FRANCHISE-OPPORTUNITIES IN HUNGARY

The Hungarian-based DAKEXPO Kft. announces the organisation of the First Hungarian BuyBrand Show and International Franchise Expo at the Budapest University of Economic Sciences October 14-16, 2004. The aim of the event is to introduce successful foreign and Hungarian franchise networks to local entrepreneurs, to help companies find new business partners.

"The exhibition will follow the well tried tradition of foreign Franchise Expos," - says dr. Katalin Mandel, Managing Director of DAKEXPO. "Exhibitors can introduce their franchise system to local entrepreneurs and offer them the possibility of buying franchise rights, business methods and brands. Hungarian entrepreneurs can start a successful business activity with favourable financial conditions while keeping their independence."

There are already several successful franchise networks operating in Hungary, e.g. gas station networks or cell phone brand shops. However, prosperous franchise-networks can be operated not only by large companies, but by small or medium size enterprises as well: several good examples can be found in North America or Europe.

The success of existing franchise networks demonstrates that the business model built on brand buying can offer a custom made, reasonable form of cooperation in almost all market segments. To build and extend a franchise network is one of the most effective methods of increasing market share, attracting investors or dividing costs of investment.

Why Hungary can offer a great opportunity in this area: Hungary has just joined the European Union, the consolidation of its legal system is in process and the country is in the most prosperous region of Europe. Numerous tenders and state financed projects help the SME sector that can be the main source of partners for franchise-networks. Hungary offers an advantageous business environment for launching successful businesses.

Among others, the famous American Subway Sandwiches - already operating in Hungary - will be present at the First Hungarian BuyBrand Show. "Our products and sales methods are proven. In addition to providing a stable workforce, expertise and financial sources our Hungarian partners bring their own style and ideas which strengthens the Subway Brand. The result of our common effort is common market growth" - says John Holm, Hungary's first Subway Franchisee and Director of Székelyföld Kft.

Another exhibitor is Otthon Centrum Rt., a Hungarian real estate company. "We consider franchising to be an effective tool to increase market share, where the success of a brand is supported by a reasonable capital structure and the independence of our partner." - said Sándor Révész, Deputy General Manager. "The well chosen measures to increase market share determine the competitiveness of a service or a product. I am convinced that buying a brand is a great way to build a significant business in Hungary as well."

In addition to these companies, several foreign and Hungarian companies representing fast food, real estate, dry cleaning, retail and the cosmetics sector will participate at the exhibition. Two- thirds of the exhibitors are expected to be foreign companies.

Similar to other foreign expos, the BuyBrand Show in October will attract current franchise owners who are looking to expand in Hungary. It will also attract entrepreneurs interested in making a reasonable investment to start a new business based on established, professional principles.

"The main attraction is the proven success of a brand" - says Dennis Klein, Canadian businessman and co-owner of DAKEXPO. "Those who buy a successful brand can be assured of a solid business system with a proven track record. This allows the entrepreneur to hit the ground running."

The organisers of the Franchise Expo have extensive operating expertise in executing business partner events. Dr. Katalin Mandel is the founder and organiser of a leading business club successfully operating in Hungary for 10 years. Dennis Klein is the founder and CEO of Denninghouse Inc., one of North America's most successful franchise organisations. Denninghouse operates the Buck or Two chain of stores which is Canada's leading extreme-price retailer. Dakexpo is a member of the International Franchise Association which has already registered the BuyBrand Show in Hungary.