Why is franchise expansion shifting towards Central & Eastern Europe?

Rising costs and saturated demand in Western Europe are pushing international brands to look at markets that still have room to grow. In CEE, one market stands out by every measure that matters to a franchisor: Poland.

According to the Polish Investment and Trade Agency (PAIH), Poland has 37.4 million residents – more than the Czech Republic, Slovakia, Hungary and the Baltic states combined. Its GDP grew 3.6% in 2025, among the fastest rates in the EU, driven primarily by private consumption – the single most important variable for consumer franchising. The European Commission forecasts around 3.5% growth for 2026. Inflation is back near target, nominal wages are growing over 6% a year, and in 2025 Poland crossed the $1 trillion GDP threshold, becoming the 20th-largest economy in the world. sygnały ostrzegawcze, które bardzo często pojawiają się w słabych lub niedojrzałych systemach franczyzowych.

How big is the Polish franchise market?

Poland is the largest and most mature franchise market in CEE. The key numbers, based on recent data:

more than 1,350 active franchise systems,
close to 90,000 franchise outlets,
market value estimated above PLN 85 billion (~EUR 20 billion),
estimated absorption capacity of 1,500-1,700 concepts – the market has not reached saturation.

The categories with the strongest pull for international concepts currently include food service (the largest franchise sector by number of brands), convenience retail, health and beauty, fitness, education and specialist services.

Where is the opportunity for foreign brands?

Roughly 80% of franchise systems operating in Poland are domestic brands. In mature Western European markets, foreign concepts typically hold a far larger share.

This is the key insight for an international franchisor. Polish consumers are used to franchising, the supporting infrastructure (locations, financing, candidates, advisors) is well developed, and yet foreign brands have not filled the space the way they have in Germany, France or the UK. The gap is where new entrants win – provided they enter properly.

Which market entry model works best in Poland?

There is no single right answer – but there is a right answer for each brand. Five models are used in practice:

Master franchise – fastest scaling with lowest capital exposure; success depends almost entirely on partner selection,
Area development – more control, suits brands with strong operating playbooks,
Joint venture – shared capital and control; works when local know-how is critical,
Company-owned entry – full control, highest cost; often used to prove the model before franchising,
Hybrid – company-owned flagships plus franchise scaling; increasingly the default for food service brands.

One legal note: Poland has no dedicated franchise statute. Agreements are governed by the general freedom-of-contract principle of the Civil Code, which gives franchisors flexibility but places the full weight on contract quality and partner due diligence.

What mistakes do foreign brands make most often?

After years of building and advising franchise networks in Poland, we see the same errors repeat:

copying the Western model one-to-one instead of localizing offer and pricing,
choosing a master franchisee for enthusiasm and capital rather than operational competence,
building financial assumptions on Western unit economics,
underestimating domestic competitors, which in Poland are professional, fast and well-capitalized.

Each of these is avoidable – with local data and a properly run partner recruitment process. None of them is a reason to skip the market.

Can Poland serve as a gateway to the wider CEE region?

Yes – and this is the strongest strategic argument. A brand that proves its concept in Poland gains scale (37.4 million consumers), a supply and logistics base in the geographic centre of the region, and a reference market that de-risks subsequent entries into the Czech Republic, Slovakia, the Baltics, Hungary and Romania.

International capital already treats Poland this way: PAIH (Polish Investment and Trade Agency) ranks it first in CEE for greenfield investment projects, and total FDI stock reached PLN 1.4 trillion in 2024. Enter the region through its largest market first – the sequencing matters.

What does this mean for your brand?

If your concept works in a competitive Western market, Poland deserves a place on your expansion shortlist – probably ahead of smaller CEE markets. The market is large, growing and franchise-literate, and the foreign-brand gap is real.

But the entry has to be prepared: a market analysis before commitments, an entry model matched to your capital and category, and a rigorously verified local partner. The brands that fail in Poland almost always skip one of these three steps.

We are currently preparing Poland as the Gateway to Central & Eastern Europe – Franchise Expansion Report 2027, a full market entry report for international franchisors. If you want the data before your competitors have it, or an honest first assessment of your concept’s fit for Poland – contact us.

Expansion of franchise systems towards Poland and further into CEE