Currently, over 250 franchised brands operate in Serbia, employing more than 30,000 workers and boasting over 4,500 sales locations. Interest from Serbian companies has been increasing year by year, as evidenced by the growing number of local franchised brands, which now account for about 35% of the market. The remaining 65% is occupied by foreign brands from the region, the EU, the USA, and Asia.
The Chamber of Commerce of Serbia (PKS) and the Serbian Franchise Association (SFA) have committed to enhancing their collaborative efforts aimed at supporting and certifying franchising as an advanced business model. This was confirmed by a Memorandum of Cooperation signed today by Mihailo Vesović, Director of the Sector for Strategic Analysis, Services, and Internationalization at PKS, and Tatjana Petković, Chair of the SFA and holder of the master license for the Helen Doron English brand in Serbia.
Vesović noted that PKS views franchising as a way to enhance entrepreneurship, recognizing its significance first in the USA and subsequently in the European Union. He announced plans to promote successful examples of franchising in the coming period, as this model can provide a safer, less risky path for many entrepreneurs. He emphasized that adopting foreign practices will improve service levels for consumers and in the overall business landscape.
Franchising is a recognizable business format, and the SFA aims to further certify this model, promote it, and establish legal regulations, according to Petković. Marica Vidanović, Head of the Franchising Center at PKS, stated that the goal is to expand the franchising concept and create the conditions for a national strategy and legal framework. She also announced a regional conference in Niš focused on educating youth about this business model.
The association aims to increase visibility and provide more information about franchising, highlighted Nemanja Nikodijević, a member of the SFA board and holder of the master license for DEPIL CONCEPT.
Following the signing of the Memorandum of Understanding, the first assembly meeting of the SFA took place, gathering national and international franchise concepts operating in Serbia.
The majority of franchised brands in Serbia are found in the service sector (fast food restaurants, traditional restaurants, real estate, hospitality, tourism, etc.) as well as in retail, particularly in clothing, consumer goods, and cosmetics and jewelry sales. A significant boom has been observed in the education sector, particularly in mental arithmetic, child logic systems, and IT skills development.
In recent years, PKS has acknowledged the importance of developing franchising and recognized the crucial role this business model can play in promoting entrepreneurship. Accordingly, it has conducted a wide range of educational and promotional activities, establishing itself as a central hub for franchising topics at both the regional and European levels.
Franchising is characterized by the use of a proven business model by another entity. It is a distribution method where the owner of a product or service (the franchisor) grants rights to a franchisee to operate in the market under their recognizable brand name, distributing their products or services. The franchisee benefits from the franchisor’s experience, training, and profitability guidelines.
Experience shows that entering entrepreneurship through franchising is a safer way to start a business, offering a tested, profitable system along with knowledge and skills. Franchising plays a significant role in every country, facilitating entrepreneurship development, accelerating it, and making it more secure.
This business model generates around 5.8% of global GDP and is present with over 40,000 franchises at the European level. Statistics estimate that a new franchise opens somewhere in the world every eight minutes. In the USA, franchising constitutes about 50% of the market economy across more than 160 industry sectors.
