The franchise industry in Europe is worth 350 billion euros, while Croatia is the last in Europe in the franchise business

first_imgWhen we talk about earnings from tourism, the first thing that comes to mind are accommodation services as well as catering services. But that’s just the tip of the iceberg, especially in tourism where tourism spending is dispensing vertically and horizontally to other industries.One of the important sectors is franchise, which is still in its infancy in Croatia, while the franchise sector in the world generates more than 50 percent of world retail, and research in the European Union shows that, for example in Italy, 96 percent of franchise brands are national. In Poland, there are 73 percent, in Slovenia 48 percent. However, Croatia, with 12 percent of its own brands in the franchise business, ranks last in Europe. There are currently about 200 franchise systems operating in our market with about 17 employees operating in more than a thousand franchise locations.This important topic was discussed at the Fair of Franchising, Financial and Consulting Services FEC (Franchising Exhibition Croatia) in Opatija. “We need to create a good business climate for all our member states and ensure the lowest possible level of state regulation. Economic growth is accelerating by encouraging franchising. The franchise industry in Europe is worth 350 billion euros and employs more than three million people. That is why such fairs are so importantand ”, believes the president of the European Franchise Federation Michael Eyre.Experts advise entrepreneurs, before starting a business, detailed education on franchising, which is especially stimulating for the growth of small business. They have to understand, they say, that quality business concept design is a prerequisite for franchise success, so it will not happen, as was the case in Croatia, that franchises open quickly to reduce costs and shorten time, then close them quickly and so on. affect the image quality of the franchise and discourage future potential franchisors.A good and encouraging example is the Croatian franchise Surf’n’Fries, founded by Andrija Čolak and spreading around the world. These are mobile “stands” and trailers for selling french fries on beaches, fairs, festivals and other events. Colak explains that the Surf’n’Fries franchise costs 9+ VAT, but if the entrepreneur is involved and has a good location, he can return the investment in 400 days. There are over 45 Surf’n’Fries mobile stands in operation along the Adriatic coast. “We give him full support, from employee training, warranty on technical elements, distribution and delivery of all goods and packaging, and advise him to facilitate the whole process at the beginning in order to get on a sound foundation as soon as possible.”, Says Andrija Colak in the recent interview for HrTurizam.hr, adding that in accordance with the franchise agreement, ie royalties, it amounts to 5 percent of the turnover.In addition to Surf’n’Fries mobile stands, Čolak has designed a new innovative product – Surf’n’Fries Trailer, ie a trailer intended for the needs of major events, festivals and fairs. “Mobile stands weigh over 300 kilograms and are difficult to move, we have developed another format – surf n fries trailer. Just targeted for events. It is a trailer in which everything is set up and ready for work immediately at any location, wherever an event, festivals, fairs are held…”, Continues Čolak and adds that the same conditions apply to the franchise, but as this is a much more serious and demanding entrepreneur story, so the amount of the franchise is higher and amounts to 28.000 Euros + VAT.Croatia is recording a large increase in the number of apartments for rent to tourists, and today there are five times more of them than in 2014. The main activity of renting apartments opened the space for a number of other service activities such as laundry. Although there are still landlords who wash and iron their own laundry for apartments in the “old school” way, more and more of them decide to entrust this job to the laundry. When financial and time savings are added up, it is most cost-effective to hand over the laundry job to one of the professional laundries.The White World brought the Laundry Lounge concept to Croatia. LG Laundry Lounge is a brand of self-service laundries that provide laundry, drying and ironing services. The first one was opened in New York five years ago, and the second in Zagreb two years ago. Mario Martinek, the founder of Bijelo svijet, told Privredni vjesnik that since last year they have been a strategic partner of the strong global brand LG Electronics for market development and distribution in Central and Eastern Europe, and their main activity in Croatia is sales, design, equipment and maintenance of hotels and restaurant kitchens and laundries and staff training. “Today, we do business with hundreds of users of various profiles, from large companies to small entrepreneurs. The knowledge and processes we have acquired enable us to design original concepts tailored to the client in a short time. “, explains Martinek.The results so far show that laundries in most cases achieve a return on investment after only 12 months. It is also an advantage to work with cash, without deferred payments and uncollected receivables. “We help new entrepreneurs in all phases of opening a laundry – from choosing a location and furnishing the interior, through help with marketing and sales activities to the financial forecast.”, Says Martinek.The franchise industry in Europe is worth 350 billion euros and employs more than three million people, which is a good enough signal that franchises as a successful business model are starting to be applied more and more in Croatia. And here are the opportunities for new entrepreneurs.Related news / ANDRIJA ČOLAK, SURF’N’FRIES: RETURN ON INVESTMENT OF MOBILE SURF’N’FRIES STANDS IS 45 DAYSlast_img

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