المنظمون السيدة / روز ماري موينز Ms. Rose Mary

FRANCHISING : A VECTOR FOR CREATING ECONOMIC ACTIVITY AND HEALTH R.M. MOINS Promotion & Training Manager French Franchise Federation

GUIDELINES 1.Definition of franchising 2.Origin and development of franchising in the world and in France 3.Why franchising creates economic activity 4.Factors of success

Definition Franchising is a commercial development strategy based on an interdependant partnership between independent commercial entities, the franchisor and the franchisees

Grounds of franchising 3 major elements The brand The know-how The assistance

FRANCHISE 2007 COMMITMENTS OF THE PARTIES FRANCHISORS GENERAL COMMITMENTS Develops & maintains the commercial and technical know how Controls the respect of the concept by the franchisee Makes sure that each franchisee respects his obligations and commitments

FRANCHISE 2007 COMMITMENTS OF THE PARTIES FRANCHISEES GENERAL COMMITMENTS Takes an active part in the life of the network Does not compete with the network Provides the franchisor with operational information Keeps confidentiality

1920 : starting off in the US 1960 : development in the US 1970 : development in Western Europe 1980 : boom of the franchising and introduction in other parts of the world (Japan, Asia, Latin America & more recently the Middle East and Eastern Europe) HISTORY

FRANCHISING IN THE WORLD EUROPE (Austria, Finland, France,Germany, Great Britain, Italy, Netherlands, Portugal, Sweden, Turkey) NORTH AMERICA (incl. Canada) LATIN AMERICA (Argentina, Brazil, Colombia, Mexico) ASIA (Hong Kong, India, China, Japan, Malaysia,Taiwan, Singapore) PACIFIC (Australia, New Zealand) AFRICA (South Africa, Egypt, Morocco)

Number of franchise brands : (est.) Number of franchisees : (est.) Turnover :7.000 billion USD (est.) A FEW FIGURES In the world

1141 Franchisors IN FRANCE

45996 Franchisees IN FRANCE

75 Billion USD IN FRANCE

HOW DOES FRANCHISING CONTRIBUTE TO CREATE ECONOMIC ACTIVITY ?

In France in 2007 Franchising created : franchised outlets (run by independent operators) 100 franchisors And over direct employment 1. Franchising creates enterprises & employment

Suppliers of the franchisors and franchisees Construction, decoration, real estate… 2. Franchising generates activity and wealth upstream of the distribution sector

French figures 1994 : 38 Billion USD 2007 : 75 Billion USD 3. Franchising generates turnover

Creating new markets : fast foods, fast servicing, beauty & personal care…. 4. Franchising opens up new market

Hotel industry, bakeries/pastry shops, flower shops, Franchising contributes to the modernization of certain traditional professions

A greater sustainability due to the nature of franchise network National brands become world brands 6. Franchising is a formidable vector for export

WHAT FACTORS EXPLAIN SUCH SUCCESS ?

1.Well selected and motivated people 2.High level of professionalism 3.Strong values

المنظمون السيدة / روز ماري موينز Ms. Rose Mary