Introduction
FRANCHISING IN THE CZECH REPUBLIC
Franchising has finally become a well-known, successful, and popular concept in the Czech market and it is poised for further growth.
After a rather modest start in the 1990s, franchising has seen a rapid growth, especially after the Czech Republic’s accession to the European Union in 2004. Czechs have seen the success of foreign franchising systems and are now founding domestic franchising concepts and are expanding abroad.
There are currently about two hundred franchised brands on the Czech market. The total number of licensee holders increased by 1/3 over the last three years. Approximately 40% of the franchised brands are of Czech origin. Most of these businesses operate in the hospitality, hotel, and retail markets. Many foreign franchise networks operating in Europe are still missing in the Czech Republic and are expected to enter the market soon. There is still a lack of U.S. firms present, so U.S. franchisers should not miss the opportunity to enter the booming Czech market. Another key point for U.S. franchisers is that their licenses are comparatively cheaper, given the weakness of the dollar. For this reason, Czech investors may find investment in this sector especially profitable at the moment.
Some american franchise brands in Czech Republic
While franchising has proved successful in the Czech market, it is still very much an untapped market, with abundant opportunities across a wide spectrum of concepts. Some industry sectors are undergoing restructuring and consolidation with the best chances for franchised brands that prove most effective.
Thanks to its advantageous geographic position and economic development, the Czech Republic is an ideal starting point for expanding a franchise into Central and Eastern Europe.
From a legal perspective, the Czech legal system is liberal and places no barriers for the entrance and operation of a franchise.
Support for American brands entering the Czech Republic
Foreign franchises seeking entry to the Czech Republic will find good conditions here. The franchise may rely on suppliers’ offer within the Franchise Club who understand their needs and have the necessary know-how. Here, the U.S. franchisors will find franchise consultancy, legal advice, advice of copyright protection, localization of operating manuals, localization of graphic manuals, financial and insurance services, marketing research, communication (advertising) and PR agencies, advertisement production and placement, advertisement in the point of sale (POS), training agencies, and real estate consulting for retail or furnishing and offices.
Best Sectors in the Czech Republic for Franchising
Healthy lifestyle and entertainment restaurants
Fast- food restraurants,
Home delivery food
Gourmet food
Specialty coffee shops
Genuine food restaurants,
Real estate agencies,
Centers for education and language teaching,
Automotive services
Centers for care and health care for children and the elderly,
Financial and insurance services,
Consumer & Personal services
Home based businesses
Education and language teaching
Why Enter the Czech Market Now?
Young business oriented population
Companies and individuals seeking proven concepts
Increased interest in owning a business
Locals trying new product/service
U.S. companies and their products are well received
Tourists finding familiar brands
Regional business centre and ideal location for franchise launch to EU and CEE region It is precisely in difficult times that buyers are looking for new opportunities. Educated young – to mid age generation
Foreign Direct Investment is a major driver of economic growth and exports U.S. is the fifth largest foreign investor
Your competitors are out in the market vigorously promoting their products and services in an effort to hold on to present customers and win new ones away from other companies.
More about Czech Market in Market Research Reports on http://www.buyusa.gov/czechrepublic/en/44.html
Last year of FrAMchise Day
The event presented more than three dozen successful American franchise brands and original business concepts.
During the first year of FrAMchise Day 2009, trade shows and two conference programs presented 34 American franchise brands, 24 of which offered a master-franchise. This was the first time to see so many franchise brands from overseas.
Besides these, there were also service suppliers supporting franchising entrepreneurship (franchise advisors, who are lawyers specialized in franchising or trade law bank, insurance company, marketing research, and the production of advertising technology).
FrAMchise Day 2009 offered two concurrent Conference programs with 25 presentations simultaneously translated in Czech and English. Each presentation should focus on certain brands or broader topics devoted to key aspects of franchising and marketing. For example, Czechs look on American brands, current trends in food of the Czech population, and also the status of shopping centers. During the day, there was a possibility to visit the trade show, speak with representatives of individual companies at booths, and take away marketing materials.
During breaks, gastronomic and food brands presented their products at separated stalls. These breaks gave people the opportunity to make new contacts and to network.
FrAMchise Day 2010 peaked with the reception arranged at the exquisite U.S. Ambassador’s Residence and was opened by American gospels. Reception and breaks during the conference program created sufficient “room” for new contacts, networking, and mutual meetings.
