Dear Ladies and Gentlemen,

Call your attention to the main results of the Franchising 2005 first international specialized trade show.

Franchising 2005: in Numbers

Net exhibition space (sq. m)	282*
Gross exhibition space (sq. m)	820
No. of visitors	5,159*
No. of exhibitors, including foreign ones	36* 3
Countries represented (Great Britain, Russia, Ukraine)	3*
Franchises represented	30

*Data are currently being audited. Carrying out an audit guarantees exhibitors and visitors objective and trustworthy information, which allows the marketing potential of the trade show to be realistically evaluated. The audit of statistical data is being carried out by the BDO Balance-Audit company in accordance with methodology of the CENTREX international exhibition union.

In the program of events took place:
Seminars	9
round tables	1
Accredited mass media:   of which: - printed media, of which   foreign (Russia) - Internet publications - information agencies - TV and radio companies	48 36 1 4 2 6

The following persons participated in the press conference and official opening ceremony of the Franchising 2005 trade show:

• Piotr Kalita, President of the Ukrainian Association for Quality;
• Andrei Krivonos, Director of the Board of the Ukrainian Association of Franchising;
• Elena Pavlova, Director of the UkrStandartFranshiza company;
• Valerii Pekar, President of Euroindex Ltd.

Media Support
The business media partner of the trade show was the Business newspaper.
Video coverage of the trade show was broadcast on the following TV programs: World of Business (UT-1), Business Facts (ICTV), SNT (Kyiv channel), Economic News (Kyiv channel), Big Money (Channel 5), Economic News (Gravis channel). The trade show was covered by the following information agencies: UKRINFORM, UNIAN.

Distribution of Visitors by Day

Program of Events

Within the framework of the Franchising 2006 trade show, a wide-ranging program of special events took place devoted to current issues in business development based on the franchising model. Visitors heard presentations by leading specialists in this area.
The Ukrainian Association of Franchising held a series of plenary sessions, at which the following themes were discussed:

• The current state of franchising in Ukraine.
• The way forward for Ukraine into the WTO and EU.
• The right way to become a franchiser.
• Franchising agreements.
• Intellectual property in franchising.
• A universal franchising model. The Mysterious Buyer, as a service in franchising.
• Franchising in Russia.
• European trends in franchising.

Speakers covered development tendencies in franchising projects in Europe, Russia, and Ukraine, as well as sharing with colleagues and listeners practical recommendations and secrets of successful cooperation in the area of franchising.
The following speakers made presentations: A. Krivonos, Head of the Board of Directors of the Ukrainian Association of Franchising; P. Kalita, President of the Ukrainian Association for Quality; A. Tsisar, Director of the MarketingLab company, A. Nazarenko, Editor-in-Chief of Commercial property / Everything about the Real Estate Market; A. Khodakov, DeloShop (Russian Federation).
Discussion sessions and seminars also took place, at which various aspects of successful operation of, and the development of, franchising in trade, in public catering, and in the service sector were discussed.

