Franchising to France

(Last updated: 14 Jan 2008)

Trends and opportunities

The market

In 2006, the French franchising industry had a turnover of approximately A$70.6 billion, which represents six to seven per cent of French trade. France offers Australian franchises real opportunities.

After numerous years, France still ranks first in Europe in terms of turnover and represented approximately 40 per cent of total European franchising turnover. France has mainly developed its own networks with only 12.3 per cent of the franchises represented in France originating in foreign countries. However, this figure has been increasing in 2006, getting almost back to its 2002 level.

As of January 1, 2007, there were 1037 franchisors and approximately 43,680 franchisees. In 2006, their combined turnover was €45 billion. Compared with 2006, these figures increased by 10.6 per cent for the number of franchise systems and by 4.7 per cent for their combined turnover.

French franchising in figures

Year	Franchisors	Franchisees	Turnover (billion €)
1997	517	28,851	28.5
1998	530	29,673	29.9
1999	553	30,630	31.1
2001	653	32,240	30.5
2002	719	33,268	33.71
2003	765	34,745	34.1
2004	835	36,773	41.8
2005	929	39,510	43
2006	1037	43,680	45

(Source: French Franchise Federation, February 2006)

Traditionally, franchising in France has been particularly important in the retail sector but the service sector is in constant growth. Indeed, there has been in 2006 a surge of new concepts in the sector of services. Subsectors such as business services, cleaning, maintenance or educational playgrounds are now developing.

Retail operations represent 52.6 per cent of networks; with the service sector accounting for 47.4 per cent. Sales outlets are distributed roughly in the same proportions: 50.6 per cent in the retail sector, 49.4 per cent in the service sector.

The market leaders are networks specialised in clothing, furniture, hair and beauty care, food, but also flowers or second-hand shops. Still according to the French Franchise Federation, these networks are for most of them thriving under more than 500 brands.

Distribution of the French franchising networks in 2006 by sector

(Source: French Franchise Federation, February 2007)

Another characteristic of the French franchising industry, in the global picture, is the small presence of foreign networks operating in France. In 2006, foreign networks represented only 12.3 per cent of franchises (128 networks). This figure has decreased over the last years from its level in 2002 which was 12.9 per cent but improved this year of 2.7 per cent.

Currently, foreign networks are particularly important in the clothing and accessories sector (15.9 per cent or 41 networks) and also in the home and garden (9.5 per cent, nine networks), training (33.3 per cent, five networks) and businesses (15.6 per cent, 10 networks) sectors. Foreign franchise networks are less important in the travel (no foreign network), building (five per cent, one network) and hair and beauty care (7.7 per cent, six networks).
 

A third of foreign networks in France come from the USA (approximately 25 networks). Next in the rankings come Italy (15), Belgium (14), Spain (10), followed by Germany, Sweden, Australia, Canada, Great Britain, Portugal and the Netherlands.  

Breakdown of franchising in France

(Source: French Franchise Federation, February 2007)

Four main sectors experienced significant growth between 2005 and 2006 in terms of networks and number of franchisees.

Sectors	Number of networks		Number of franchisees
	2005	2006	2005	2006
Misc. business	96	111	3717	4595
Other personal services	63	78	1,459	1,647
Business services	52	64	759	1,068
Hair & beauty care	87	107	5,233	5,391

(Source: French Franchise Federation, February 2007)