"Franchising is a proven and successful model" *

Actually the members of the Bulgarian Association of Franchise are just over 20. In Bulgaria there is still no law on franchising. And if our country does not come out soon with a draft, the model will be imposed by the EU, which is already working on wide law on franchising.

"Bulgarians love to try new things, especially now when people travel more often, they known very well part of the world and European circuits. So in Bulgaria, they will have a market very easily - experience shows that the companies which already entered on our market started to develop well."

According to Mr. Valentin Krastev, marketing director of the Bulgarian Association of Franchise, the prospects for the development of franchise schemes in Bulgaria are very good. Especially now the area of services in the field of restaurants and bars successfully developed - models of KFC, McDonalds, Happy Bar & Grill. Here are already Onda, Coffee Heaven, Costa Coffee and others. "Starbucks" and English "Reviva, are expected very soon.

The main drawback in franchise model are the big taxes charges. But that is the price paid for the brand name, in which the mother company invested and developed many years along. It is a symbol of quality and the client mist pay for it.

Franchising is very liberal and flexible form of government. The owner manages the business by itself and takes decisions all alone, but his big plus is that he is supported by the brand. These relations are based on the tremendous trust between the two parts. The aim is to achieve the win-win model which means profit for both sides. So business wins and develop better.

If the market is good and relations between the two sides are correct, the model is successful to a large proportion of cases. Worldwide figures show 85 percent success against 15 percent bankruptcies.

It must be remembered that it is not only a question of good franchise model, very important is also the recipient of that tested and stable business. If he is proactive, if he's working hard and do things properly, chances of success are much higher.

* From the interview of Mr. Valentin Krastev, marketing director of the Bulgarian Association of Franchise for "HoReCa " magazine
Author: Annie Kodzhaivanova