International Leasing to grow through franchises

Toni Tataru, chief executive of International Leasing, says he has chosen expansion through franchises to secure the long-term development of his company.
“I’ve come to the conclusion that the franchise system is the best solution for the company’s development after having analysed activity expansion alternatives. In terms of time and costs, we felt this was a more advantageous solution than development through the opening of branches countrywide,” stated Toni Tataru, International Leasing’s CEO.
The idea came up early this year, and a thorough market research was conducted before being put into practice, according to Tataru, in order to determine whether the name of the company could sustain the project and how well known the name was in the cities franchises would be granted.
“We conducted internal assessment operations and during the April-August period we carried out brand refreshment activities to modify the look of the logo. We consider it is now ready to sustain franchising and therefore we shall expand through franchises over the following 3 years,” added Tataru.
To prepare the methodology and the technical software of the system, where the franchisees will be included, International Leasing has so far invested almost 100,000 euros.
The franchising process first started with an evaluation of partners, together with CHR Consulting consultancy, specialised in franchising operations particularly in the financial domain.
International Leasing plans to grant at least 10 franchises by the end of next year.
Costs related to the development of an outlet outside Bucharest, to be handled in line with criteria imposed by International Leasing, will reach a maximum of 40,000 euros, Tataru estimates.
The network currently includes nine agencies in cities such as Timisoara, Brasov and Iasi.
Tataru expects the first franchise contract to be signed by yearend, when the almost six-month testsing period ends.
During this period of time, assessment is carried in parallel with a productive training programme with certain sales targets being imposed to partners, as well as a certain company presentation style.
“We want to seal the first contract by early January and have agencies in other cities of the country, as well. We are now in talks with partners from Cluj, Bacau, Ramnicu Valcea and Oradea, because I want 40% of the business to be generated by franchised companies,” says International Leasing official.
The target has almost been hit, given that in September 30% of the financing activity was handled by agencies.
The company in the first three quarters of this year posted 23% higher sales compared with the similar period of last year.