Franchising

Introduction Franchising in France Sectors that franchise Export and import

Sectors that Franchise

The French federation of franchising has recently published its 2005 overview of franchising, in which it contacted 407 franchisees and 133 franchisors. Interested readers can contact us directly but in brief, the survey found the sector in good health.

The distribution sector accounts for 55% of all franchises in France, outweighing the service sector which makes up 40%. Services, however, have seen a higher level of growth since the 1990s and in some markets, notably the US, services now make up more than half of all franchised networks. Most recently, a third category of franchising has emerged, that of industrial franchising which involves technology transfers, industrial licensing and engineering. Industrial franchising is particularly orientated towards export markets.

Already one of the largest markets, franchising was given an additional impetus by recent legislation that encouraged franchises in the service sector. The growth of the service sectors reflects changing French consumer habits and household needs.

The activities with the strongest growth are in areas like real estate and services to households such as house cleaning and home care, child-minding and educational gym. Given the levels of investment needed, services can often be more re-active: the Loi Carrez, obliging home sellers to provide termite and lead testing, was introduced in France just a few years ago but has already sprouted half a dozen franchisors.

The following table details the business sector of the franchised networks and the number of franchisees, in France in 2004.