Services

 

 

In this section, we must point out the development of large real estate franchises. After the impressive growth experienced in the real estate sector in Bulgaria in recent years, now we can consider it mature and more structured, the franchise remains an option increasingly used. Already in 2005 registered some 9,000 real estate agencies in the country, which accounted for 38% of total transactions. Bulgaria is among the countries with the highest percentage of home ownership, more than 90%, and property prices are still among the lowest in Europe. However, after leading the rankings with the highest rises in house prices, the residential market begins to show signs of saturation, especially on the coast.

Among the foreign chains that use the franchise system, we can highlight a Re / Max, ERA and Century 21 Real Estate.

 

Re / Max (www.remax.bg) ¸ American origin franchise, came in Bulgaria in 2006 and has since opened a total of 37 offices throughout the country. The entry fee for this franchise is between 7,000 and 20,000 Euros, and the royalty is 6% of monthly billing.

Century 21 (www.century21.bg), also American, opened its first office in Bulgaria in the same year, Re / Max: 2006 and now operates a total of 7 agencies, 3 of them in Sofia. The chain is one of Century 21 brands Realogy Corporation (www.realogy.com) as well as ERA Real Estate. Realogy also wants to enter through another of its franchises, Coldwell Banker Real Estate, although not currently has offices in Bulgaria.

ERA Real Estate (www.erabulgaria.com) is as we have seen another of the concepts of franchise Realogy Corporation, and began operations in 2006. It has 16 offices in the country.

Spanish franchise chain Alfa Realty (www.alfainmo.com) , also has offices in Sofia: http://www.alfabulgaria.com

Among the Bulgarian franchise chains the most important are Foros and Address.

Address (www.address.bg) is the largest real estate group and it is part of Bulgarian Capital AG, which also offers financial services and real estate at a high level. It opened its first office in Varna in 1993. It has a network of own close to 60, and reached the 19 franchises. Its entrance fee is between 5,000 and 25,000 Euros, depending on the region. The royalty is 10% of the monthly billing.

Foros (www.foros.bg) , also founded in 1993, launched its franchise program, which was setted up by Lloyd Tarbutton, president of the International Franchise Association since 2003, in July 2008 by signing two contracts: one in Plovdiv and another in Stara Zagora. Their target is to get contracts in 25 other cities in the short term.

It deserves a special mention the first networks of Bulgarian franchises as Polycontact (www.polycontact.com). Polycontact offers student exchanges and training programs abroad (in the rest of Europe and United States), real estate services and intermediation for the purchase of land of all kinds, legal translations, and even human resources consultancy. His real estate web is http://bg-realestate.com/Web , mainly working on demand in this sector.

Another sector that has experienced a great development has been the hotel.

 

Sheraton (www.starwoodhotels.com/sheraton /index.html ) was one of the first franchises in Bulgaria in the seventies, opening a hotel in downtown Sofia. Radisson (www.sofia.radissonsas.com) is another well-known franchise in the country, with another hotel in the capital.

More recently, the British low cost hotel chain Easy Hotel (www.easyhotel.com) has shown interest in Bulgaria and its first hotel, with an investment of approximately 1.5 million Euros, and it should be opened by 2009. Easy Hotel plans to open two more in Sofia in the next 5 years.

Holiday Inn (www.holidayinn.com) also has a hotel in Sofia.

 

The two main car hire chains are Hertz (www.hertz.bg) and Avis (www.avis.bg), are also in Bulgaria. The franchise Hertz is managed by Autotechnica (www.autotechnica.bg), a 99.6% owned by the Greek Autohellas since August 2003. Autotechnica is also the exclusive importer of SEAT. Hertz has a fleet of 1,300 vehicles, 3 offices in Sofia (one of them at the airport), another one in Sunny Beach and at the airports of Varna and Burgas, the two major coastal cities. Avis’s license (not a franchise) is owned by Bulvari Rent a Car Ltd. Bulvari has an office in the airports of Sofia, Burgas and Varna, another in Sofia, one in Sunny Beach, and finally in Bansko. In this sector, also Sixt Rent a car (http://www.sixt.com/main/car-rental/Bulgaria/) offers its services in 10 offices throughout the country.

Also the petrol stations are beginning to appreciate the advantages of the franchise model. The market leader is Lukoil (Russia), with a market share estimated at 20%, followed by Petrol (Bulgaria) at 16% and Shell (Anglo-Dutch) and OMV (Austria), with figures close.

Petrol, which in 2008 sold 75 gas stations to Lukoil (www.lukoil.bg), said in July 2008 its plans to sell 105 of its less profitable stations and then welcoming them back into their network as franchises. Moreover, Petrol is negotiating to open 20 new petrol stations as franchises. It currently operates about 470 stations. Rompetrol Bulgaria (www.rompetrol.bg owned by the Dutch control Rompe Group NV) opened its first office in 2006 and also used the franchise system, with a network of 15 establishments owned and 35 franchises.

Regarding Human Resources sector, the Austrian company Hill Inter-national is present in Bulgaria has since 1991.

Regus (www.regus.com/locations/BG/Sofia ), a company that offers office, has a building in Sofia.

 

In the field of Human Resources we can mention Hill (www.hill.bg), one of first franchises in Bulgaria, and Manpower (www.manpower.bg) with 4 offices in the country (2 Sofia, 1 in Burgas and Varna). In this field also Polycontact could be included.

 

In the Fitness field, the famous chain of gyms for women franchise, Curves (www.curves.com), began in July 2008 to look for partners in Bulgaria to start its activities.

In 2006, the franchise of recycling printer cartridges Australian Cartridge World launched its activities in Bulgaria with a shop in Varna. It has since opened two stores, one in Sofia and one in Shumen. The activity in Bulgaria is monitored from the office of Greece.

In another area, we can forget is the Spanish dry cleaning franchise PRESSTO (www.pressto.com), which signed a Master Franchise with a Bulgarian partner and they already own two locations in Sofia, the first of which opened in 2002. Continuing with Spanish franchise chain of hair salons Aldany Framework (www.marcoaldany.com) also plans to start its activity in Bulgaria.

These are the major chains and franchises in Bulgaria, the most active.