EUROPEAN FRANCHISE REPORT

Transcription

EUROPEAN FRANCHISE REPORT
EUROPEAN
FRANCHISE
REPORT
Published by the European Franchise Federation - EFF - 2012
Table of Contents
Part IFranchising - what it is, how it contributes
to the growth of the economy
1. Franchising: description
2
2. Franchising: factors of success
3
2.1 A
dynamic & balanced division of tasks between franchisor and franchisee
2.2 Recruitment policy: a rigorous selection of motivated franchisees
2.3 Professionalism, internal training, learning to be entrepreneurs
2.4 Benchmarking and promoting best practice, better performance
2.5 The franchisor's support system
2.6 A strong value system shared by all in the network
3. Franchising: a vector for economic growth
6
3.1 Franchising promotes the creation of enterprises
3.2 Franchising promotes the creation of employment
3.3 Franchising generates turnover
3.4 Franchising contributes to a middle-level economic platform
3.5. Franchising preserves and transforms traditional independent trades
3.6 Franchising promotes the learning and spirit of entrepreneurship
3.7 Franchising is a formidable vector for cross-border trade and export
3.8 The transfer of franchising know-how as a means of "technology transfer" in developing markets Part II 21 Country Reports
12
Part III Statistical insight into the economic share of franchising (tables)
56
List of members of the European Franchise Federation
Part I
Franchising: what it is,
how it contributes
to the growth
of the economy
EFF • 1
1. Franchising: description
A franchised business is one that is modelled
• as a structured, replicable commercial system by a founder/conceiver company,
"the franchisor"
• which will be contractually sold to independent entrepreneurs, "the franchisees",
with the purpose of them growing their business. They are legally, financially
and fiscally independent of the franchisor.
• the franchise network is made up of the franchisor and all of the franchisees.
A franchise company may operate several channels of distribution in parallel:
franchising (in brick and mortar outlets or mobile vehicles), company-owned
outlets, direct selling,etc. E-commerce is developing as a channel that cuts across
the others. Its potential needs to be integrated to a company's overall strategy.
This report focuses on franchising only.
To be recognised as a proper franchise, the system must be founded on the
following essential and constitutive elements:
• a brand name
• knowhow developed by the franchisor and destined to be transferred to the
franchisee as part of the transacted franchise package whose purpose it is to
provide him with a business package with which he can start to operate more
quickly and with facilities that a stand-alone start-up would not have. The
franchisor must continue to develop the knowhow to maintain the brand &
system's competitiveness on the market. The knowhow that the franchisor will
develop is twofold: that needed for the internal business of the head company,
and that which is designed to be transferred to the franchisees.
• the initial and on-going assistance to the franchisees during the term of the contract.
The notion of "system" is sometimes translated in franchise literature as "format",
thus a "business format franchising" contract must include at least these 5 essential
elements1:
✔ a brand name (registered as a brand name and/or a trademark, etc.) which
serves as the umbrella sign for network, and a rallying sign for the consumer
and public),
✔ a licence to the use the brand, granted to the franchisee by the franchisor,
✔ a business system – a business concept formatted into a duplicable value
“package” founded on the franchisor’s tested knowhow as well as his continued
assistance during the term of the agreement,
1 Martin Mendelsohn, “Franchising Law”, Kluwer, 2004.
2 • EFF
✔ payment by the franchisee of a financial consideration, either in a direct form,
such as an entrance fee and/or continuing fee (“royalty”), and/or an indirect
form such as a mark-up on supplied goods,
✔ the investment in, and ownership of, the assets of the franchised business by
the franchisee.
The franchise contract is between 2 independent entrepreneurs. This is a B-to-B
relationship.
For Competition law, the franchise agreement is founded on a vertical relationship
between the parties, since each operates at a different level of production or
distribution, seller and buyer respectively. Distribution or Service agreements
may contain "restrictive clauses"2 (to competition) such as territorial exclusivities
or other non-compete clauses. The conditions laid on such clauses are different
according to whether the contractual agreement is vertical (ie. as between
franchisor and franchisee) or horizontal (ie. as in cooperative agreements).
2. Franchising: essential factors of success
The success of franchising, generally speaking, comes from the fact that it has
developed as a technology for business development by essentially responding
to and adapting itself to the ever-evolving needs of a given market and to the
consumers who at all times, in all contexts, by virtue of their changing life-styles
and consumer awareness, seek choice + a good quality/price ratio + convenience
+ service. Franchised businesses purport to deliver all of these elements.
2.1 A
dynamic & balanced division of tasks between franchisor
and franchisee
Role and responsibility of the Franchisor:
As the seller of the franchise, and developer of the network, his tasks are specific.
These include:
• to be the overall strategist; to keep the longer-term development in sight and
to take the decisions that will keep the brand and its development abreast of
competition as well as safeguard its appeal to the end-customer.
• to develop, at the level of the head office, the commercial, technological, staffing
and service platform that will efficiently support the network of franchisees
during the term of each franchise contract.
2 Commission Regulation (EU) No 330/2010 of 20 April 2010 on the application of Article 101(3) of the Treaty on
the Functioning of the European Union to categories of vertical agreements and concerted practices.
EFF • 3
• to develop the interface between head office and each franchisee so as to steer &
nourish the personal dynamics of the network. This includes implementing the
dialogue structures with the franchisees, implementing internal conciliation or
mediation services, and generally building up the spirit and quality of the network.
• for each of the elements above, the franchisor must plan for and provide the
level of investment that will be required to realise all of the above, as well as
always seek to improve the level of professionalism that will safeguard the
standards and appeal of the brand.
