Ranking of the best tobacco store franchises for 2022

The tobacco business is a profitable business, because even according to statistics, Russia is one of the most smoking countries. This is a plus for the entrepreneur. Of the minuses - severe legislative restrictions and strict state control over the circulation of tobacco products.

For example, tobacco sales points should be located at a distance of at least 100 m from educational, sports, and medical services. Cigarettes, and the same vapes, which are also equated with nicotine-containing products, cannot be sold on the territory of airports and train stations.

Tobacco advertising is prohibited, and cigarettes cannot be sold by the piece. The age of potential buyers is from 18 years. And there are dozens more such restrictions. Therefore, buying a franchise is probably the best option for beginners. The brand offers a proven business model that meets all legal requirements, a recognizable trademark in exchange for a fee.

How to open a franchise store

The first thing to do is to realistically assess your financial capabilities. The average amount of investments, regardless of the brand, is about 1 - 1.5 million, and this is not counting the costs of a lump-sum contribution, rent, renovation of premises, salaries of employees, tax contributions.

After registering as an entrepreneur, choose the optimal tax regime (here it is better to consult a good accountant). Obtaining special licenses, as for the sale of strong alcohol, is not necessary.

The second is to determine the target audience, so as not to miscalculate with the formation of the assortment. A simple example is that young people under 35 are actively switching from classic tobacco to electronic devices, those who are older prefer either cigarettes or a pipe.

The third is to find a room that would simultaneously meet both legal requirements (take the same minimum distance from a retail outlet to the nearest educational, sports institution) and business interests. That is, in a building located on a street with high targeted traffic.

The fourth is to choose a franchise and contact a brand representative. Fortunately, now all information from company contacts to the conditions for buying a franchise is freely available.

A little about terms

If you read the description for any franchise, then it will most likely contain the following terms:

• A franchisor is a brand that sells the right to use a trademark or logo. In other words, a company that sells a franchise.
• The franchisee is, in fact, the one who buys the franchise.
• A lump-sum fee is a one-time payment in favor of the franchisor for the opportunity to work under the sign of a recognizable brand. This is usually a fixed amount that the franchisee must pay immediately and in full. Some brands, however, may split the lump sum into several parts, but this is an exception to the rule.

Important: you can return a lump sum in one case. If the brand has not transferred the right to use the trademark to the franchisee, that is, it has not registered the concession agreement with Rospatent. You can check this information on the public online resource of the Institute of Industrial Property.

• Royalty is a monthly payment, usually a certain percentage of turnover. Rarely, but sometimes fixed.
• Turnover and profit are completely different concepts. The first is the total revenue of the outlet, excluding all expenses (taxes, rent, costs for the purchase of goods, staff salaries). The second is the amount that remains with the franchisee after paying all payments.
• The payback period is the period for which the store will "recapture" all investments and begin to make a profit. Real terms for investments from 1 million rubles - 12-18 months.

That is, for the first year and a half, the outlet, at best, will work at zero, at worst, make losses. This possibility must also be taken into account.

How to choose and what to look for

In order not to lose the money invested, not to pay for a “dummy” in a beautiful wrapper, the choice of a franchise should be approached very responsibly, paying attention to:

Terms

Everything is important here. And a list of services included in the franchise package.Will it be just the provision of a trademark or full support with the departure of the responsible manager to the place, the grand opening of a new outlet.

If this is the first business in the life of a franchisee, then it is better not to take a package with a not very clear description of “remote support”, which usually boils down to telephone conversations. There are a lot of reviews on the network in which users share information that the brand simply ignores the brand's newfound "partner". As a result, franchisees cannot agree on the lease of a particular premises for months, and face interruptions in the supply of goods.

Pay attention to the list of all payments that the franchisee must pay. In addition to the lump-sum fee, royalties, an additional payment for marketing support (printed materials, mention in the media, participation of the franchisee in any thematic events), payment for the rental of cash equipment can be included in the agreement.

Conscientious companies, by the way, always send the draft agreement to partners for consideration. So that the franchisee, if necessary, can consult with a lawyer.

What options are included in the lump sum

Ideally, the list should be clearly spelled out, for example:

• assistance in the selection of premises;
• franchisee training (remote or on-site manager);
• marketing, analytical support;
• connection to corporate software;
• obtaining contacts of verified suppliers;
• automation of business processes.

With a detailed description of each item. If the contract contains nothing but vague wording, then you should either ask questions to the representative of the franchisor, or refuse to buy such a franchise.

Reviews

Laudatory from the site of the company itself is better not to watch.All these stories about a conditionally unemployed, small entrepreneur who took out a loan (which in itself is already strange, given the current requirements of banks for borrowers), who bought a franchise, invested 1.5 million rubles, opened the first point, and after a couple of years another five and reached a stable profit of half a million - little like the truth. Of course, there are such cases, but it is far from a fact that a beginner will be lucky as well. Therefore, it is better to look at reviews on third-party review sites.

