New rules on franchise in Romania: better protection for franchisees, 1-year concept-testing period for franchisors

The Romanian government has adopted an ordinance that changes rules regarding franchises, aiming to make the market more transparent through the creation of a National Franchise Registry. Franchise owners are now required to test their concept before selling it through the franchise system.

This is the first change of the franchise regulation in Romania in the last two decades.

The new rules demand all companies aiming to expand through franchise to create “testing-unit” in order to test their concept during one year before selling the franchise.

Moreover, a National Franchise Registry will bring more transparency as franchise owners are pushed to register their business information.

“Clarification of the franchise regime protects both franchisees and franchisors. This increases the chances for the two partners to capitalize greatly on the opportunity to develop a franchise business,” said Stefan Radu Oprea, minister of Business, Commerce and Entrepreneurship, in a press release.

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The Romanian franchise market is expanding rapidly as many successful businesses are trying to expand faster or capitalize their ideas through a franchise.