Franchising: Pilot Projects and Training Initiative in Russia

Under a USAID Program IDG introduced franchising as a business development strategy for Russian investors and entrepreneurs, financial institutions, and the government. These pilots introduced franchising and other licensed distribution strategies to Russia to create a  large number of small-scale, start-up enterprises that mobilize primarily Russian capital and can expand in the absence of large-scale foreign investment. The program trained Russian investors and entrepreneurs, financial institutions and government representatives. IDG estimates that the number of franchised businesses in Russia grew from 70 in 1994 to over 600 in 1997, representing nearly 200 percent annual growth. The IDG Team also organized workshops and seminars in 10 cities throughout Russia.