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FRANCHISING IN BULGARIA




Aspects and topics of franchise development


Franchise has shown an high and swift development during the latest year. Completely unknown until 1989, this modern system of retailing has spread over Bulgaria in many different sectors, starting by food and beverage and clothing, to slowly cover many other categories as, for example cosmetics, hotels, oil sector, services etc…
The franchise formula represents a very interesting system for Bulgarian entrepreneurs, who are able to save efforts and funds for marketing and advertising by it. However, Bulgarian operators get into some difficulties due to taxes for working by franchising; these taxes fluctuate from 15.000 to 75.000 Leva (1 Lev = 0,51 Euro). Small and medium – sized enterprises often have to ask for credits which require firm securities. Unlike other countries, Bulgarian banks don’t have any specialized department to finance franchise.
The Bulgarian Confindustria (BIA) and the Bulgarian Franchise Association organise courses to get trained on the franchise system. Moreover, there is a private consultant company, specialized in the franchise sector, which prides itself on a deep experience in this field and an high know how, which works to support Bulgarian and foreign franchisors: this is the Global Consulting Ltd.
Franchise in Bulgaria can trust in the Bulgarian Franchise Association (BULFA), founded in 1994 in Varna, to promote and strengthen the franchise. The association counts about 50 members, including the most important brands.
The BULFA provides skilled consultants, economist and attorneys to help and support the franchisors.

InfoFranchise Group is present in Bulgaria with its Franchise portal at the address: www.infofranchise.bg


The Bulgarian franchise association organizes the first Franchising Workshop in Balkanises, “Franchising Day in Bulgaria 2007 – Internationalization  of Bulgarian franchising companies, in the aim of offering to Bulgarian companies the possibility to discuss the priorities and the difficulties of the European market. It will take place in April.



Date: 02/04/2007
Source: InfoFranchise Press

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