Role and responsibility of the Franchisee:
As buyer of the franchise, the task of each franchisee is to loyally operate the
business as it is conceived and organised whilst developing sales, engaging
customer satisfaction and brand loyalty. Customers are attracted to the franchise
brand by virtue of its image, reputation and service. It is the franchisee's
responsibility to sustain these expectations. The franchisee must also be a "team
player" in the framework of the network. The franchisor will have a system that
organises a systematic flow of commercial and financial information upstream
from the franchisees to the head office. This data will serve to define performance
benchmarks, set new objectives as well as put into place remedial strategies if
need be. Each franchisee will contribute to this pooling of information.
The respective roles and responsibilities of franchisor and franchisees in a
franchise network are different and specific, each at their level of operation. Their
relationship is constructed as a "synergy of collective intelligence"3.
This in itself is a significant factor of success of the "franchise business model".
2.2 Recruitment policy: a rigorous selection
of motivated franchisees
Recruitment is key to the success of any business, but in particular to one based on
a network of independent entrepreneurs. It is the responsibility of the franchisor
to develop a rigorous and coherent recruitment policy. The qualities he will seek
in a franchisee, amongst others, are the motivation to invest in and work as an
independent entrepreneur in a context of the network he has chosen to invest in,
to have a real interest for the sector of business, be customer-orientated, to have
a team-player spirit, to be respectful of the franchisor's concept and of all the
elements of the business format, to have the motivation to grow and adapt as the
market and circumstances call for.
3 Expression coined by the French Franchise Federation (FFF)'s.
4 • EFF
2.3 Professionalism, internal training, learning
to be entrepreneurs
Franchising offers the opportunity "to be in business for yourself but not by
yourself".
This attracts to franchising people from a broad range of backgrounds of, many
of whom have never run a business or who would not consider running one if they
were to start from scratch4, alone.
In order for a franchise to be able to meet the expectations of its future franchisees,
it needs to be conceived, structured and delivered in a most professional way.
Initial, on-going training and refresher sessions are typical of franchised businesses.
They are for the most part internal to the company. They contribute to bettering the
skills of those in training, but also to the forging of the "network spirit".
In is in this framework that people with no experience of running a business learn
to run one, "for themselves but not by themselves".
Training classes exist not only for the franchisees, but often for the staff of
franchisees.
The incidence of employed staff in a franchise who eventually choose to become
franchisees themselves is real.
Franchise associations play a significant role in offering introductory courses for
would-be franchisors or franchisees, or staff of franchise companies.
This "context of learning" is one of the significant factors of success of the
"franchise business model".
2.4 Benchmarking and promoting best practice,
better performance
Optimizing the management of a network composed of independent entrepreneurs
relies on the head company (franchisor) installing an efficient reporting system
(ITC system) that can gather all of the significant economic and financial data
of each operation. This data will be treated so as to on the one hand (i) identify
problems in any one operation and address them, and on the other hand (ii)
compare results so as to set benchmarks with the view of promoting better
performance of each operator, and to measure results by.
This rationalisation, benchmarking and defining of targets is one of the success
factors of franchising as opposed to the situation of many stand-alone independent
entrepreneurs who do not have the elements of direct comparison necessary for
a critical assessment.
4 Results of franchise exhibition visits reveal that the profile of would-be franchisees is very diverse.
EFF • 5
2.5 The franchisor's support system
In franchising, as already expressed, the support structure and transfer of
knowhow is one of the essential contractual features of a franchise agreement. It
must be there during the term of the contract. It justifies the fees (whatever their
form) paid by the franchisee.
Support, on an inter-personal level, also comes from the social life of the network.
In times of economic hardship, related to the economy in general or to the life of
a particular network, this double support structure helps to buoy up franchised
enterprises to an extent that stand alone enterprises do not benefit from. An
example in point is Spain currently, whose economy is severely hit by the world
financial and economic crisis. A recent article5 states that the "buoyancy factor"
of the franchise support structure in general has proved to be helpful to many
Spanish franchise systems during this time (See section on Spain, Part II).
2.6 A strong value system shared by all in the network
The relationship between collaborating independent entrepreneurs, franchisor
and franchisee, who share a vision of sustained growth together, must necessarily
be founded on the values of mutual recognition, respect and confidence. This is
built upon a foundation of transparency, dialogue, loyalty and equity6.
3. Franchising: a vector for economic growth
3.1 Franchising promotes the creation of enterprises
The creation of enterprises occurs as a result of new franchise concepts being
created, each with its potential of creating a network of new franchised enterprises.
In other words, there is the creation of new franchise brands/concepts, and
within each brand, the development of its network of franchised businesses with
independent franchisees.
A franchise head company may develop several brands, as well as variations of
one brand.
It may also allow its network of franchisees to develop as single-unit franchisees
only, or allow a franchisee to have more than one unit (multi-unit franchisees)
or allow a franchisee to operate more than one brand (cross franchising).
Combinations of the latter two options are also possible.
5 Article by Prudencion Martinez-Franco, Cabinet d’Avocats LELOUP, Sevilla, Spain, 12/7/2012.
6 See EFF publication 2012: The European Code of Ethics for Franchising & its national Extensions & Interpretations.
6 • EFF
Franchises may be imported or home-grown; in retail or in services, or a mix of both.
They exist in all ranges of initial investment level for a unit franchise: from the
very expensive (> 20mioE) to the less expensive (around 10,000E).
Franchised businesses operate within the context of the general economy and
therefore contribute to the sustaining of enterprises upstream and downstream
of their own activity.
To a significant extent, at its grass-roots level, that is at the level of each independent
franchised unit, including the separate head company, franchised enterprises
essentially fall in the category of Small and Medium-sized enterprises7.