240 visitors attended FrAMchise Day 2009:
Attendee Profile
| Prospective Franchisee | 68 % |
| Prospective Master Franchisee | 14 % |
| Current Master Franchisee and Franchisor | 6 % |
| Current Master Franchisor | 4 % |
| Current Franchisee | 3 % |
| Others | 5 % |
Interest in
| Franchise/s from one branch | 52 % |
| Franchise/s from more branches | 78 % |
| General information about franchising | 84 % |
See the photo album from the first year of FrAMchise Day with its course and atmosphere.
See Brands 2009 that were presented on FrAMchise Day 2009.
See wwwCatalogue on the internet and also in print.
Significant Czech media outlets paid attention to FrAMchise Day 2009. Review the reports of the Czech television and channel Z1.
The President of the Czech Chamber of Commerce, the President of the American Chamber of Commerce in Czech republic, and the Mayor of the city of Prague supported FrAMchise Day 2009.
The event was also supported by the largest Czech franchise organization bringing together more than 60 members – Franchise Club, a member of IFA.
Useful Information on Czech Republic
Time zone The Czech Republic lies in the GMT +1 time zone, usually referred to as Central European Time (CET). The clocks are changed by one hour creating winter time and summer time (GTM + 2).
Climate Geographically speaking, the Czech Republic is situated in a temperate zone, and there are four seasons of approximately all the same length. Winters are relatively mild (the average January temperature is -2 °C, 28,4 °F) and summers are not too hot (the average July temperature is 20 °C, 68 °F), so you can travel to the Czech Republic at any time without being too concerned about the weather.
Electricity Electricity AC in the Czech Republic is 230 volts. Neither current nor plug sizes are the same around the world. If you discover on arrival that an electrical device has a different plug to those used in this country, adapters are readily available.
Healthcare Private and state healthcare facilities operate in the Czech Republic. The majority of them have agreements with the State Health Insurance Company on the provision and payment of healthcare.
Health insurance Since mid 2004 citizens from the individual EU member states, who travel temporarily to another EU member state and hold a European Health Insurance Card (EHIC), are automatically insured.
Important telephone numbers The most important emergency services have three-digit numbers which you should have with you at all times in case you should need them. These numbers can be called free of charge from mobiles even without a SIM card inserted.
Embassies and consulates You can access assistance in difficult situations from your country's embassy. Embassies are always located in the capital of the Czech Republic, Prague, and a complete list can be found on the Ministry for Foreign Affairs website.
Arriving in the Czech Republic The Czech Republic became a member of the EU in 2004. There are different rules for citizens of other EU member countries than for tourists from other parts of the world. Everyone must carry ID at all times.
Customs quotas and regulations When bringing goods into the Czech Republic there are limits set on certain commodities. If a certain amount is exceeded, duty must be paid, and the importer is required to inform customs of the amount of the commodity he or she is bringing in to the country.
Public holidays Saturdays, Sundays and public holidays mean most banks and offices will be closed. Ordinary shops also close on Sundays and public holidays, while supermarkets and shopping centres often stay open. It's no problem on these days to visit a concert, exhibition, restaurant or bar.
Business hours In small towns most shops are open Mon - Fri, from 8 or 9am until 6pm, and only in the morning on Saturdays. In big cities shops may stay open until 9pm. Only a few small shops have a lunch break, usually between 12 and 1pm.
Language The only official language in the Czech Republic is Czech, which is spoken by 96 % of the population. However, have no fear, as especially in larger cities you can make yourself understood in English relatively easily.
Money The official currency used in the Czech Republic is the Czech crown which has the international abbreviation CZK. The Czech Republic has been a member of the EU since May 1 2004, but will only enter the Euro Zone around 2010.
Tipping Tips aren't usually left by guests on the table. Should you wish to tip staff, add around 10% onto the bill or round it up. It's up to you what sum you tell the waiter you wish to pay when he brings the bill.
Smoking The Czech Republic has adopted a law limiting smoking. One of the main points is a ban on smoking in public places (on platforms, at stops, at the railway station, on public transport and in places of entertainment).
Telephones The international dialing code for the Czech Republic is +420 (or 00 420). When calling from abroad this must be dialed first, followed by the 9-digit number.
Internet The Czech Republic enjoys good internet connections, so you will have few problems getting online. In recent years slow dial-up modems have been replaced by quicker broadband lines and Wi-Fi networks.
Postal services Postal services are officially provided by the Czech Post Office. It has exclusive right to operate the service for post up to 50 g in weight. Should you need to send anything heavier, you can choose from tens of Czech and international couriers operating in the Czech Republic.
