“We’ve got room for growth in all sectors but we’re seeing a preference for the hotel—restaurant-catering and services segments, where growth is faster. The entrepreneurs’ interest has increased in the past two years and they have been looking at franchising more and more as a way of scaling their business,” says Paul Voicu, managing partner of consulting company francize.ro. He attended the first edition of the Forumul Investitorilor in Franciza (Forum of Franchise Investors) on Thursday, organized by ZF and attended by about 300 people.
The partners of the event were Banca Transilvania, 5aSec, Amazing Jewelry, Expense Reduction Analysis, Ingloot, Institution of Microtraining, Inventure, Hitio, logiscool, LMI, Oro Toro, Pizza Hut, Reisswolf, Subway, Studio 20, and support partners Champollion and Crama Domeniile Panciu.
There are both Romanian and international brands on the market, but Romanians are more attracted by those from abroad, so international brands account for more than 60% of the market.
“We have a wide variety of franchises, we can choose brands from zero employees to a number of employees, from small investments to investments where they sky is the limit, the idea is to set the finance, risk and involvement mix everyone can do,” Paul Voicu added.
As an entrepreneur it is very hard to find the idea worth investing, says Sergiu Negut, business angel, while a franchise comes with the great advantage that the business model is already functional.
“The great advantage of the franchise is that the business model is already functional. Customers here come because they are attracted by that business. All one has to do is go to a franchise, take notes and make a decision.”
The entrepreneurs who seek to invest in a franchise must pay attention to figures and the development of their business, know clearly what motives them and be constantly involved in their business, believes Raluca Stanciu, managing partner francize.ro.
“Those who want to invest in a franchise must see what motivates them because people say a franchise is a recipe for business, a paved road. One must not invest in a franchise just for profitability.”
Another important thing for the success of a business, says Jesper Nielsen, Amazing Jewelry CEO, is the quality of employees, and partners on a new market must be strong to be able to grow the business.
“People are the ones who contribute to the development of the business,”
His company seeks strong partners in the countries where it plans to enter to grow the business. One of his guiding principles, Jesper Nielsen said, is do what he does best.
Entrepreneur motivation is also one of the criteria Magdalena Hueni, international franchise director of Reisswolf looks at, as the brand and business model help an entrepreneur invest in a franchise.
“We look at the business power and willingness to work a person has. Even if they have the money, we don’t want a person who is not willing to take certain steps before signing the contract.”
Romania must not be ignored by the investors looking to develop their companies, because it has ample growth prospects for the next decade and the partners here are some of the most dynamic in the world, says Marcin Zaborowski, director for international outreach and cooperation Inglot Cosmetics.
(English version by Loredana Fratila-Cristescu)