3.2 Franchising promotes the creation of employment
Direct employment:
Employment is created at several levels in a franchised business:
• at the level of the franchisor/head company/subsidiary office(s) with staff(s) of
professionals, administration, etc.
Many franchises operate a combination of franchise network as well as companyowned outlets, the latter contributing its share to employment.
• at the level of each franchised unit. The unit can offer, as the case may be,
employment to the owner who operates his unit(s) himself, to his family, to his
employees.
Indirect employment:
Again, franchised businesses operate within the context of the general economy
and therefore contribute to the employment in enterprises upstream and
downstream of their own activity.
3.3 Franchising generates turnover
Turnover is generated as a result of what is described in 3.1 & 3.2.
A significant aspect is that the organistion & professionalism that accompanies
the development of a franchise network contributes to integrating businesses
from the informal sector into the formal & more transparent business sector.
7 SME's: definition of thresholds, European Commission 2003
Enterprise category
Headcount
Turnover (Euro)
Balance sheet total (Euro)
Medium-sized
< 250
≤ € 50 million
≤ € 43 million
Small
< 50
≤ € 10 million
≤ € 10 million
Micro
< 10
≤ € 2 million
≤ € 2 million
EFF • 7
3.4 F
ranchising contributes to a middle-level economic platform
Franchising, in the "Distributive Trades8" (including Retail) and Services, contributes
to the existence of a middle-level platform between the large distribution & service
groups and the small stand-alone enterprises, and in doing so, safeguards &
develops business competition and diversity.
Globalization has favored the growth of very large distribution groups which
operate with vast networks of multiple distribution channels, including large
company-owned outlets. At the same time, a lot of small independent traders
and businesses have disappeared because of lack of resources and/or knowhow
to compete with this competition.
By virtue of the success factors described above, a tested franchised business
system offers small independent business owners the opportunity to exist
i& develop n the face of such competition by virtue of being in the a network
context with its support system. Thus, franchised businesses offer the adaptability,
flexibility and resources to operate in competitive markets.
The relevance of this middel platform spurs global players also adopt franchising
as one of their development strategies, thus developing franchised daughterbrands aimed at middle-level and smaller, more targeted markets (niche
markets).
Franchising, with its development at SME level, contributes to safeguarding and
even enhancing competition as well as promoting market diversity.
3.5. Franchising preserves and transforms traditional
independent trades
Many classic, traditional "high-street" independent trades and artisans (hairdressers, flower shops, small groceries, laundrettes, stationary/postal services, beauty parlours, specialised foods, hotel industry, restaurants, travel agencies,etc.)
have already opted for or converted their development strategy to franchising.
This strategy contributes to modernising their operations, image and appeal to
customers, thereby dynamising a significant SME segment of the economy.
This dynamism is an element which can influence and be transposed to countries
where commerce and traditional trades are still largely prevalent, thus modernising
and giving a "global-identity" flavour to local trade and services (see 3.8).
8 Eurostat: 2011, Key Figures on European Business with a special feature on SMEs.
8 • EFF
3.6 F
ranchising promotes the learning and spirit
of entrepreneurship
The "context of learning/training" described in section 2.3 promotes entrepreneurship.
It can turn a non-entrepreneur into an entrepreneur. It enhances professionalism.
It can help give other family members, acquaintances, employees, etc. the idea
and confidence to become entrepreneurs too, franchising being an option.
Entrepreneurial training is key to develop the desire and confidence to become
an entrepreneur. Franchise companies factor this dimension into their franchise
package.
3.7 F
ranchising is a formidable vector
for cross-border trade and export
Franchising is a formidable vector for export and cross-border trade.
The replicable factor of franchising makes this business strategy particularly
suited to territorial expansion, either within in national borders or cross-border
as well as international. The international import/export of successful franchise
brands finds its source in a world where consumer tastes and living habits are
now "global" in reference, sustained by demographics and new spending power
in emerging markets.
To increase the chances of success in expansion and export, it is vital for a
franchise system to be first piloted by the head company (or by means of another
suitable & balanced arrangement between independent partners) in the relevant
target market in order to test the adaptability of the system to the market.
3.8 The transfer of franchising knowhow as a means
of "technology transfer" to developing markets
The transfer of franchising knowhow that accompanies the export of franchises
(by means of subsidiaries, joint-ventures, area development agreements, master
franchising, direct franchising) contributes to modernizing and rationalizing
segments of the economy, raiseing the level of local management, of labor
efficiency & of levels of compensation. It also inspires local investors to create
domestic brands which is why national franchise growth is now such a thriving
segment of the economy in developing markets (see Table 1.B).
EFF • 9
10 • EFF
Part II
21 Country Reports
EFF • 11
Austria - Franchise Review
AUSTRIAN FRANCHISE
ASSOCIATION
ÖSTERREICHISCHER
FRANCHISE-VERBAND (ÖFV)
www.franchise.at
Austria is an EU Member State
since January 1, 1995.
Member of:
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
Franchising started in Austria in 1937 with a national brand by the name of PALMERS
(lingerie), still very successful at home and abroad.
