Franchising in Serbia: Why Global Brands and Investors Are Entering a Rapidly Growing Market

Franchising in Serbia is experiencing significant growth, drawing attention from international brands and foreign investors alike. Over the past several years, Serbia has evolved into an increasingly attractive destination for franchise expansion due to its strategic location, favorable tax environment, competitive labor costs, and under-saturated market conditions.

This article explores why franchising has expanded so rapidly in Serbia, which industries are entering the market, what investors must understand before expanding, and how businesses can successfully establish and scale franchise operations in the country. The insights presented are based on direct industry participation, client experience, and on-the-ground observations from franchise and investment events held in Belgrade.

Serbia currently hosts over 250 franchise brands operating across approximately 4,500 locations nationwide. The franchise sector employs more than 30,000 people, contributing meaningfully to employment, skills development, and long-term career growth within the Serbian economy.

While franchising offers strong career pathways for employees, this analysis is focused on investors and business owners seeking scalable, proven business models within an emerging European market.

Over the past five to six years, Serbia has recorded an estimated 40% year-over-year growth in franchise activity, signaling not only expansion but sustained market maturity.

The Serbian Franchise Association recently joined the European Franchise Federation (EFF). While this development does not indicate Serbia’s accession to the European Union, it is strategically significant for investors.

The EFF membership establishes:

• A standardized code of conduct

• Harmonized franchise operational standards

• Alignment with European best practices

For franchise owners, this ensures brand consistency, service quality, and operational predictability across jurisdictions, enhancing credibility and long-term scalability.

Franchise growth in Serbia spans multiple sectors, reflecting both local demand and international trends.

Food and Beverage

Quick-service restaurants, cafés, and casual dining franchises continue to expand rapidly, benefiting from urban growth and consumer brand recognition.

Retail, Fashion, and Cosmetics

While some luxury brands have struggled due to local purchasing behavior, mid-market and value-driven brands have found success when properly localized.

Beauty and Wellness

Fitness studios, wellness clinics, salons, and personal care franchises are gaining traction, particularly in Belgrade and Novi Sad.

Education and Training

High demand exists for:

• English language schools

• Child learning centers

• IT and coding academies

These sectors benefit from Serbia’s young population and growing focus on international competitiveness.

Service-Based Franchises

Consulting, cleaning services, real estate support, and property management franchises are expanding due to gaps in service quality and rising foreign demand.

Logistics and Distribution

Serbia’s geographic position between Eastern and Western Europe has made it a strategic hub for logistics franchises, especially for companies relocating from higher-tax jurisdictions.

A key insight from industry panels is that success in one country does not guarantee success in Serbia. Consumer behavior, purchasing priorities, and price sensitivity differ significantly from Western European markets.

Franchises that adapt pricing, offerings, and service delivery to local conditions tend to succeed, while those that rely solely on brand prestige often struggle.

1. Under-Saturated Market Conditions

Unlike heavily franchised Western markets, Serbia offers substantial room for expansion, prime locations, and first-mover advantages across multiple sectors.

2. Strategic Geographic Location

Serbia connects:

• Western and Eastern Europe

• The Danube River trade corridor

• EU and non-EU markets

This positioning supports both consumer-facing franchises and regional operational hubs.

3. Competitive Tax Environment

• Corporate income tax: 15%, among the lowest in Europe

• Attractive incentives for foreign investors

• Flexible structuring options for international businesses

4. Non-EU Regulatory Flexibility

Operating outside the EU allows businesses to avoid certain regulatory burdens while still accessing European markets through trade agreements.

5. Extensive Free Trade Agreements

Serbia maintains agreements with:

• The European Union

• CEFTA countries

• Turkey

• United Kingdom

• China

• Russia

• EFTA states

Through these treaties, businesses gain potential access to 2.4–2.8 billion consumers.

• Belgrade – Capital city, largest population, strongest consumer base

• Novi Sad – Strategic access to Croatia and Hungary

• Subotica – Border access to the EU

• Kragujevac – Industrial and automotive hub

• Niš – Southern Serbia gateway to Bulgaria and North Macedonia

Each location offers distinct advantages depending on industry and expansion strategy.

Local Operational Expertise

Strong local management is critical. Franchises must understand Serbian labor laws, consumer expectations, and regulatory compliance.

Currency Structure

Serbia operates using the Serbian Dinar (RSD). While pricing may be quoted in euros, official invoicing must be issued in dinars.

SEPA Integration

Serbia is scheduled to join the SEPA system in early 2026, significantly improving cross-border payment speed and cost efficiency for international franchises.

• Respect for structured systems and consistent quality

• Growing middle class in urban centers

• Strong entrepreneurial culture among younger generations

• Low density of direct competition in many franchise categories

These factors allow franchises to establish brand dominance faster than in over-crowded Western markets.

Relocation Serbia provides end-to-end support for foreign franchise investors, including:

• Company formation (DOO setup)

• Residency and immigration for owners and staff

• Corporate banking

• Licensing and regulatory compliance

• Tax structuring and incentive analysis

• Workforce and operational setup

This ensures franchise operations are compliant, scalable, and optimized from day one.

Serbia stands out as one of Europe’s most promising emerging franchise markets. Its combination of market openness, strategic location, tax efficiency, and operational flexibility creates compelling opportunities for investors seeking rapid scalability and strong return on investment.

For businesses looking to expand internationally while avoiding over-saturated markets, Serbia offers a rare balance of growth potential and regulatory clarity.

If you are considering franchising in Serbia or expanding an existing brand into this market, booking a paid consultation with Relocation Serbia is the most efficient first step.