Another way to check the success of the franchisor is to drive reviews about the company's stores into the search engine. If nothing is found, then it clearly makes no sense to pay for a brand unknown to anyone at all. If there are reviews, but in them buyers share information that, for example, they bought a fake at a retail outlet instead of original electronic cigarettes, then the answer to the question of whether or not to buy a franchise of this brand is probably obvious.

Contract time

The brand owner can terminate the concession agreement unilaterally at any time. That is, to prohibit the partner from using their own brand. Therefore, it is better to choose a franchise with clearly defined terms - usually it is 3 years, with the possibility of extension for the same period.
It is also good to study the requirements of the company, which will be considered a violation of the clauses of the agreement. According to the law (namely, Art. 1037 of the Civil Code of the Russian Federation), these can be, for example:

• failure to meet service standards;
• gross, repeated violation of instructions (anything can be here at all);
• sale of goods that do not meet the quality standards developed by the franchisor.

According to the same law, the concession agreement is terminated if the brand declares itself bankrupt. Therefore, it is worth checking how things are going with the franchisor in advance.This can be done on specialized sites.

Payback

Separately, about the approximate calculation of payback - you should not pay attention to it at all. In most cases, this is the most favorable forecast for one successful store. And it is far from a fact that the estimated 40 customers per day will enter a new tobacco shop or vape shop, just as it is far from a fact that the average bill will be 300-400 rubles.
To understand how much such a business is in demand in a particular region, city, it is much more useful not to look at approximate, it is not clear where the figures came from, but to communicate with competitors. Well, or just spend one day to literally count the visitors of a particular vape shop, for example.

Ranking of the best tobacco store franchises for 2022

With investments up to 500,000 rubles

Magic of the East

Specializes in the sale of hookahs, tobacco, accessories. The year of foundation is 2014. The company promises a quick launch, partner training, and provision of supplier contacts. Speaking of suppliers, there are no restrictions on their choice. Moreover, the brand will teach you how to look for the best deals on the market.
The cost of a lump-sum contribution in the amount of 168,000 rubles includes:

• ready-made selling content for an account in social networks;
• step-by-step, practiced business instructions;
• own MI, or rather a separate site for a specific outlet;
• training - conducted personally by a brand representative;
• special prices for products from suppliers.

The brand owner recommends opening such a store in cities with a population of 100,000 or more.Initial investment for renting premises, purchasing equipment, a cash register - from 320,000 rubles, plus a lump-sum fee.

Requirements for the premises are minimal - from 40 m2, with a separate entrance and preferably free parking. All that is required from the franchisee is the desire to delve into all business processes, the desire to learn new things, and solvency, of course.

By the way, if you drive reviews about the “Magic of the East” into a search engine, we will get a rating of 4.6 stars from regular customers.

• no royalty;
• relatively small amount of investment;
• flexible conditions for the choice of suppliers;
• judging by the reviews, the format of the stores is around the clock, this is also a plus;
• the company provides contacts of existing franchisees - if in doubt, you can talk to the real owner of the franchise business.

• there are no obvious ones.

Vape Club

Specializes in vapes, electronic cigarettes, accessories, consumables for them. The first vape shop was opened in 2016, and by 2021 the network has grown to 50 stores represented in several regions of Russia.
The franchise is sold without a lump-sum fee, which reduces the amount of investment when entering the business. There is a royalty - it is 7% of the turnover per month. The average profit of a retail outlet is 87,000 - 200,000 rubles. This discrepancy in numbers is quite understandable - the company offers several formats of outlets. From islands in shopping centers with an area of ​​5 m2 to full-fledged stores with an area of ​​20 m2.
What's in the package:

• remote learning;
• finished design project;
• market analytics in a particular region;
• accounting, legal support;
• development of a trading matrix with pricing adjustments;
• 24/7 franchisee support.

Plus, participation in advertising campaigns, a ready-made marketing strategy with local adaptation, assistance in recruiting and training staff. As well as contacts of suppliers and special prices for products.
The minimum initial investment is 400 thousand rubles. The amount includes the repair of the retail space, the purchase of the necessary commercial equipment and goods. The requirements for the franchisee are minimal - registration as an individual entrepreneur, opening a current account in any bank.

• no lump sum;
• a decent number of own stores - there is definitely experience in running, developing, promoting a business;
• support at all stages of cooperation.

• royalty rate - 7% (with a turnover of a million, you will have to pay the franchisor 70,000 rubles a month, plus other expenses).

Havana Smoke

A network of stores selling tobacco, hookahs of its own production, accessories, components, souvenirs, evaporators. The network, which today has more than 26 points of sale, was founded in 2016. Prices are above the market average.
The franchise package with a lump-sum fee of 150 thousand rubles includes:

• preparation of a list of permits for opening a store;
• development of a design project, taking into account the characteristics of the premises, the wishes of the franchisee and the requirements of the landlord;
• assistance in choosing a retail space - according to promises, with analytics, monitoring, and calculation of potential target audience;
• commercial equipment - a standard version or a development with custom-made production by the franchisee;
• accounting advice on choosing the optimal tax regime, reporting at the first stages.