2007
In blue: cross-referenced in tables below
2008
Number of distinct franchise brands
2009
2010
400
420
2011
Number of franchised points of sale/business
(not company-owned)
Employment in the above points of sale/business
(including self-employed) (estimated)
Turnover for the above points of sale/business
(in bn Euros)
7.200
8.000
64.000
61.000
7,4
7,9
Proportion of domestic brands (in %)
43,5%
46%
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover:
2008-2010: 2008-2010: 2008-2010: 2008-2010: 2,5%
5,6%
-2,3%
3,4%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
NACE
Rev. 2
12 • EFF
NACE Rev. 2 categories
Association classification
G
47
Retail trade except motor vehicles & motor cycles
I
56
Food & Beverage service activities
N
82
Office & business support activities
P
85
Education
# franchise
brands/systems
2009
2010
G 47
180
I 56
170
N 82
45
P 85
25
TOTAL
420
2011
47.7 Fashion
85.1-5 Other than institutional
# franchised POS/outlets
2009
2010
8.000
2011
# employees in Total
2009
2010
61.000
2011
Turnover in POS (bn €)
2009
2010
7,9
2011
0
50 100 km
CZECH REPUBLIC
GERMANY
SLOVA.
Vienna
AUSTRIA
LICHTEN.
SWITZER.
ITALY
SLOVENIA
HUNGARY
Where do domestic brands
expand to (list 5 countries from
most to least) ?
Germany (60%), CEE countries,
Italy, Switzerland.
Where do foreign brands come from
(list 5 countries from most to least) :
Germany, USA, Italy, UK, France.
CROATIA
Modes of entry of foreign franchises:
(listed by order of preference from the following modes: direct franchising, subsidiary, area development, master
franchising, joint venture)
1. direct franchising, 2. subsidiary, 3. master franchising, 4. area development,
5. joint venture.
Austrian Brands (5, by order of number of franchised outlets):
Allianz, Raiffeisen-Unser Lagerhaus, OMV Viva, Palmers
Self-Regulation:
ÖFV members commit to respecting the European Code of Ethics for Franchising.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (ÖFV)
Not-for-profit organization created in 1986 in Vienna.
Main category of membership: franchise and master franchise companies.
Number of members in 2012: 130 (80% franchisors)
Sources of association income: membership fees (48%), exhibition/conferences
(34%), Sponsoring (10%), marketing activities (7%)
Composition of the Board of Directors: representatives of the head franchise company
Chairman:
Mr. Andreas SCHWERLA, McDonald´s Austria
General Manager: Mrs. Susanne SEIFERT
ÖFV assets:
Well-established support programs for start-ups, including franchising, by Chambers
of Commerce, Austrian Wirtschafts Service; some banks are familiar & supportive of
franchised businesses, particularly Raiffeisenlandesbank Niederösterrieich-Wien;
government support to the association under specific conditions: "Neugründungsförderung"; franchise media (Franchise-net, franchise portal, Franchise Erfolge),
Vienna Franchise-Exhibition.
EFF • 13
BELGIUM - Franchise Review
BELGIAN FRANCHISE
FEDERATION
Fédération Belge de la Franchise (FBF)
Belgische Franchise Federatie (BFF)
www.fbf-bff.be
Belgium is an EU Member State
since January 1, 1958.
Member of:
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
Franchising was introduced in Belgium in 1930 with a national food-market brand, NOPRI.
In blue: referenced in the tables below
2007
2008
2009
2010
2011
100
200
320
360
350
Number of distinct franchise brands
Number of franchised points of sale/business
(not company-owned)
Employment in the above points of sale/business
(including self-employed) (estimated)
Turnover for the above points of sale/business
(in bn Euros)
3.500
11.000
40.000
80.000
8,0
15,3
60%
60%
Proportion of domestic brands (in %)
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment: Average annual growth of turnover:
2009-2011: 4,85%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
G
NACE
Rev. 2
NACE Rev. 2 categories
Association classification
47
Retail trade except for motor vehicles/motorcycles
Foods; DIY
I
55/56
Accommodation & Food service activities
Fast foods
L
68
Real Estate activities
N
79/82
Administrative & support service activities
# franchise
brands/systems
2009
2010
2011
320
360
350
# franchised POS/outlets
2009
2010
2011
# employees in Total
2009
2010
2011
Turnover in POS (bn €)
2009
2010
2011
G 47
I 55/56
L 68
N 79/82
TOTAL
14 • EFF
11.000
80.000
15,3
North Sea
Where do domestic brands expand to
(list 5 countries from most to least) ?
France, Luxembourg, Netherlands,
China, Morocco.
NETHERLANDS
Brussels
GERMANY
BELGIUM
FRANCE
0
50
100 km
LUXEMBOURG
Where do foreign brands come from
(list 5 countries from most to least) :
France, Netherlands, USA, UK, Italy.
Modes of entry of foreign franchises:
(listed by order of preference from the following modes:
direct franchising, subsidiary, area development, master
franchising, joint venture)
1. direct franchising, 2. master franchising, 3. subsidiary, 4. joint venture.
Belgian (5 first ones):
Mister Minit, hubo, Aveve, Café Leffe/Belgian Beer Cafe,
Leonidas
Self-Regulation:
FBF-BFF members commit to respecting the European Code of Ethics for
Franchising; internal literature refers to "authentic and ethical franchising".
National Legislation:
Law on Pre-contractual disclosure for commercial partnership agreements
(which includes franchising), 19 December 2005; each year the Federal Parliament
receives two evaluation reports assessing the proper implementation of the law,
one by the government and one by an Arbitration Committee composed equally
of franchise representatives, franchisors and franchisees; the FBF-BFF is
represented at the Arbitration Committee which puts the FBF-BFF at the forefront
of the defense of the interests of franchising in Belgium.
EU Legislation of relevance to Franchise contracts: EU REGULATION No 330/2010
of 20 April 2010 on the application of Article 101(3) of the Treaty on the Functioning
of the EU to categories of vertical agreements and concerted practices.
