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المنظمون السيدة / روز ماري موينز Ms. Rose Mary
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FRANCHISING : A VECTOR FOR CREATING ECONOMIC ACTIVITY AND HEALTH R.M. MOINS Promotion & Training Manager French Franchise Federation
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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
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Definition Franchising is a commercial development strategy based on an interdependant partnership between independent commercial entities, the franchisor and the franchisees
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Grounds of franchising 3 major elements The brand The know-how The assistance
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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
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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
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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
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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)
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Number of franchise brands : 28.000 (est.) Number of franchisees : 1.300.000 (est.) Turnover :7.000 billion USD (est.) A FEW FIGURES In the world
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1141 Franchisors IN FRANCE
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45996 Franchisees IN FRANCE
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75 Billion USD IN FRANCE
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HOW DOES FRANCHISING CONTRIBUTE TO CREATE ECONOMIC ACTIVITY ?
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In France in 2007 Franchising created : 2 500 franchised outlets (run by independent operators) 100 franchisors And over 25 000 direct employment 1. Franchising creates enterprises & employment
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Suppliers of the franchisors and franchisees Construction, decoration, real estate… 2. Franchising generates activity and wealth upstream of the distribution sector
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French figures 1994 : 38 Billion USD 2007 : 75 Billion USD 3. Franchising generates turnover
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Creating new markets : fast foods, fast servicing, beauty & personal care…. 4. Franchising opens up new market
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Hotel industry, bakeries/pastry shops, flower shops,.... 5. Franchising contributes to the modernization of certain traditional professions
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A greater sustainability due to the nature of franchise network National brands become world brands 6. Franchising is a formidable vector for export
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WHAT FACTORS EXPLAIN SUCH SUCCESS ?
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1.Well selected and motivated people 2.High level of professionalism 3.Strong values
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المنظمون السيدة / روز ماري موينز Ms. Rose Mary
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