Opening a franchise business in Poland

Opening a Franchise Business in Poland

A franchise is a way of conducting business according to the terms and rules provided by the brand franchisor. This brand offers its idea, proven development methods, vision, and its marketing materials. In fact, by purchasing a franchise, you are buying an already established business that will bring you income and increase the brand's presence in the market, thereby increasing its recognition and overall profitability.

More often than not, when purchasing a franchise in Poland, you need to make an initial payment, and later pay a monthly fee or commission from turnovers. It is worth noting that renting premises and repairs will also fall on the shoulders of the franchisee (the one buying the franchise). Therefore, before signing a contract and buying this type of business, it is necessary to carefully examine the proposed option and weigh all the pros and cons.

Advantages of Franchise in Poland:

• No need to create a business plan (the franchisor provides it ready-made);
• Free training. Often, the franchisor conducts free training for the new partner and their employees;
• If the business is product-based, there is no need to search for suppliers, as the franchisor already works with approved, verified contractors, and the goods will be cheaper, as they are purchased wholesale;
• Less expenditure on advertising and promoting the business;
• In this type of business, there is a lower risk of failure, as franchises are often purchased from established businesses with consumer loyalty.

Disadvantages of Franchise:

• Limited opportunities and subordination to the parent company - all this is clearly stipulated in the contract;
• Signing a contract for a specific period. There is no guarantee that the franchise will be liked and justify itself for the franchisee, but they will have to continue doing business according to the contract. There is no guarantee that the franchisor will extend the contract term for the franchisee if everything is liked and profitable. The business still does not become fully yours.
• Penalty sanctions or sales plans from the franchisor;
• If the brand incurs losses, it affects every partner.

Buying a Franchise in Poland

First of all, you need to understand how much money this business will require right from the start - whether premises are necessary, what the initial payment is. At a minimum, you will need to pay an entrance fee, then a monthly payment, including current payments (utilities, salaries to employees, etc.), a contribution to the company's marketing fund (all franchisors try to promote their brand as well as possible, understanding that their name brings them income).

Also, a franchise may entail the purchase of equipment, additional advertising, employee salaries, payment of all taxes, social insurance.

Despite all the intricacies and pitfalls, it is precisely a franchise business that can be used as a start for your business in a new country. After all, a number of advantages, which we described above, including knowledge and experience, will be useful in any business.