IKEA: most expensive franchise on Romanian market

Romanian businesspeople have acquired a taste for franchises and are now playing in the big league. The most expensive franchise brought onto the Romanian market is IKEA, with an initial tax of 11 million euros. “On average, the investment entailed by the acquisition of a franchise amounts to 55,000 – 60,000 euros. IKEA was brought onto the market for the total value of 36 million euros, a sum that includes the investment in the store and the initial franchise fee,” said Razvan Blid, chairman of the Franchise Networks Association in Romania, at the RoFrancize International Franchise Fair, which took place in Bucharest at the end of last week. Therefore, the initial franchise fee for IKEA, one of the best-known brands worldwide, amounted to around 10-11 million euros. IKEA also charges other fees from its franchisees, including an annual 3% sales fee, according to The Economist. Contacted by ZF, company representatives denied the value of the initial fee, and declined to specify its amount.