المنظمون

ماري السيدة / روزموينز

Ms. Rose Mary

FRANCHISING :A VECTOR FOR CREATING ECONOMIC

ACTIVITY AND HEALTH

R.M. MOINSPromotion & Training ManagerFrench 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

FRANCHISOR’S 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

FRANCHISEE’S 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 : 28.000 (est.)

• Number of franchisees : 1.300.000 (est.)

• Turnover : 7.000 billion USD (est.)

A FEW FIGURES

In the world

450553

765835

929

10371141

0

200

400

600

800

1 000

1 200

Number of franchisors

1994

1999

2003

2004

2005

2006

2007

1141 FranchisorsIN FRANCE

25 700

30 63034 745

36 77339 510

43 68045 996

0

10 000

20 000

30 000

40 000

50 000

Number of franchisees

1994

1999

2003

2004

2005

2006

2007

45996 FranchiseesIN FRANCE

4549

54

6568

72 75

05

101520253035404550

Turnover

1994199920032004200520062007

75 Billion USDIN FRANCE

HOW DOES FRANCHISING CONTRIBUTE TO CREATE ECONOMIC ACTIVITY ?

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

• 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, ....

5. 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

ماري السيدة / روزموينز

Ms. Rose Mary