Franchise – Expand Your Business Horizon - Franchise – Expand Your Business Horizon - Franchise – Expand Your Business Horizon - Franchise – Expand Your Business Horizon - Franchise – Expand Your Business Horizon
Franchising as a business model has existed for centuries, but its modern concept began to take shape in the 19th century in the United States. One of the first companies to adopt the franchise model was Singer Sewing Machine Company, which started expanding its after-sales services through franchise agreements. Since then, this business model has spread across various industries, from fast food to hospitality and service provision.
The largest franchise in the world is 7-Eleven, with over eighty thousand stores worldwide, and of course, IKEA, where not only the company’s visuals and products are branded, but also elements like the well-known meatballs, which create a homely atmosphere.
However, the most sought-after franchise provider in the world is Chick-fil-A, which receives an average of over forty thousand applications per year.
They carefully select their franchisees, participate in the choice of locations, and manage everything from the equipment used in the restaurants to accounting and many other details.
This finely tuned business model has, over the years, built a reputation for success in the U.S. market. They don’t just sell food; they sell a successful business model. Their entire system is well thought-out, and they are, professionally, one of the most successful users of the franchise model in the world.
Creating and developing a franchise requires careful preparation and planning. It is crucial to thoroughly analyse the brand and ensure that the business concept and potential are strong, profitable, and scalable. Additionally, the company must have a solid and recognisable brand capable of delivering consistent quality and service across all key areas of the franchise.
Visual identity plays a central role in building a franchise. Well-thought-out and professional branding helps ensure that the overall package can offer a cohesive and consistent experience to customers alongside the business concept. Moreover, a structured and carefully planned identity aids in protecting the brand, both for the franchisor and against potential imitators. A complete visual identity solution includes not only the logo, colour palette, typography, marketing materials, and internal communications, but also aspects such as interior design, technological features, the use of equipment, and much more. Naturally, creating a franchise also involves defining your brand and adapting it to suit different markets.
Depending on the desired franchise, it can offer the franchisee an opportunity to start with a relatively small investment in an established brand and business model that has already proven its success. On the other hand, there are larger and more sought-after franchises that require a substantial financial commitment. From the franchisor’s perspective, franchising is also a relatively low investment for rapidly and effectively scaling the business model, allowing the company to reach new markets and customers more quickly.
Many successful companies have started modestly but have grown into international powerhouse brands through franchising.
Peetri Pizza started in 1990 as a small local business, but thanks to a well-thought-out franchise model and strong branding, they have expanded their chain to over 55 pizzerias across Estonia, selling more than two million pizzas annually in the domestic market. Peetri Pizza has also begun expanding beyond Estonia, opening its first pizzerias in Riga through franchise agreements.
Beautiful Me has now opened around ten roll massage salons across Estonia, and their franchises operate in Finland, Sweden, Portugal, Dubai, and Australia.
Pavlova Cafe is still relatively small in terms of the number of cafes, currently with two in Estonia and one in the United Arab Emirates. As franchises, they have a cafe in Vilnius, Lithuania, and recently opened one in Berlin on the famous Kurfürstendamm shopping street.
Pizza Kiosk focuses on smaller towns in Estonia, delivering pizza to homes outside the big cities.
Coffee IN has also found its niche, offering a quick coffee experience. They have 15 cafes across Estonia, with the mission of providing busy people a moment to enjoy a quality coffee drink.
Flamm is a German-style restaurant catering to a specific taste niche, featuring a carefully selected wine and drinks menu. Flamm is more of a lifestyle than just a place to eat.
Be More is one of Estonia’s producers of so-called superfoods, with their product range found in almost every local grocery store. Their goal is to find like-minded people outside of Estonia who share their philosophy and enthusiastically carry it forward. Currently, they manage the Estonian and Finnish markets, the latter through franchising.
Poke Bowl offers a bowl of delicious Hawaiian-style food. With its simple approach and well-thought-out solutions, this restaurant chain has won the hearts of many Estonians. Today, they have eight restaurants and are quietly eyeing international markets through franchising.
Starfish Academy provides financial literacy-based training and courses, having developed their business model in such a way that it can be expanded along with its content to foreign markets.
Juuksik is a fun hair salon specifically designed for children and families. With its enjoyable concept and experience-rich service, the salon is now offering its model to others.
In contrast to the previous examples, Exponaut is a software company whose product is an event management application that simplifies event organisation, management, validation, and many other processes.
Impact Day is the largest sustainability festival in the Nordics and Baltics, and by franchising their model, they can now reach other markets, sharing the core principles of sustainability, the circular economy, and even the green transition more broadly.
Geolift is a construction company that has developed a geopolymer-based solution for lifting various floors, uneven surfaces, or similar issues. Their goal is to expand the reach of their technology while maintaining their brand, which led them to franchising instead of finding distributors.
In addition, we can find several franchises that may appear to be domestic, but whose owner or franchisor is a global foreign company. Major examples include Burger King, Re-Max, KFC and Vapiano.
The largest franchise holding company in the Nordics, Reitan, which the average consumer may not have heard of, has a portfolio that includes well-known brands in our market, such as R-Kiosk and Caffeine. All of these brands are heavily branded, from the smallest details like takeaway boxes, drink straws, and uniforms, to larger segments and market-specific solutions such as loyalty programmes, marketing campaigns, and much more.
Our collaboration with Francorp Baltic ensures a complete solution for your company. Francorp Baltic manages the entire franchising process, from preliminary work and drafting contracts to creating operational manuals. Meanwhile, we focus on developing the franchisor’s brand visual identity, ensuring that all requirements are met and that everything created adheres to consistent visual standards, providing a seamless customer experience. A professional and unified visual identity is key to the successful operation of a franchise, helping to build trust and brand recognition.
Related articles: Eesti Disainikeskus – R-kiosk becomes a franchise, R-Kiosk – Hakkan ettevõtjaks, Chick-fil-A – Franchising, 7-Eleven – Franchising, IKEA – The IKEA Franchising System, Re-Max Franchise, Vapiano Franchise, Peetri Pizza – Franchise, Beautiful Me – Frantsiis, Pavlova Cafe Franchise, Pizza Kiosk – Franchise, Coffee IN – Franchise, Flamm Franchise, Be More Frantsiis, Poke Bowl frantsiis
