Franchising in Belarus: how to compare brand offers

Two franchises may promise the same business format yet offer very different terms. One may include launch support in its initial package, while another provides only instructions; one may suit your chosen premises, while another requires alterations. Before choosing a franchise partner, put the offers into a consistent format. Neither brand recognition nor a low entry cost can replace this comparison.

1. Set the same starting assumptions

Start with a brief outline of your own project, rather than a ranking of brands. Specify the city, your proposed outlet format, the premises available or your requirements for them, your launch timetable and your role in day-to-day operations. List your constraints separately: a maximum investment budget, an inability to relocate, a lack of experience or the need to run the business alongside other commitments.

Divide your requirements into essentials and preferences. For example, being able to operate in a particular city may be essential, while recruitment support may be desirable if you are prepared to hire staff yourself. Do not let an attractively presented offer shift these priorities after every meeting.

Send every prospective franchisor the same project brief. Otherwise, one may cost a compact outlet, another a full-sized shop, and a third may quote a minimum price without reference to the premises. These responses cannot be compared directly.

Ask each brand to confirm exactly which format it proposes for your circumstances. If there is no suitable option, that is a useful finding, not a reason to stretch your resources to fit the presentation. Keep your original brief: it will help you spot any gradual increases in floor space, staffing or compulsory purchases during negotiations.

2. Build a single comparison table

A franchise directory is useful for finding opportunities, but a listing does not mean that all the seller’s claims have been checked. Treat a brand profile as a starting point for requesting documents, not as a ready-made assessment of the offer’s reliability.

Create a table with the same questions in the rows and the brands in the columns. Each cell should record a specific term and the document in which it appears. For an initial comparison, the following categories are sufficient:

• Format: floor space, product range, opening hours and required staffing levels.
• What the offer includes: rights granted, materials, support and the franchisor’s deliverables.
• Your obligations: what you must prepare, purchase and organise yourself.
• Costs: one-off charges, recurring charges and charges triggered by particular events.
• Dependencies: mandatory suppliers, software, contractors and approvals.
• Readiness to proceed: availability of a draft agreement, schedules and a clear process for formalising the arrangement.

For financial entries, record the currency, whether taxes are included, the period covered and any excluded costs. This is not a detailed financial model; it is a way to avoid comparing unlike figures. A ‘launch’ cost that excludes refurbishment cannot be treated as equivalent to a budget that includes preparing the premises.

Do not leave cells blank. Write ‘not provided’, ‘not included’ or ‘requires clarification’. These mean different things: the absence of an answer does not prove that a service is unavailable, but neither does it justify treating it as included. Also record the response date and offer version, particularly if terms change during negotiations.

3. Separate marketing claims from contractual terms

In Belarus, franchising is specifically regulated by the Civil Code, although there is no separate franchising act. Article 910 governs the comprehensive business licence agreement, under which the rights holder grants the user a package of licensed rights in return for payment. Article 910-1 requires the agreement to be in writing and registered with the patent authority, the National Centre of Intellectual Property.

Resolution No. 346 of the Council of Ministers of the Republic of Belarus, dated 21 March 2009, also provides for the registration of amendments to and termination of such agreements. When comparing brands, it is therefore important to assess not just their presentations but also their readiness to formalise the relationship under Belarusian rules. Registration itself does not establish the commercial merits of an offer.

Assign a status to each substantive answer:

• a marketing claim without supporting detail;
• a written response explaining the terms;
• a provision in the draft agreement or a schedule.

This label indicates how clearly the point is documented; it does not guarantee performance. A draft may still change, and a detailed letter does not always become a contractual obligation.

If a brand promises ‘full support’, ask what it will actually do, by when, and which tasks will remain your responsibility. If the response is ‘everything is discussed individually’, request a tailored offer before making your final choice. Do not give vague promises the same weight as specific terms.

4. Choose by applying your constraints, not an overall score

First, eliminate offers that fail to meet your essential requirements. Strong marketing should not compensate for an unavailable format or an unacceptable obligation. Only then compare the remaining options against your preferences.

Do not reduce the decision to a numerical ranking without explanation. Identical scores can conceal different risks: one brand may have a higher entry cost but a clearer package, while another may offer a more attractive price but leave much of the work undefined.

Write a short assessment of each shortlisted brand: why it is suitable, which terms are confirmed, what remains unknown and which answers could change your decision. Send your outstanding questions in writing and set your own timetable for reviewing the documents. A promotional deadline should not replace proper checks.

Practical takeaway: choose a brand only after comparing offers using the same starting assumptions. If a decisive cell in your table still says ‘not provided’, the next step is to seek clarification, not make a payment.