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