ASSOCIATION INFORMATION (FBF-BFF)
Not-for-profit organization founded in 1992 in Brussels. Main categories of
membership: franchisors, junior & starter, associated members (professionals).
Number of franchise system members in 2012: 98 (75% franchisors)
Sources of association income: membership fees (75%), franchise exhibition/
conferences (4.7%), training/seminars (2.4%), exhibition (4.7%),sale of books
(1.5%), sponsorships (12%).
Composition of the Board of Directors: franchisors, master franchises, franchisees
(since 2008)
Chairman:
Mr. Didier DEPREAY, Point Chaud s.a
Managing Director: Mr. Gilbert LARDINOIS
FBF-BFF assets:
Franchisor & franchisee-led Committee work, accreditation scheme for of all member categories; website/newsletter, 2 franchise exhibitions (Brussels, Gent); service
to members includes a professional insurance for franchisors to specifically protect
their franchise activity in general (not the business activity).
EFF • 15
CROATIA - Franchise Review
CROATIAN FRANCHISE
ASSOCIATION
Hrvatska udruga za franšizno
poslovanje (FIP)
www.fip.com.hr
Croatia is a Candidate to the EU.
Member of:
Currency: Croatian Kuna (HRK);
1 E ~ HRK 7.5
FRANCHISE MARKET INFORMATION:
Franchising was introduced in Croatia in 1969 with the American DINERS Credit Card system.
2007
In blue: referenced in the tables below
2008
2009
2010
2011
150
168
175
Number of distinct franchise brands
125
Number of franchised POS/business (not
company-owned)
900
900
1000
Employment in the above POS/business
(including self-employed)
15.974
16.500
16.000
Turnover for the above POS/business (in bn
Euros)
1,8
Proportion of domestic brands (in %)
20%
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover:
30%
2007-2011: 6,6%
2007-2011: 2,8%
2007-2011: 0,0%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
NACE
Rev. 2
Association classification
NACE Rev. 2 categories
G
47
Retail trade except for motor vehicles & motorcycles
I
55
Accommodation
I
56
Food &beverage service activities
Q
86
Human health & social work activities
M
70
Management, consultancy, PR
P
85
Education
# franchise
brands/systems
2009
2010
2011
150
168
175
# franchised POS/outlets
2009
2010
2011
900
1000
Fitness
# employees in Total
2009
2010
2011
Turnover in POS (bn €)
2009
2010
G 47
I 55
I 56
Q 86
M 70
P 85
TOTAL
16 • EFF
16.500 16.000
7,9
2011
AUSTRIA
IT.
SLOVENIA
Zagreb
HUNGARY
CROATIA
SERBIA
Where do foreign brands come from
(list 5 countries from most to least) :
Italy, Germany, UK, France,
Hungary, USA.
BOSNIA AND
HERZEGOVINA
Adriatic Sea
ITALY
0
50
100 km
Where do domestic brands
expand to (list 5 countries from
most to least) ?
Bosnia & Herzegovina, Serbia,
Slovenia, Hungary, Scandinavia,
Poland, USA.
MONTEN.
Modes of entry of foreign
franchises: (listed by order of preference
from the following modes: direct franchising, subsidiary, area development, master franchising, joint venture)
1. direct franchising, 2. joint-venture, 3. area developer, 4.master franchising.
Croatian Brands (by order of number of franchised outlets):
Velpro partner, Diona,Di Caprio, Varteks, AMDS jeans, Surf’ n
fries, Chill frozen yogurt, Body Creator, Rejuvenation, Moving
Board, San Francisco Coffee house, Mini Cards, Scandal,
Centar Energije, GA franšiza, Centar Mihaela, Putovanja za
dvoje, ASF franšiza, Bubble Bee smoothie, Total Body coach
Self-Regulation:
FIP members commit to respecting the European Code of Ethics for Franchising.
EU Legislation of relevance to Franchise contracts:
as a candidate to EU membership, will transpose EU legislation, including
REGULATION No 330/2010 on Vertical Agreements.
ASSOCIATION INFORMATION (FIP)
Not-for-profit organization created in 2002 in Zagreb, Croatia.
Main category of membership: franchise and master franchise companies.
Number of members in 2012: 15
Sources of association income: membership fees (60%), activities (20%), donations (20%)
Composition of the Board of Directors: representatives of the head franchise
company
Chairman:
Dr. Ljiljana KUKEC, founder of Body Creator
Secretary General: Ms. Gordana CORIC
FIP assets:
FIP is very actively involved in higher education programs about franchising and in
educational/business publications (Franchise Center Osijek, now a franchisee of
the Franchise Center of Univ. of El Paso, Texas, USA); FIP teaching at the Faculties
of Economics & of Entrepreneurship; franchise portal: www.fransiza.fr; from 2013,
government grant program (133.333 €) to create, convert and buy franchised businesses (Ministry of Entrepreneurship & Crafts); Franchise Forum & Exhibition.
EFF • 17
Czech Republic - Franchise Review
CZECH FRANCHISE
ASSOCIATION
Česká asociace franchisingu
(CAF)
www.czech-franchise.cz
The Czech Republic is an EU Member
State since May 1, 2004.
Member of:
Currency: Czech crown (CZK);
1 E ~ 24,9 CZK
FRANCHISE MARKET INFORMATION:
Franchising was introduced in the Czech Republic in 1990 with a national brand,
HUDY SPORT.
