Prsentation PowerPoint

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Franchise in France ? Global impact ? Export ?
Trends ? Legal Frame ? Support franchise ! ? The
FFF Conclusion
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• What is the economical impact of franchising
  today ?
• In January 2008, the franchise industry was
  representing 7 of the French commerce and
  services turn over
• Global turnover developped by the franchisees
  of the networks ca. 45 billions Euros
• Number of franchising networks 1141
• Number of franchisees 46000 total number of
  outlets in the 1141 franchising

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• What is the economical impact of franchising
  today ?
• In March 2007, a survey on the economical
  impact of franchising in France showed that
• - its systems were generating a global turnover
  of 82 billion euros (franchised and firm-owned
  outlets)
• - they employed 495 980 people

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Franchising is present in all economical
sectors Product (Distribution) concepts 49,1
Services concepts 50,2 22,5 of the
concepts are in personnal equipment clothes,
jewellery, shoes 19,2 of the concepts are in
home and leisure equipment furniture, perfume,
toys, flowers... 8,1 are in food retail
50,2 are in services hotels (2,1) ,
restaurants (9,5), hair and beauty salons (9,7),
other personal services (10,4) car services
(3,3), real estate (4,1), BtoB (6,4), training
(1,4), cleaning (0,9) and building (2)
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Franchising in France a thriving export
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• 88,5 of the concepts operating in France are
  home grown.
• 24,5 of them are exporting their concept in
  more than 10,000 outlets around the world.
• 280 French brands are expanding abroad through
  franchising...

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A sample of those Jeff de Bruges Martial in
the Middle East La Compagnie des Petits In
Tunisia Lollipops in Japon, in the Middle East,
in Corea, in Italy The Accor group, Orchestra,
Celio, Dessange, Yves Rocher and Fauchon in the
whole world La Boucherie Restaurants in Russia
and in Thailand La Brioche Dorée in Syria (and
the rest of the world) Maisons Mikit in
Romania Beauty Success in Spain Guy Hoquet in
Morocco Monceau Fleurs in Japan and the UK
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Cuisine Plus in Spain Aviva and Quick in
Algeria Feu Vert in Poland Speedy in Turkey 5 à
Sec Paul in the whole world MobilAffiche in 50
countries And many more !
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• Foreign concepts in France
• They represent 11,5 of the systems.
• Most of them are from neighbouring Italy, Spain
  and Belgium, with a strong (and culturally
  significant) North American representation.
• Most of them deal with French master
  franchisees and in some occasions launch local
  branches.
• Amongst them Sign A Rama, Ka International,
  KFC, Dominos Pizza, Pizza Hut, Comfort
  Quality, Cartridge World, Cash Converters, Engel
  Völkers

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• Trends of franchising in France
• In the Fifties, France had a great wealth of
  small and unorganized shops which could not
  provide an increasingly urbanized population with
  what they really wanted
• French commerce modernized itself through
  supermarkets, malls and the development of
  brands.
• Franchising, with its sophisticated management
  and requirements, met with an increasingly
  sophisticated customer.
• Franchising has modernized old trades, such as
  hotels, hair salon, real estate agencies.
• Franchising has created new markets and new
  services, and is now a essential component of the
  reshaping of city centres.

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Why does it develop so well ? In the last 5
years, services have gained field. They now
represent more than half of the franchising
force in France. New concepts are being
boosted by new consuming patterns, the
denationalization of services, new building
regulations, governmental incentives such as
Chèques services, and last but not least the
needs of sustainable development and urban
reshaping
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• Franchising in France today what makes a good
  network ?
• A strict definition brand know how
  assistance.
• When maturity is reached, a long experience
  which benefits the concept balanced duties and
  rights in an equal partnership between franchisor
  and franchisee increasingly effective tools of
  network management.

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Franchising in France today what makes a good
network ? the nature of the
franchisor-franchisee relation in the frame of
the network a long term strategy a
relevant answer to the consumer expectations.
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Franchising in France today some new
challenges franchise is becoming a tool for
the reshaping of city centres, franchise is
chosen by an increasing number of young
entrepreneurs to create businesses and
employment, franchise is part of the
internationalization strategy of French brands,
systems and businesses.
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• Franchising in France today Some
  difficulties remain
• - how to find new outlets in a tense real estate
  market, with rocketing rental costs,
• - how to select good franchisees,
• - how to deal with exclusivities,
• - how to terminate contracts
• - and how to understand the French customer of
  the XXIth century, and anticipate his wishes and
  his needs !