Quotes by Exhibitors

Franchising exhibitions are of the utmost necessity. Prospective investors (of the franchise) must have the opportunity not only to choose for themselves an object for investment (of the franchiser) from catalogues and advertising materials, but also to have discussions with the franchiser's managers.
The thing that I liked most about the trade show was the high turnout of visitors. The Organizers have managed to interest and to attract entrepreneurs, which is a big plus! We made loads of contacts, but about concrete results, we'll only be able to tell you after the trade show.
The trade show proved that the Ukrainian market is ready for franchising. Entrepreneurs from Kyiv and from the regions came here with the specific aim of acquainting themselves with representatives of franchises and in the future to buy a ready-made business. During talks, we saw that they understand what franchising is, and that they are prepared to work based on these technologies.
We are happy with the trade show — with the amount of visitors, and with the fact that there were lots of people from the regions. Many visitors, straight after business talks, visited the Chaikof cafe, and the Stancia computer clubs, and we will continue negotiations with them after the trade show. Next year, we will definitely take part in this trade show.
I think that the Franchising trade show has a future - and a good one at that!
The number of visitors, and their interest in the trade show, has exceeded our expectations. There were more people than at the analogous first trade show in Moscow. Virtually all regions in Ukraine were represented — all the cities which we are interested in were here. Entrepreneurs were not just interested in where to put there money in general, but rather arrived with an aim in mind, already having premises, and assessed business plans. And over the 3 days of the trade show, we didn't once hear the question, "What is Franchising?", although our booth is the nearest to the entrance, and we had been expecting to hear this question.
In contrast to European countries, in Ukraine there is a lot of interest in franchising, since the market is already saturated there, and here it is only just starting to develop. In the opinion of our Swiss partners, who visited the trade show, in Ukraine there is very large potential for the development of franchising.
We made many contacts at the trade show with prospective customers, talks with who we will continue after the trades show. Visitors included people who were already prepared to look for premises for our franchise today.
So far, I can say that we have got much more out of this trade show than we were expecting. There are a lot of interested visitors here from all over Ukraine. We were even invited to visit some of them straight after the trade show, to look at the financial side of projects. I'll be able to give you a more specific answer in 2-3 months, when the contacts we made at the trade show are followed up. We will definitely take part in the Franchising trade show next year.
Also for us, it has been very interesting to get to know franchisers, who are working in the Ukrainian market, in person. It is possible that after the trade show, we will purchase one of the franchises presented here.
Our offer interested a lot of people. The trade show was visited by representatives from different regions of Ukraine; many of who were from Poltavska, Zhytomyrska, and Chernihivska Oblasts. The development of franchising in these regions is a business development priority today for our company.
After the trade show, we have got a range of offers which really interest us, and they are all being looked at and evaluated by our specialists.
The trade show gives us the opportunity to discuss, share experiences, and to compare. Today, every company which sells franchises in Ukraine does business in its own way, overcoming problems and coming up against obstacles, such as the imperfection of the legal infrastructure. For these reasons, the trade show facilitates getting answers to interesting questions, discussion, and finding ways to solve these and other problems.
Before the Franchising 2005 trade show, our company was not actively involved in franchising. The trade show confirmed however, the demand for franchising in the Ukrainian market — the flow of people, their high degree of interest, and the fact that they want to develop business based on franchising, shows the readiness of Ukrainian entrepreneurs to set up businesses based on this model.
By taking part in this trade show, our objective was to present our services to companies involved in franchising, and to offer them our services. A very high degree of interest was shown by visitors. And, I think, that after this trade show, we will sign 3-4 franchising agreements. We have already had a series of talks with Ukrainian franchisers, who are interested in selling their franchises, and we think that after the trade show this will develop into fruitful cooperation.
As our partners from Moscow remarked, the franchising 2005 trade show in Kyiv will serve to push forward rapid development of franchising in Ukraine.

Press Reviews

…the very fact that such a trade show has been organized tells us that franchising in Ukraine is alive and developing. This is also shown by the timely publication, before the trade show, of the broadsheet Catalogue of Franchises 2006. Franchisers are in an optimistic mood, and are predicting that in 2006, the number of chain businesses, which are currently based on franchising, will double.
Today in Ukraine, over 200 franchisers are actively developing their business in various sectors of the economy. The total number of domestic franchises already exceeds 2,000. As foreign experience shows, the most effective marketing tool for franchisers is the specialized trade show. Such trade shows take place in many large European and US cities. In Ukraine, the first trade show of this type was Franchising 2005.
The undoubted success of the first Franchising trade show gives reason to say that the foundations have been laid for a new annual trade show on this theme.
A new impulse in the development of the franchising business in Ukraine has lead to the first specialized international trade show, Franchising 2005.
Alongside the Franchising trade show, at KyivExpoPlaza exhibition center, another specialized trade show also took place simultaneously — Money EXPO / Groshi EXPO, at which banking services, insurance and financial services, and services offered by credit unions were presented. A full set of information from franchisers, legal, consulting, and financial establishments will certainly assist many entrepreneurs in choosing the right franchise, and setting up their own business.
The trade show was accompanied by an action-packed business program, at the events of which beginner-franchisees acquainted themselves with the key aspects for developing a business based on the franchising model, and specialists discussed current issues of franchising in Ukraine.

Photo-report

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