The Romania franchise is regulated under legal aspect by OG 52/1997, modified and republished by L. 79/1998.
Launching a new business under lower risk conditions compared to traditional models (the business was previously tested by the franchisor and perhaps by other franchisee)
Using a known trademark
Assistance with business opening and daily management
As a franchisor, before deciding to develop your business as a franchisor, you should answer some questions:
Do you have a real competitive advantage?
Do you know your clients and they are aware of the value of services provided to them?
Do you want to use the franchise as a fast-growing tool?
Do you want the franchise to bring added value to your business or are you interested in developing the franchise as the main form of expansion?
Once you answer these questions, define your expansion strategy!
Hire an expert consultant to provide assistance for creating the business model, defining the profitability of the franchise business, establishing the terms of the franchise package, according to business profitability, composing franchise manuals and franchise agreement and defining the ideal franchisee profile.
Once you have prepared the franchise package and the operational model, you can move on to promotion strategy and recruiting partners for expanding your business!
There is no standard franchise agreement that can fit in all sectors of activity. Each industry comes with its specifics; for example textile retailer’s franchisers do not collect royalties, while food or service franchisers collect monthly royalties based on franchisee turnover (total net sales, minus VAT).
For a future franchise partner, it is important to seek assistance with a company qualified for understanding the commercial mechanisms of the partnership relationship (franchisor-franchise), plus the legal aspects of the contract. Some contracts define franchisor’s right to unilaterally terminate the contract by giving a 30 days written notice, but there are also franchisers with anticipated termination period of contract that includes 90 days. There is no standard franchise agreement, it must be adapted to the specifics of the business and the features of the franchisor-franchisee relationship.