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(Last updated: 27 Mar 2009)
Trends and opportunities
The market
With a population of over 38 million people demand for effective distribution systems as well as sophisticated services is growing significantly.
The popularity of franchising, as a alternative method of establishing and building one’s own business has been on the rise for a number of years in Poland.
A growing number of Polish entrepreneurs have decided to transform their firms into franchise systems. Poland’s EU accession and growing interest in the Polish market on the part of foreign systems have also contributed to a greater number of franchise systems.
In 2007 franchisees invested over A$0.5 billion in franchising businesses. In 2007-08 there were estimated 440 business franchisors in Poland, of these 72 per cent were Polish-based franchise systems.
There are an estimated 19,000 franchisees running 22,700 units operating franchise systems in Poland, which is over eight per cent more than in the previous year.
In 2007, Franchisees experienced an increase in income from sales, by 44 per cent compared to 2006, reaching A$33 billion, which accounts for seven per cent of GDP.
The average franchise investment in Poland is between A$12,000 and A$155,000. The highest cost of investment is required in petrol stations and supermarkets and can exceed A$2.5 million.
(Source: Franchising in Poland 2008 report prepared by Profit system)
According to research by Jones Lang LaSalle, Poland was the third most popular destination in Europe for retailers expanding internationally in 2007 and 2008 after Turkey and Russia.
'Although the current economic slowdown has impacted upon demand, retailers are still showing an interest to enter Central & Eastern Europe. Many are now only considering franchise partners to minimise risk', said Neville Moss, head of European research at Jones Lang LaSalle.
Poland, Russia and Romania saw the largest growth of franchising among the migrating retailers.
(Source: Warsaw Business Journal, 9-15 March 2009, ‘CEE attractive for retail’)
Competitive environment
The major players in the market can be found at http://franchiseportal.pl/catalog. |
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Tariffs, regulations and customs
Poland has no specific legislation or regulations relating directly to franchising and therefore the franchise agreement becomes very important in determining the rights and obligations of the franchisor and the franchisee and the relationship between them. With this in mind the franchise agreement will need to be translated and adjusted to take into account Polish law.
An operations manual is an important aspect of the business and should contain a full and comprehensive introduction to the concept and a detailed explanation of the system as a day-to-day reference tool for use by the franchisee and his employees. It should reinforce the terms and conditions of the franchise agreement, provide the franchisees with information about the working methods and practices, and set out the way in which the franchise must be operated.
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Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
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