Recommendations For A Foreign Retailer In Ukraine

From the moment foreign investors enter Ukraine they face a non-Western standard business environment, confusing and unstable legislation, and bureaucracy. One would need to spend a lot of time and effort to get a clear understanding of the local rules of conduct. That is why many investors prefer to have a local partner rather than be on their own.

There are two main options for having a local partner in retail: (a) franchising and (b) joint venture. Franchising requires less investment but also could be less profitable. On the other hand, a joint venture usually is more profitable but it requires more investment. Also, in the case of a conflict, a joint venture is more attackable.