Making money off other people's ideas

“You’re only smart when you realise there are others smarter than you out there and if you want to start a business, then it’s easier to pick an already made one. The only thing you have to do is work. This is what a franchise is.”  Attending the International Franchise Salon in Paris at the end of last week, architect Doru Prioteasa is one of the Romanian business people who feel time for franchising in Romania has come.
As do the about 400 Romanian business people that have joined the foreign commercial networks through this system so far.
Coca-Cola, Pizza Hut, KFC, Best Western or Marks & Spencer – all of them are well-known international brands, which have long stopped expanding on their own. There are about 40 major international chains operating as franchisers on the Romanian market, as well. Which makes up as many as there were in France about 30 years ago or in the United States some 50 or 60 years ago. The franchising trend has caught in the West in the last two decades, so that France, for instance, has more than 700 franchisers and about 33,000 franchisees now, with the overall turnover of these networks amounting to 33bn euros last year. The 21st edition of the Salon in Paris brought together 300 franchisers, most of them French, but also American, Spanish and Italian, as well as consultancies and banks. Moreover, even though most of the companies attending the event were targeting the French market only, the interest for the Eastern European countries, including Romania, is visible.
“The Eastern European countries are closely watched by the French franchisers; the assistance provided under a franchise contract is most welcome for the Romanian merchants. Several franchises, such as Accord (Ibis i.e.), Yves Rocher or Carrefour have already expanded in Romania,” Chantal Zimmer, general delegate to the French Franchising Federation says.
A potentially good business for the Romanian market, which is also making quick progress on the Western markets, could be the kids clothing, footwear and accessory stores. “Who can say no to a child? Such shops will develop in Romania. There’s demand and there’s also franchise supply for this segment,” said Razvan Blid, representative of CHR Consulting, a franchising consultancy. Several retail chains, that is Neck & Neck (Spain), Jacadi (France), Orchestra (France) are interested in finding partners for the Romanian market.
Other companies looking to expand by a franchise in Romania are Point S – service network, already operating throughout Eastern Europe, 5 Aa€c Sec – a dry cleaning network, Sac Story – purse and bag stores selling products by price categories, and Lollipops – a fashion accessories network. People in Bucharest might also see an advertising truck running on the streets. This is a concept developed by the MobileAfiche French company. MobileAfiche is yet another firm that may expand in Romania via franchise.