The franchise business exists on all continents, in all countries, in the most diverse areas of activity, to meet the challenge of worldwide economic globalisation and international market unification.
Romania is as a major business opportunity for international companies to extend their businesses in the Eastern European region. From 1990, when franchising entered the Romanian market, to 2000, only 35 companies started franchise businesses. Since 2002, many international companies entered Romania with the purpose of extending the business throughout Eastern Europe.
Meanwhile, Romanian entrepreneurs started to understand the advantages of opening a business under the direct protection of an international brand. At the same time, more international companies proved to be interested in the Romanian market. Among the international brands that run franchise businesses in Romania, we could mention: McDonald's, Pizza Hut, Fornetti, Coca Cola, Pepsi Cola, Carrefour, Max Mara, Marks&Spencer, Mango, Escada Couture, Beauty Shop, Lollipops, Etam, etc...
According to the most recent studies, the total number of franchised etworks in Romania will double in the next few years. The Romanian potential is a major attraction for international networks and for the Romanian economy, and the contact with successful businesses will certainly be beneficial.


Why would an international brand want to expand its business in Romania?

Firstly, because the Romanian economy is beginning to stabilize, and is becoming more predictable. The inflation rate is starting to decrease to 8.5%, with a 5% target in 2006, defining a legal framework that could encourage and sustain foreign investments in Romania.
In a similar way, the Romanian EU integration expected in 2007 will lead this country to attain the economic standards of the other EU member states.
The financial support that the EU gave to Romania through pre-adhesion funds is well-known, and these funds will help the population to increase its purchasing power, nearer to the European average.
The main advantage of an international brand in Romania is a new trade
market, with substantial needs and demand of products and services. A well known brand will be able to benefit from the exclusivity of a certain product or from the exclusivity of locating it on the Romanian market.
The new brand could rapidly attract clients on this market as purchasing power is increasing rapidly and consumers are developing more refined and sophisticated tastes.
There are brands that have already taken advantage of this market and that have made headway at a record pace, and they are all in the country’s new shopping centres. The field of commercial real estate is expanding: new commercial locations or office buildings are being built in important areas of major cities.


What did these investors find when arriving to Romania?

Firstly, they found a lenient legal framework, low taxes and fees, advantages for foreign investments made on the Romanian market, and highly qualified and cheap work force compared with the rest of Europe. All these points allowed the investors to form a professional team using their own tools, to implement personal training strategies as well as marketing strategies already tested on mature and structured markets, and to apply a new price policy.
The Romanian entrepreneurial spirit is well developed, and thus, Romanians are now expressing their need to start and invest in their own business. Every month, more than 10,000 visitors consult www.observatoiredelafranchise.ro in Romania and 5% of them apply and complete the candidates’ application form.
Romanians’ interest in franchising is getting bigger as information is becoming increasingly accessible and new financing are being introduced in Romania. The market is very "brand-oriented" and for Romanian people, the easiest way of developing their own business is by buying a successful formula rather than starting and building their own business from scratch.


How should a foreign brand be handled in order to channel it towards entering and performing successfully on the Romanian market?

The most efficient way of entering the Romanian market for a franchiser is to appear on the website Observatoire de la Franchise, which is today the most recognized tool for franchisees and investors. Participation in trade fairs and exhibitions can also be a bonus. We also strongly advise Romanians to open the first shop quickly when they can, because the Romanian people only believe in what they see. The way a shop is set up can serve to create openings, and give access to a fast growing market.
We strongly recommend choosing a local partner for which the brand can delegate the management in all areas and the selection of potential investors.
For that purpose, Observatoire de la Franchise has selected DC Invest, which is a company specialised in the support of foreign companies in various fields in Romania. They have their own logistic and infrastructure, which enables them to carefully select potential candidates and conclude deals quickly.

Romanian version of this story >>>