In blue: cross-referenced in tables below
2007
2008
2009
2010
2011
131
137
150
168
190
3.476
4.366
Number of distinct franchise brands
Number of franchised points of sale/business
(not company-owned)
Employment in the above points of sale/business
(including self-employed)
30.000
Turnover for the above points of sale/business
(in Euros)
Proportion of domestic brands (in %)
49%
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover:
55%
2008-2012: 9,8%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
NACE
Rev. 2
NACE Rev. 2 categories
Association classification
I
56
Food & beverage service activities
L
68
Real estate activities
N
79
Travel agency, tourism services
S
96
Other personal service activities
Beauty, fitness
G
47
Retail trade except motor vehicles & motorcycles
Fashion, cosmetics, health, DIY
# franchise
brands/systems
2009
2010
2011
137
150
168
# franchised POS/outlets
2009
2010
2011
3.476
4.366
Gastronomy
# employees in Total
2009
2010
I 56
L 68
N 79
S 96
G 47
18 • EFF
TOTAL
30.000
2011
Turnover in POS (bn €)
2009
2010
2011
0
GERMANY
50
100 km
POLAND
Where do foreign brands come from
(list 5 countries from most to least) :
USA, Germany, France,
Great Britain, Spain, Poland,
Hungary and other.
Prague
CZECH-REPUBLIC
AUSTRIA
Slovakia, Austria, Germany,
France, Poland.
SLOVAKIA
Modes of entry of foreign franchises:
(listed by order of preference from the following modes: direct franchising, subsidiary, area development, master
franchising, joint venture)
No data available.
Czech Brands (5, by order of number of franchised outlets):
Švejk Restaurant U Karla, eXpreska, Svet zdravi, RK Evropa,
CrossCafe
Self-Regulation:
CAF members commit to respecting the European Code of Ethics for Franchising.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (CAF)
Not-for-profit organization created in 1993 in Prague.
Main category of membership: franchise and master franchise companies.
Number of members in 2012: 37 (67,5 % franchisors)
Sources of association income: membership fees (73%), fair/conferences (22%),
marketing activities (5%)
Composition of the Board of Directors: franchisors, professionals
Chairman:
Mr. Ivo LAMICH, McDonald´s Czech Republic
General Manager: Mrs. Petra RITSCHELOVA
CAF assets:
Focus building CAF to be the one-stop single reference for "Franchising Quality" in
the Czech Rep.; annual franchise exhibition in Brnö; franchise media: Vlastni firma
Franchising, web sites: www.podnikani-start.cz, www.franchisinginfo.cz.
EFF • 19
Denmark - Franchise Review
Franchise & Chains
Denmark
Danske Kæder
www.dk-franchise.dk
Denmark is an EU Member State
since January 1, 1973.
Member of:
Currency: Danish Krone (DKK);
1 E ~ 7.4 DKK.
FRANCHISE MARKET INFORMATION:
Franchising was introduced in Denmark in 1984 by an American brand, ChemDry.
In blue: cross-referenced in tables below
2007
2008
180
185
Number of distinct franchise brands
2009
2010
2011
188
Number of franchised points of sale/business
(not company-owned)
7.500
Employment in the above points of sale/business
(including self-employed) (estimated)
32.800
Turnover for the above points of sale/business
(in bn Euros)
82%
Proportion of domestic brands (in %)
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover:
2007-2011: 1,5%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
NACE
Rev. 2
Association classification
NACE Rev. 2 categories
G
47
Retail trade except motor vehicles & motorcycles
Fashion, decoration
I
56
Food & beverage service activities
Restaurants
P
85
Education
R
93
Sport & amusement act. (fitness, etc.)
S
96
Other personal service activities
N
81
Services to buildings, landscape etc.
# franchise
brands/systems
2009
2010
2011
# franchised POS/outlets
2009
2010
2011
Property services
# employees in Total
2009
2010
G 47
I 56
P 85
R 93
S 96
N 81
20 • EFF
TOTAL
188
4.000
32.800
2011
Turnover in POS (bn €)
2009
2010
2011
SWEDEN
North
Sea
0
50
100 km
Where do domestic brands expand
to (list 5 countries from most to
least) ?
Scandinavia, EU, China.
Where do foreign brands come from
(list 5 countries from most to least) :
USA, Norway, France, Sweden.
DENMARK
Copenhagen
Modes of entry of foreign
franchises: (listed by order of preference from
the following modes: direct franchising, subsidiary,
area development, master franchising, joint venture)
GERMANY
1. subsidiary, 2. master franchising,
3. direct franchising, 4. area
development, 5. joint venture.
Danish Brands (5, by order of number of franchised outlets):
IC Companys, Noa Noa, ecco, Bianco Footwear, JYSK, BoConcept
Self-Regulation:
FFA members commit to respecting the European Code of Ethics for Franchising.
The association recommends to its members to refer to the Swedish Franchise
Disclosure Law (2006).
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (DK/DFA)
Not-for-profit organization founded in 1984 in Copenhagen.
Main categories of membership: franchisors, master franchises, franchisees,
professionals.
Number of members in 2012: 135 (41 franchisors & 42 franchisees)
Sources of association income: membership fees (93%), fair/conferences (3%),
training courses (2%), marketing (2%)
Composition of the Board of Directors: franchisors, franchisee representation
Chairman:
Mr. Viggo Mølholm, Chairman BoConcept
Managing Director: Mr. Toke ALLENTOFT
DK's assets: is negotiating to get a government growth fund for start-ups to include
franchise start-ups.
EFF • 21
Finland - Franchise Review
FINNISH FRANCHISING
ASSOCIATION (FFA)
Suomen Franchising-Yhdistys ry
(SFY)
www.franchising.fi
Finland is an EU Member State
since January 1, 1995.
Member of:
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
Franchising started in Finland in 1970, with a national brand by the name of Seppälä.
