Franchises to reach 1bn euros

In 2005, the franchise system in Romania generated a turnover estimated at over 900 million euros, 20% more than in 2004, according to a study conducted by the consultancy firm specialising in franchises, CHR Consulting. It is not the expansion of small franchises such as Fornetti or Allois Dallmayr Kaffe that account for the bulk of this turnover, but the production franchises of Coca-Cola and Tuborg. “The franchise market has seen significant growth since 2000. Compared to the 40 franchised brands, which were represented on the Romanian market in 2000, the end of 2005 saw 191 active brands. The markets driving this growth are services and fast-food restaurants as well as the retail sector, fashion in particular,” stated Razvan Blid, chief executive of CHR Consulting. “I”ve come to the Franchise Show to test the market. I want to open an after-hours centre for gifted children and I”ve come to see if I have competition, and if there are any franchises within this area of the market,” said Ecaterina Milea, a young businesswoman who came to the International Franchise Show to research the market. ZF