Franchising is gaining momentum in Serbia, with approximately 220 franchise brands employing over 35,000 individuals, according to unofficial estimates. The majority operate in the service sector, although various other industries are also represented.
Entrepreneurs entering the franchise system acknowledge the initial requirement for a larger investment but believe it offers distinct advantages over independent startups. Nemanja Nikodijević, director of “Depil Concept,” emphasizes the resilience demonstrated by established brands during challenging times like the COVID-19 crisis, which provides a safety net for franchisees.
Burger King, one of the world’s first and most successful franchises, opened in Miami in 1961 and remains influential in shaping the franchising landscape, particularly in the United States. Boris Popovski from the US Embassy’s trade department highlights franchising’s substantial economic impact, citing a total turnover of approximately $850 billion and the creation of 800,000 jobs in 2023 alone.
While the number of domestic franchise systems has increased by 40% compared to the previous year, foreign brands still dominate the Serbian market, accounting for around 80% of franchises. Education franchises lead among domestic brands, followed by clothing, food, and pet cosmetics.
Miroslav Samardžić, director of the “School of Quick Reading and Wise Learning” franchise system, notes the rapid expansion of their network to cover all former Yugoslav republics, with 40 franchise centers established in just over a year.
Ivan Stanimirović, co-owner of the Kliker IT Center for Children franchise, emphasizes the holistic growth that occurs as franchises expand, encompassing both material assets and ideas.
Greater support for franchise business development, including financing models recognized by Serbian banks, could foster more substantial growth. Marica Vidanović, head of the Center for North, Central, and South America and Australia at PKS, underscores the need for professional assistance in establishing business foundations and drafting quality contracts, given the lack of a franchising law and skilled personnel.
Efforts are underway to establish a domestic franchising association through collaboration with the Chamber of Commerce and membership in the European Association for Franchise Sales, aiming to provide valuable support to Serbian entrepreneurs navigating the franchise landscape.