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• What is the legal frame of franchising in France
  and in Europe ?
• In France, there are no specific law for
  franchising. The franchisors and franchisees
  abide to
• . the European Code of Ethics,
• . the Disclosure law (so called Loi Doubin),
• . the jurisprudence,
• . the 1999 European Block Exemption on vertical
  restrains, to be renagociated.

Les enseignes
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• Support franchising !
• The main banking firms in France support
  franchising through
• - specific programmes for franchisors and
  franchisees alike,
• - training on franchising for their local
  agents,
• - support of the FFFs research and
  educational programme,
• - support of the FFFs public events.

Les enseignes
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• Explaining franchising !
• Two dedicated magazines launched in the 80 are
  still popularizing franchising (LOfficiel de la
  Franchise, Franchise Magazine).
• Since the beginning of the 00, the internet
  provides a wide choice of specialized portals,
  amongst which Franchise Expo Online, a portal for
  franchise systems and entrepreneurs.

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• Showcasing franchise !
• France has two meeting points for franchisors
  and prospective franchisees
• - in March, Franchise Expo Paris, one of the
  biggest franchise shows in the world (4 days,
  more than 450 exhibitors, 30,000 visitors)
• - in November, Top Franchise Méditerranée, its
  Marseilles conterpart.
• Franchise Expo Paris is owned by the FFF both
  are endorsed by the federation.

Les enseignes
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• The French Franchise Federation
• who are we, what do we do
• The Fédération française de la franchise is an
  association loi 1901, a non-profit organization
  created in 1971 by pioneering franchisors.
• Its members
• 123 systems, from all sectors and of all
  sizes. They represent 35 of the French
  franchisees and more than 40 of the global
  franchise turnover
• 36 experts (legal issues, management,
  marketing, PR)
• Its structure
• A board of directors (16 franchisors and 2
  franchisees). A staff of 8 members

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• The French Franchise Federation
• who are we, what do we do
• The FFF is a label of quality our members
  must apply the Code of ethics
• The FFF provides information and training for
  franchisors, franchisees and investors, actual
  and prospective. In Sept. 2008 an Académie de la
  franchise for network executives will be
  launched.
• The FFF provides counselling and specific
  information for its members
• Throughout the mass media, it helps advertizing
  franchise as the best and safest way to launch
  ones business.

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• The French Franchise Federation
• who are we, what do we do
• The FFF monitors the evolution of franchising
  in France through
• scientific research,
• educational programs in Universities and
  Business Schools.
• The FFF is the voice of franchising it takes
  part in governmental commissions and lawmaking
  processes. Together with local representatives
  (local administration, Chambers of commerce), it
  promotes franchising in local development.

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• The French Franchise Federation
• who are we, what do we do
• The FFF works together with
• - The Ministère de léconomie et des finances,
• The Medef, Frances foremost business union,-
  The APCE, Frances leading agency for the SME-
  The main banking firms Banque populaire, Crédit
  agricole, LCL, Crédit du Nord, HSBC, Caisse
  dépargne, BNP Paribas, Société générale.-
  Ubifrance and the French Missions économiques
  abroad- and many institutions in the fields of
  economics, education and statistics.

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The French Franchise Federation who are we,
what do we do One of the oldest franchise
federation in the world, the FFF helped launch
the EFF (of which it is a member) and the WFC. It
pioneered the first Code of Ethics in Europe.
The FFF is willing to share its best practice
with other franchise associations, as it did with
the Franchise association of Lebanon.
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• Conclusion
• Franchising is a strong economical development
  vector in France and abroad
• Based on the synergy of the franchisors and
  franchisees competences, dynamism and values
• supported throughout by the FFF and its many
  partners

Les enseignes
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• Conclusion
• Which has reached a high degree of
  professionalism
• And which offers a bright future for those
  who accept its rules.

Les enseignes
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On behalf of the Fédération française de la
franchise, Many thanks for your kind attention
!
Les enseignes