2007
2008
2009
2010
2011
220
255
265
270
270
Number of franchised points of sale/business
(not company-owned)
3.500
4.200
4.400
4.500
4.500
Employment in the above points of sale/business
(including self-employed) (estimated)
35.700
43.000
45000
46.000
46.000
Turnover for the above points of sale/business (in
bn Euros)
43,0
50,0
50,0
51,0
54,5
Proportion of domestic brands (in %)
75%
74%
74%
74%
74%
In blue: croos-referenced in tables below
Number of distinct franchise brands
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover: 2007-2011: 5,4%
2007-2011: 6,8%
2007-2011: 6,8%
2007-2011: 6,3%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
22 • EFF
Association classification
G
47
Retail trade except motor vehicles & motorcycles
Retail (36%)
I
56
Food & beverage service activities
Fast food, rest., cafés (16%)
I
56
Services to buildings, landscaping etc.
I
56
Sport, fitness, recreational activities
N
82
Real estate activities
P
85
Human health activities/social work
X
NACE
Rev. 2
NACE Rev. 2 categories
Services (48%)
Other (unspecified)
# franchise
brands/systems
2009
2010
# franchised POS/outlets
2011
G 47
82
I 56
28
I 56
17
I 56
10
N 82
8
P 85
7
X
118
TOTAL
270
2009
2010
2011
4.500
# employees in Total
2009
2010
2011
46.000
Turnover in POS (bn €)
2009
2010
2011
54,5
Barents
Where
doSeadomestic brands expand to
(list 5 countries from most to least) ?
Sweden, Russia, Estonia, Denmark,
Norway.
NORWAY
Where do foreign brands come from (list
5 countries from most to least) :
Sweden, Denmark, Norway, US, UK.
Modes of entry of foreign franchises:
SWEDEN
0 50 100 km
RUSSIA
FINLAND
Gulf of
Bothnia
(listed by order of preference from the following modes:
direct franchising, subsidiary, area development, master
franchising, joint venture)
1. master franchising, 2. area
development, 3. direct franchising,
4. subsidiary, 5. joint Venture.
Finnish Brands (5, by order of number
of franchised outlets):
Helsinki
ESTONIA
Baltic Sea
Kotipizza, R-kioski,
Laatutakuu,
Kiinteistömaailma
Self-Regulation:
FFA members commit to respect the European Code of Ethics for Franchising.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (SFY/FFA)
Not-for-profit organization founded in 1988 in Helsinki.
Main category of membership: franchise and master franchise companies.
Number of franchise system members in 2012: 122 (72% = franchise systems)
Sources of association income 2011: membership fees (83%), Franny Awards
Gala (5%), publications (10%), other (2%)
Composition of the Board of Directors: franchisors:
Chairman:Mr. Henri HÄYRINEN, CEO of Suomen Laatutakuu Palvelut Oy
(facility services)
CEO:
Mr. Juha VASTAMÄKI
FFA assets:
Association membership covers significant portion of franchise systems in Finland;
annual Franchise Report ('Franchising Suomessa 2012'); Franchise Business
College (http://www.fbc.fi).
EFF • 23
France - Franchise Review
FRENCH FRANCHISE
FEDERATION (FFF)
Fédération française de
la Franchise (FFF)
www.franchise-fff.com
France is an EU Member State
since January 1, 1958.
Member of:
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
Franchising was introduced in France in 1929 with the French brands PIGIER and Pingouin®.
In blue: cross-referenced in tables below
2007
2008
2009
2010
2011
Number of distinct franchise brands
1.137
1.229
1.396
1.477
1.569
Number of franchised points of sale/business
(not company-owned)
47.291
50.127
53.101
58.351
62.041
Employment in the above points of sale/business
(including self-employed) (estimated)
315.715
330.991
327.773
42,0
45,0
47,7
47,9
49,2
85%
85,2%
Turnover for the above points of sale/business
(in bn Euros)
Proportion of domestic brands (in %)
Average annual growth of franchise brands: Average annual growth of points of sale: Average annual growth of employment:
Average annual growth of turnover: 2007-2011: 8,5%
2007-2011: 7,1%
2007-2009: 1,9% despite neg. growth in 2009
2007-2011: 5,2% Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
NACE
Rev. 2
Association classification
NACE Rev. 2 categories
G
45
Repair motor vehicles & motorcycles
Sale motor accessories
G
47
Retail except motor vehicles/cycles
Personal/household goods
I
55
Accommodation
Hotels
Food
I
56
Food & beverage services
S
95
Repair of computers & personal & household goods
S
96
Other personal service activities
N
79
Travel agency/tour operator reservation services etc.
# franchise
brands/systems
# franchised POS/outlets
Personal services , beauty
# employees in Total
2009
2010
2011
2009
2010
2011
2009
1.396
1.477
1.569
53.101
58.351
62.041
327.773
2010
2011
Turnover in POS (bn €)
2009
2010
2011
47,7
47,9
49,2
G 45
G 47
I 55
I 56
S 95
S 96
N 79
24 • EFF
TOTAL
NETHER.
GREATBRITAIN
BELGIUM
LUX.
GERMANY
Paris
AUSTRIA
SWITZERLAND
0
100
ITALY
200 km
Where do domestic brands expand
to (list 5 countries from most to least) ?
305 French brands export everywhere
and in particular to Europe, North
Africa & the Middle East.
FRANCE
SPAIN
French Brands (5 first ones):
Where do foreign brands come from
(list 5 countries from most to least) :
USA, Italy, Spain, UK, Canada.