Plus, the departure of specialists to analyze operating activities, advice on the layout of goods, assistance in hiring employees.
Franchisees are required to be willing to work and strictly adhere to company standards. Here they value reputation and demand the same from partners. There are no other selection criteria, such as mandatory experience in trade, personnel management.

• recognizable style, logo;
• a wide range of;
• training, preparing the store for opening on a turnkey basis.

• no.

With investments from 1 million rubles

Smoking shop

A fast-growing chain of stores, sort of tobacco supermarkets, where you can buy everything for smoking. From pipe tobacco, hookah tobacco, including our own production, to accessories and electronic cigarettes. Last year, the company launched the Smoking Stick, its own brand of vaporizers that rival HQD in quality (according to the brand's owners).
To date, Smoking Shop has 350 open outlets in different regions of Russia. Here they know exactly how, what and to whom to sell. The franchise package includes:

• ready-made IM (subdomain of the main, corporate);
• assistance in choosing premises, including on special conditions - in the checkout area of ​​large federal networks;
• staff training in accordance with the developed job descriptions;
• brand book;
• design project and trade equipment.

Plus marketing support, low prices for products from trusted suppliers, promotion of store accounts in social networks.
The franchise is available for Belarus, Russia, Kazakhstan. The minimum investment amount is up to 2 million rubles. Payback period, on average, 10 months.

• large network;
• support, training of franchisees and staff;
• assistance in the formation of a commodity matrix, taking into account the region.

• high requirements for the premises - only in large shopping centers, and only on the first line (we can probably not talk about the cost of rent).

PiterSmoke

The chain, which includes 51 stores, has become the most promising retail in 2020, according to the Hookah Club Show (an exhibition, one of the largest in the industry). Assortment - hookahs, electronic nicotine delivery devices, tobacco.

4 franchise packages have been developed, depending on the location, store area:

• showcase at a gas station (contract with Gazprom);
• island in the shopping center;
• store (street retail) - with a separate entrance, up to 50 m2, in buildings, residential buildings located on streets with high targeted traffic;
• premium retail - a full-fledged tobacco supermarket, with a separate entrance, a decorated showcase, with an area of ​​​​50 m2 or a pavilion with a similar area.

The amount of investment, depending on the format, varies from 1 to 3.5 million rubles. Royalties - 3%, starting from 3 months, a lump-sum fee, again depending on the format - from 300 to 600 thousand rubles. It is possible to buy a franchise on credit, but given the decent amount of investments already at the start, this is not worth doing. The risks of being left not only without profits, but also without savings at all, with debts, are too great.
Working with a franchisor is built like this. After the application is approved, the future partner signs a commercial concession agreement, undergoes a five-day training at the company's head office or remotely. Then the brand's specialists get down to business - they prepare a design project, study the market, form a product range.From the moment of signing the contract to the first day of work, usually no more than 2 months pass.

• registered trademark;
• streamlined, proven business processes - in fact, the franchise buyer receives a ready-made working case;
• special prices for goods, discounts from suppliers;
• a small percentage of royalties.

• no.

Bazooka Store

A successful network with its own warehouses, opening 5-6 franchise stores annually. The owner of the brand promises a payback from the 4th month of the store's operation, with investments of one and a half million rubles.
A lump-sum fee is 400,000 rubles, royalties are a fixed amount of 15,000 rubles, which is accrued starting from the 4th month of the store's operation. The minimum investment depends on the package:

• 1.45 million rubles - Pro package, with remote consultations, recruitment, connection to proprietary software;
• 1.85 million rubles - ProMAX is the same, plus the design of the store on a turnkey basis, with the departure of company representatives for the opening.

The cost of the lump-sum fee includes assistance in registering a legal entity, selecting premises, providing regulations for training and certification of personnel. Uninterrupted supply of products, development and updating of the planogram for the display of goods.

• more than 70 franchised stores;
• fixed royalty;
• margin on products from 50%;
• providing contacts of suppliers.

• the payback period is doubtful - after all, not every experienced entrepreneur, not to mention beginners, can bring a new store to profit in 4 months.

So instead of a conclusion. The tobacco business is really profitable, but it requires decent investments.Responsibly approach the choice of a franchise - you can check its relevance on specialized resources. Before sending an application to the franchisor for consideration, check the brand's website, read customer reviews about the work of stores, and at the same time check whether they exist at all.

And most importantly, a franchise business is no different from any other. Is it easier to start, because the entrepreneur will work under the banner of a recognizable brand. Therefore, you should not hope that the owner of the brand will take all the work on himself. The franchisee is not a hired employee who will be constantly monitored and motivated, but a full-fledged partner. At the initial stage, of course, they will prompt, share experience. But in the future, the franchisee takes full responsibility for the business, as well as the risks.