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Survey conducted in the period August - October 2010 by Franchising.BG
We present you the second survey on the franchising market conducted by Franchising.BG. Its aim is to establish the status of franchising in Bulgaria, the present-day challenges it faces, the affect of the economic recession on it, the perspectives and expectations of entrepreneurs about the future of franchising.
The results are based on the information received through completing questionnaires and conducting structural interviews with 69 franchisors and 241 franchisees. The respondents operate in sectors which offer opportunities for starting a franchise business in Bulgaria: restaurants, real estate, retail, services for citizens or businesses, etc. The survey includes data from companies with at least 3 operating franchise units. Additionally, accounting and statistic information has been used.
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Tony Fitzpatrick will be in Bulgaria on 26th and 27t h of November to take part in the conference “Franchising Business”, part of the Franchising Expo 2010 in the National Palace of Culture.
 Which is the most difficult part when someone decides to develop and start his own franchise?
Understanding that franchising your business is not easy and it is not cheap. Realize that you will be in franchising for the long haul so prepare for it. Building your new business will take time and patience. You’ll need a proper plan, proper management, and proper funding. Above all else, you’ll need to offer leadership, motivation and support.
What is the profile of the companies that chose to franchise their business?
They are businesses that have operated successfully (and profitably) for at least one year and preferably two, can produce audited accounts, and can offer a franchise that is good value and can make a return on investment in the short to medium term and a good living for its owner.
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Sotiris Yanakakis will be in Bulgaria on 26th and 27t h of November to take part in the “Franchising Business” conference, part of the Franchising Expo 2010 in the National Palace of Culture.
 How did you decide to specialize in franchising law?
My decision to specialize in franchising law was influenced by my involvement with the McDonald’s franchise in Greece in 1993. At the time franchising was a very new concept in Greece.
What are the most common problems in the franchisor-franchisee relationship?
The franchisor must be sure that the person with whom he collaborates is suitable for the particular type of franchise or indeed has the capacity to accept the responsibility of owning his own business. This is very important for the franchisor because the franchisor entrusts his reputation, his trade name, his trademark, his goodwill, his business in general to the franchisee. The franchisee must be responsible and collaborate, or enhance the reputation and the trade name of the franchisor while protecting them from encroachment.
Franchisors specifically face problems of collaboration, communication, control and supervision with the franchisee. These are problems with which the franchisor would be faced while running his own business.
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A survey conducted by FRANCHISING.BG in July – September 2009
This is the first survey on the franchising market, conducted in Bulgaria. Its aim is to determine how well-developed franchising in Bulgaria is, what challenges it meets, how the economic recession affects it, what the perspectives and the expectations of the entrepreneurs about the future of franchising are.
The information in the survey is gathered through questionnaires and structural interviews with 34 franchisors and 126 franchisees: restaurants, real estate, retail, services for citizens or businesses, etc. The survey includes data from companies which have at least 2 operating franchise units. Additionally, accounting and statistic information has been used.
The present survey focuses on franchise systems which offer opportunities for establishing a new small- and medium-sized business. Its aim is to determine the opportunities of small- and medium-sized entrepreneurs to start a business by buying a franchise. Hence, the survey does not cover franchise businesses (media projects, financial institutions, fashion stores, fast-food restaurants), which started by obtaining franchise rights but do not offer to other entrepreneurs the opportunity to start a franchise business. The main reasons for this are two. First, if an entrepreneur has obtained the regional franchise for Bulgaria, then all units opened in the country are owned by them. Second, some businesses do not require opening units in different cities (i.e. if one buys the franchise for to publishing a magazine, they need one editorial office).
The survey separates sales to consumers of goods and services from development and sale of the business concept itself. The first case is about the business of separate entrepreneurs who have bought a franchise and opened a shop, a restaurant or other franchise units. The second case - about successful companies which start granting the right to use their brand name and proven business model to other entrepreneurs.
The survey was conducted during the period July, 10 – September, 15 2009 by FRANCHISING.BG. The aim of the company is to popularize and develop franchising in Bulgaria by consulting and creating franchise systems, and by mediating in the sale and purchase of franchises. Among the projects of FRANCHISING.BG, is Franchising Expo which takes place in the week November in Sheraton Hotel, Sofia.
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