The activities undertaken by the Chamber of Commerce and Industry of Serbia to implement a viable franchising model in Serbia provide a key impetus to faster economic development of Serbian economy and its inclusion in global and international integration trends. Through its active awareness raising on the benefits and potential of the franchise business model in Serbia and promotion of free entrepreneurship, since 2007 the Franchise Centre of the Chamber of Commerce and Industry of Serbia has taken visible steps to highlight the key role of franchises in the corporate system.
Franchising, as the only form of business activity to emerge unaffected from the global economic crisis, is prevalent in the services sector, and there is virtually no industry where successful implementation of franchising is impossible. The reasons for this are numerous. The franchisee enters the business with a business model with a proven track record of profitability, while the franchisor expands its franchise network and brand recognisability. Franchising could facilitate access to foreign markets for Serbian companies. If the requirement for a valid franchise concept is met, foreign markets will be more welcoming to domestic brands, while domestic companies will have easier access to an expanded distribution network for their products and services. Popularising the franchise model will be crucial for reducing unemployment and generating employment across all levels in Serbia and for promoting safer entrepreneurship in the country.
A key characteristic of franchising is the adoption of a proven profitable business model of another economic entity. It is a distribution method wherein the owner of a product or service (the franchisor) grants and sells to the franchisee the right to participate in the market under its recognisable name/brand and to distribute its products and services: to use its business name and trademark, know-how, business method and system, to benefit from its market experience, to undergo training and to receive profitability advice.