossal role”
During the exhibition, Zdarste held a drawing among visitors for a discount on the lump sum fee - and this discount was received by their future partner at that time and current partner.
IMPORTANT! To organize the drawing, the franchisor only had to install a “drum” at his stand. The costs were minimal, but the effect exceeded expectations - an object such as the “fartuna wheel” not only attracted an additional number of visitors and made the brand even more memorable, but also brought in new partners.
“This is a very good life hack,” emphasizes Shishova, “to invite potential partners to the exhibition. It’s not a fact that they would have come to us like that. And the exhibition helped us get an agreement.”
RESULT
The Zdraste company has grown from a young franchising project into a very ambitious and rapidly developing network in less than a year. In November 2024, she will again take part in the exhibition. The franchise will be showcased among other foodservice concepts at Buybrand Expo 2024.
Coffee chains Coffeeshop Company, Cofix and One Price Cofee, restaurants Mama Roma and Gagawa, Vietnamese cafes Pho Bo, street food chains Stardogs and SSV, as well as the largest players in the catering market Rosinter and Novikov Group, etc. will also show their concepts there.
In order for this opportunity to be fully realized, it is not enough to simply buy and build a stand. This shows the many years of experience of hundreds of exhibitors at Buybrand and Versous. We have repeatedly written about how to make the most effective use of your stand and time at the exhibition, now, on the eve of the main event in the field of franchising Buybrand Expo 2024, for clarity we present a case - with mathematics and detailed instructions for franchisors who want not just to “participate” ", but you can really make money at the franchise exhibition.
The chain of coffee shops with signature cuisine “Zdraste” signed 7 agreements with franchisees following the results of the VerSous 2024 exhibition. Thus, the franchisor recouped the costs of participation only through lump-sum fees (some of which were not charged in full, but with a significant discount). “We even gained 2.6 million rubles,” said Elena Shishova, director of franchising for the network. In this case, the contract with the franchisee is concluded for 5 years and during this entire period the franchisor will earn at least royalties and marketing fees from each outlet.
We tell you what the franchisor did for this.
Reference
The coffee shop market has been and remains one of the most highly competitive both in the catering segment and in franchising in general. The Zdaste coffee chain is a relatively young player. She presented her franchise at the Versous exhibition in March 2024. At that time, 87 establishments were operating under her delusion, 8 of them were their own. The number of partners was 66.
Today, Zdaste operates or is at the launch stage of more than 100 coffee shops in Moscow and Moscow Region, as well as in St. Petersburg, Tyumen and Samara.
Participation in the exhibition
Before Versous, the Zdaste franchise was presented in major online catalogues, but had never been presented at exhibition venues or participated in international events. “We were “kids,” states Elena Shishova. “And finally we realized that it was time to declare ourselves as a product that really works.”
When deciding to participate in the franchise exhibition, the franchisor pursued three main goals: to increase brand awareness, attract new partners and enter the regions.
The costs of participation (together with the construction of the stand and remuneration of personnel) amounted to 4 million 583 thousand rubles. Over the three days of the exhibition, the franchisor received 54 applications for the purchase of a franchise, the number of contracts concluded was 7. The amount of lump-sum contributions that the company received under these contracts amounted to 7 million 225 thousand rubles.
Five contracts were signed in the first two months since the exhibition!
THREE STEPS TO A SUCCESSFUL TRANSACTION
1. Stand
Proper organization of the stand space and maximum use of all available surfaces for self-promotion are two main tasks that must be completed so that the money spent on renting and developing the exhibition space is not wasted.
At Versous, the “Zdraste” stand was divided into two zones - a demonstration area (it was also an area for direct sales of coffee and desserts) and a meeting room. Thus, visitors to the exhibition, even if they did not intend to purchase a franchise on the spot, could buy a drink, have a snack, get acquainted with the brand, the concept and remember that very taste, which could then lead them to a decision on partnership.
At the same time, potential franchisees could calmly sit down at the negotiating table - right next to the sales counter, but at the same time, without being distracted or interfering with the line for coffee.
IMPORTANT! Convenience of organizing the stand space for visitors is an extremely important factor. Illiterate decisions and annoying little things, like a “podium” that visitors will trip over, can significantly reduce the number of leads and scare the audience away from the brand as a whole.
What did you save on?
The equipment for the Zdraste stand was provided free of charge by the company’s contractors - simply for the fact that their logos were placed on the stand. This is also a life hack for franchisors: since potential franchisees who come to franchise exhibitions are also a potential audience for b2b companies, these same companies are most interested in being featured at the event. If you are a franchisor. If you give them this opportunity, they may well agree to barter in the form of providing equipment or furniture for the stand.
2. Team
It is extremely important that one of the top managers of the franchisor company is present at the stand. Not all three days of every day of the exhibition, but at least on the first or second day, when the flow of visitors is the most active. This will show the seriousness, responsibility and interest of the franchisor towards potential partners. And also, of course, will cause additional confidence on the part of both experienced and novice entrepreneurs.
“All the ‘generals’ and ‘gods’ were always present at our stand,” said Elena Shishova. “And, of course, a franchise sales manager.”
The biggest mistake is to put line personnel at the stand who will not be able to talk about the nuances of the enterprise’s work and are not “passionate” about the concept itself. If there is a person at your stand who only hands out business cards and sends them to the franchise website, it will most likely be a failure.
IMPORTANT! Ideally, if there will be a person present at the stand who has worked at a point in your network or an existing franchisee - it’s hard to come up with better “advertising” than a partner who can share his experience of working as a franchisee.
3. Marketing activities
“What have we done? Before the start of the exhibition, we sent an invitation to all interested partners to visit the exhibition. Without fear that they might choose another franchise. They haven’t chosen us yet, they’re just interested. And people came, despite the fact that they had a tremendous opportunity to choose another franchisor.”
The company installed a banner at the entrance to the exhibition. According to Shishova, he was “like a poplar on Plyushchikha, nevertheless, he played a colossal role”
During the exhibition, Zdarste held a drawing among visitors for a discount on the lump sum fee - and this discount was received by their future partner at that time and current partner.
IMPORTANT! To organize the drawing, the franchisor only had to install a “drum” at his stand. The costs were minimal, but the effect exceeded expectations - an object such as the “fartuna wheel” not only attracted an additional number of visitors and made the brand even more memorable, but also brought in new partners.
“This is a very good life hack,” emphasizes Shishova, “to invite potential partners to the exhibition. It’s not a fact that they would have come to us like that. And the exhibition helped us get an agreement.”
RESULT
The Zdraste company has grown from a young franchising project into a very ambitious and rapidly developing network in less than a year. In November 2024, she will again take part in the exhibition. The franchise will be showcased among other foodservice concepts at Buybrand Expo 2024.
Coffee chains Coffeeshop Company, Cofix and One Price Cofee, restaurants Mama Roma and Gagawa, Vietnamese cafes Pho Bo, street food chains Stardogs and SSV, as well as the largest players in the catering market Rosinter and Novikov Group, etc. will also show their concepts there.
