The report on franchising in Poland 2004/2005

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poleć stronę: The report on franchising in Poland 2004/2005

2004-12-15

The consulting company PROFIT system, specialised in a complex franchise advice, presented for the third time the Report on franchising in Poland.

On 18th November 2004 during the press conference PROFIT system presented the Report on franchising in Poland 2004/2005. The lecturers were: Michał Wiśniewski, Arkadiusz Słodkowski, Andrzej Krawczyk of PROFIT system, Jacek Cabaj - the director of TelePizzy Poland and Urszula Potęga – the president of MTPolska.

39 new franchisers

Nowadays there are 210 franchise networks operating in Poland (in comparison to 171 one year ago) and their number has been increasing (before the year 2002 Polish franchise market was growing by over a dozen networks per year, in 2002 there were 26 new franchisors, in 2003 – over 27, and in 2004 – over 39). Franchise systems operate in almost every trade and services sector. Compared to shares issue or attracting a financial investor franchising is considered an alternative chance of raising money for a further expansion of their chains in order to take advantage of scale effect.

1500 new franchisees

A supply of franchise concepts rose in 2004, and so did demand of potential investors for franchise licenses. The number of franchisees significantly increased during the last year – nowadays they own over 13500 franchise outlets (an increase of more than 1500 outlets, which is 14,4%).

In a year 2004 the potential franchisees showed a higher increase (than in previous years) of interest in franchise purchasing. Franchisors received much more applications than before. More franchise agreements were signed as well. The same increase of investment optimism, which may be observed on a real estate market (more mortgage loans despite interest rates increase) or on a stock exchange (large issue of shares and reduced shares demand), was also present on franchising market. Average franchisee investment in 2004 rose up to PLN 325.000 from PLN 291.000 in 2003 and PLN 294.000 in 2002.

In 2004 the total net investment of franchisees amounted to PLN 4,45 billion (circa EUR 1,1 billion). Potential investors have possibility to choose from over 200 franchise offers with a required investment ranging from several thousands to several millions PLN. The highest capital is needed when investing in petrol stations (about EUR 1 mln), the lowest - in small services systems (even less than EUR 1000).