It is imposible to drive down any Main Street in one of Romania's big cities without passing a franchised business: fast food, retail, dry cleaning or hotel room, to mention few of them. Franchising has grown so rapidly in the last five years, that by the end of 2004, 180 franchisors made business of almost $ 1 billion. And that's only the beginning.

Franchise entered the Romanian market soon after the Revolution.. Since then, the francise market started to grow, and now it is an essencial part in the Romanian economic environment

When asking a question like : "What can franchise can do to my business to grow?" think about USA, the leading country in this domain, where allmost 40% of the Economy is sustained by the franchise. It's lot more easier to buy a wheel then to invent one. That's the hole business with the franchise.

Internationally , franchising has become one of the intangible great exports for the developed economies. Franchisors have first penetrated the Iron Curtin with a long list of industries including retail, service providers and restaurants. It is well know that the first american business in the Rusian Federation after the cold war was a franchised McDonalds Restaurant, in the early 90s. The markets in EU, South America and Africa are importing a new business style . The exports of business technology to the emerging markets using the franchise system creates new jobs, good management examples, economic development and strong business relathionships.

It is important to undestand franchising and understand that Mcdonald's does not franchise hamburgers nor does Hilton hotel rooms . What they both franchise is a business system - the brand, the product, the know-how and trainig - that in the end delivers the same hamburgers or same quality hotel service enywhere in the World.

Franchising confirms investors and share holders of a company that a business is working it's way to the top, and using franchise you can get there sonner.

An entrprenour or an independent business person should understand that franchise is a double win system. If you want to succed you have to listen to the franchisors experience. For a franchise to work, it is the responsability of the franchise to control the system and the franchisee to folow the methods, layed down by the system.

Franchise in Romania

Romania is still learning the franchise language.

At the moment from 180 franchises available on the Romanian market, 43 are coming from USA, 21 from Italy and 18 from France. Romanian business are in a number of 38 franchise . Names like Turabo Caffe, La mama , Depozitul de calculatore or Fitness Academy offers a system that has proved it efficiency. But the market it's still at it's begining and in the next 5 years the franchised business available will double reaching 400 franchises.. That's a lot of money involved and lot's of opportunitiess for the romanian economy and it's players.

How do i obtain a franchise?

First off all, there are three main domanins : services, fast food and retail. It's lot more easier to decide what kind of franchise you want to follow if you know for sure witch one of them fits you best.

After that , you should ask refference about the franchised businees, you are interested in: legal terms, financial results, franchise history , market developing for that domain. It's lot more easier to ask a franchise consultant than to research yourself, because you save time and energy.

Third, you get in contact with the franchisor representative, and have the preliminary talks in witch you can find useful information about the business and terms of colaboration: total investment, contract dealings, techical issues

If everything turns out to be ok for both parts, the next step is signing the contract and making the proper arrangements to start your business. From now on you can consider a franchisee and the succes of your new business depends of

Statistics made by IFA ( International Franchise Associations ) on the American market, relives that over 80% of independent small business fail in the first five years , and during the same time only 5% of all franchise fail. This showld not be a guaranty of your succes ,but just an encouraging of the franchised bussines potential

Dictionary

Franchisor - the legal owner of the franchised business.
Franchisee - the buyer of the franchise licence .
Franchise Contract - legal agreement between the franchisor and the franchisee, that stipulates terms of the future colaboration. Is the base of any franchise businees.
Know-how - documentation containing the hole experience and techical procedures regarding the franchised business provided by the franchisor to the franchise in order to implement and develop the new business.






Marius Dan
Communication Coordinator
THINKBIG INT.
www.thinkbig.ro
[email protected]

0722 278 679
021 634 39 50

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