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Even though term “franchising” doesn’t exist in legislation yet, considerable changes in law are undertaken in order to foster development of this business model. Moreover there’s strong institutional support for franchising, for instance, Russian Franchise Association is a non-profitable organization that exists since 1997 and aims at development of franchising in Russia.
Economic factors
Real income growth and recovery of consumer confidence and spending
The average Russian consumer is largely debt-free and has a larger discretionary income as a percentage of pay than his or her counterparts in the West.
Low labor costs
Russia is a favoured destination for immigrants from Central Asia, who continue to arrive in large numbers.[5] Large amount of low-qualified immigrants from former soviet republics – Kazakhstan, Kirgizia, Tajikistan, Turkmenistan, Uzbekistan result in lowering of labor costs in certain industries.
Social factors
Urbanization
Around 73% of Russians live in cities and towns, while the remaining 27% live in rural areas. The biggest part of population is concentrated in Moscow (11,5 million) and Saint-Petersburg (4,8 million), however, there’re 10 more cities with population over 1 million people.
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