IDPs scale Ukrainian businesses around the world

Walking around Warsaw, you can visit Lviv Croissants or Drunken Cherry, then send a parcel by Nova Poshta to Ukraine or to different European cities, or get your nails done at Pied-de-Poule. And this is just one European city where many businesses originating from Ukraine have congregated.

This type of business model is called a franchise, and there are many examples of such companies around the world. There are numerous companies on the market that sell franchises for many businesses in different countries. Sometimes entrepreneurs do not turn to them but sell franchises on their own, depending on demand, brand popularity, and their own resources and knowledge. According to Franchise Group statistics, at the beginning of 2022, there were approximately 590 franchisor companies in Ukraine. During the war, 43% continued to develop in this direction.

The target audience of Ukrainian franchises abroad is mostly IDPs, but also people from Ukraine who have long lived in another country and want to start their own business or invest in a business.

Ukrainian businesses are not yet well integrated into Europe, but large and medium-sized companies are trying to expand abroad: Nova Poshta, monobank, Liki24, Uklon, Aroma Kava, and many others. There are no statistics on how many of them have already successfully integrated, but these are dozens of companies around the world – in Poland, Germany, Spain, Italy, the Czech Republic, and even the United States. As a rule, these are beauty salons with a high level of service, cosmetics brands, restaurants, bars, coffee shops, fashion brands, retail, postal services, and transportation.

Large businesses enter new markets mainly with their own or loan money. Your company must have expertise, uniqueness, and a business model to be bought abroad. A high-quality franchise is expensive – more than $10,000 just for "packaging" with a mediocre company in the market. Besides, it is a separate team that oversees sales, support, training, and control. And to promote the franchise, you also need a separate permanent marketing budget.

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