Discusses opportunities for U.S. franchisers and legal requirements in the market.
The first international franchisors, Sheraton Hotel (currently Sofia Hotel Balkan) and Coca-Cola, appeared in Bulgaria over 50 years ago during the communist era.  While the total number of international and domestic franchise units increased in recent years, the Bulgarian market for international franchises  still offers many opportunities. (www.franchising.bg) Spurred by an increase in disposable income and growth of the middle-class lifestyle, Bulgarians recognize, embrace and want more “western” franchises.
The number of franchise companies in Bulgaria is growing by 15-20 percent on an annual basis. This emerging market is ripe for franchises as Bulgarian consumers seek retailers that can provide a consistent selection of quality products, reasonable prices, and good service.  Bulgarian entrepreneurs are eager to obtain marketing and management expertise. Currently, there are no franchise laws or specific regulations pertaining to this business model and no specific registration or government approval is required to establish a franchise enterprise.

Numerous U.S. fast-food franchises operate in all of Bulgaria’s major cities, dominated by such iconic franchise brands as Domino’s Pizza, KFC, and Burger King, to name a few. Subway for example has 42 restaurants and McDonalds’s has 42 restaurants throughout Bulgaria. By the end of 2018, Domino’s Pizza has 21 total restaurants.  See https://www.dominos.bg/stores; http://mcdonalds.bg/en/map/; https://www.subway.bg/ SS
The best sub-sector prospects for U.S. franchise include the following:
  • senior care and services
  • restaurants
  • coffee shops
  • lodging (hotels, motels, and chalets)
  • laundry and dry-cleaning
  • hotel management
  • real estate brokerage
  • nutrition and supplement industry products, and
  • employment/educational/training services
  • Good franchise opportunities also exist for: convenience stores, ice cream/yogurt stores, hardware stores, marketing/public relations agencies, specialty retail stores, commercial and residential cleaning entities, baked foods, hair/nail care salons, as well as candy and snack establishments.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.