Franchising in Greece represents a new commercial system as it was born at the end of the 80’s, probably in 1988. During those years there were about twenty brands looking for Greek franchising, this number quadrupled at the end of the 90’s, even if their presence in the markets was shy: only 4/5 stores for each brand. Greek franchising world can trust in  the Franchise Association of Greece; it is the result of the efforts of some people who have been looking at franchising as an interesting opportunity to grow and develop since 1996. They noticed the necessity of creating a body to help both franchisors and franchisees, which was able to represent them and, at the same time, to be the very first promoter of franchising development in Greece. At the present time there are more than 644 franchisors working in Greece and year after year chains increase their retails in an exponential way: more than 850 valued openings each year. Most of the brands have their base in the Greek capital, Athens, and a great number is listed at the stock exchange. The prospects of franchising development in Greece are remarkable, also because there are some big franchisors having enough funds to help the potential joiner in starting his business.  
Moreover, there is the chance to get financings for professionals, linked to the activities field. The most interesting fields are those of food and beverage, especially fast food, clothing, leisure (DVD Rental), technological services (telephony service),  personnel training and languages schools.
In Greece there is not a national law to regulate franchising, and rules are laid down by the Ethical Code, the European Code of Ethics for Franchising, created by the European Franchise Federation (EFF) and revised in 1981, when the EC Block Exemption Regulation for franchising agreements came into force. This situation creates a lack of balance: as lots of franchisors are often unable to supply all the needed means to warrant the success of their brands and sometimes it happens that both franchisee and franchisor lack the required experience and the franchisor is unable to provide all the demands of training to carry on the business. This lack deals a strong risk of flop.
Infofranchise is present also in Greece, with its Franchise portal at the link www.infofranchise.gr.There is a great number of exhibitions, events and lectures about franchising in Greece every year; the most important one is the KEM, which takes place in Athens every year. People interested in starting business by choosing franchising surely can’t miss it.

 

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Date: 12/10/2006
Source: Infofranchise

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