Modes of entry of foreign
franchises: (listed by order of preference from
the following modes: direct franchising, subsidiary,
area development, master franchising, joint venture)
1. master franchising, 2. subsidiary
which develops the franchise network,
3. joint venture.
VIVAL (food), Guy Hoquet (real estate), Gamm vert (garden products),
YVES ROCHER (Beauty products), ALAIN AFFLELOU (eye ware).
Self-Regulation:
FFF members commit to respecting the European Code of Ethics for Franchising
as well as to the FFF's national extensions to this Code.
National Legislation: Law + Decree on Pre-contractual disclosure (applicable to
franchising): Code of Commerce, article L 330-3 which replaces the Loi Doubin of
31 December 1989, article 1, referred to as the "Loi Doubin"; Decree n° 91-337
of April 4 1991.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (FFF)
Not-for-profit organization founded in 1971, in Paris.
Main categories of membership: franchisors, master franchises, professionals.
Number of franchise system members in 2012: 160 (78% franchisors)
Sources of association income: membership fees (50%), fair/conferences (40%),
training (10%)
Composition of the Board of Directors: franchisors, master franchises, representatives of franchisees
Chairman:
Mr. Rene PREVOST, Speedy
Délégué Generale: Mrs. Chantal ZIMMER
FFF's assets: services to members; multiple conferences, seminars including annual Legal conf.;
legal database; 2 FFF-owned franchise exhibitions (Paris & Marseille); 2 franchise award schemes; FFF's
Franchise Academy; co-created university masters in franchising; annual scientific research (available
on the FFF site); FFF publications: (Newsletter (REZO)), annual Report/Directory ("Toute la Franchise");
publication of books; close cooperation with UBIFRANCE (export); close collaboration with major banks to
finance franchises; FFF's Mediation Committee; cooperation with the Arbitration Chamber of Paris (CAP);
Commission of Mediation Franchise-Consumers (MFC); annual Franchise Awareness Week; collaboration
with the Chambers of Commerce & Industry; collaboration with vibrant franchise media (printed, on-line).
EFF • 25
Germany - Franchise Review
GERMAN FRANCHISE
ASSOCIATION
Deutscher Franchise-Verband
e.V (DFV)
www.franchiseverband.com
Germany is an EU Member State
since January 1, 1958.
Member of:
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
Franchising was introduced in Germany in 1971 with a national brand OBI and an
American brand McDonald's.
2000
2007
2008
2009
2010
2011
735
910
950
980
980
990
37.000
55.000
57.000
61.000
65.500
66.900
346.500
441.000
450.000
459.000
463.000
496.000
22,0
41,0
47,0
44,0
55,0
64,4
80%
80%
80%
In blue: cross-referenced in tables below
Number of distinct franchise brands
Number of franchised points of sale/business
(not company-owned)
Employment in the above POS/business
(including self-employed) estimated
Turnover for the above POS/business
(in bn Euros)
Proportion of domestic brands (in %)
Average annual growth of franchise brands: Average annual growth of POS: Average annual growth of employment:
Average annual growth of turnover: 2007-2011:
2007-2011:
2007-2011:
2007-2011:
2,2%
5,0%
7,5%
12,6%
2000-2011: 2,9%
2000-2011: 6,7%
2000-2011: 3,6%
2000-2011: 16,1%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Div. #
Association classification
S
96
Other personal service activities
G
47
Retail trade except motor vehicles/motorcycles
I
55
Accommodation
I
56
Food & beverage service activities
X
NACE
Rev. 2
NACE Rev. 2 categories
Incl. mainly Services- trades,crafts (ie.
N 81 services to buildings & landscapes)
Other (unspecified)
# franchise
brands/systems
2009
2010
2011
S 96
455 (46%)
G 47
317 (32%)
I 55
149 (15%)
# franchised POS/outlets
2009
2010
61.000
65.500
2011
# employees in Total
2009
2010
2011
Turnover in POS (bn €)
2009
2010
2011
44,0
55,0
64,4
I 56
X
26 • EFF
TOTAL
69 (7%)
980
980
990
66.900 459.000 463.000 496.000
Baltic
Sea
North Sea
0
75
150 km
NETH.
Where do domestic brands expand to
(list 5 countries from most to least) ?
Austria, Switzerland, the Netherlands,
France, Poland.
POL.
Berlin
Where do foreign brands come from (list 5
countries from most to least) :
USA, Austria, Switzerland,
the Netherlands, France.
GERMANY
CZECH
REPUBLIC
FRANCE
AUSTRIA
SWIT.
Modes of entry of foreign franchises:
(listed by order of preference from the following modes:
direct franchising, subsidiary, area development, master
franchising, joint venture)
1. direct franchising, 2. subsidiary,
3. master franchising,
4. area development, 5. joint venture.
German Brands (5 first ones):
OBI, Fressnapf, Engel & Völkers, BackWerk, VAPIANO
Self-Regulation:
DFV members commit to respecting the European Code of Ethics for Franchising;
DFV-System-Check, a franchise accreditation scheme available to all franchises
established in Germany, and mandatory for DFV members.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010
on the application of Article 101(3) of the Treaty on the Functioning of the EU to
categories of vertical agreements and concerted practices.
ASSOCIATION INFORMATION (DFV)
Not-for-profit organization founded in 1978, in Munich, now established in Berlin.
Main categories of membership: franchisors, master franchises, professionals.
Number of members in 2012: 273 (franchisors, master franchises, professionals)
Sources of association income: membership fees (100%)
Composition of the Board of Directors: franchisors & master franchisees
Chairman:
Dr. h.c. Dieter FRÖHLICH, Musikschule Fröhlich
Managing Director: Mr. Torben L. BRODERSEN
DFV's assets:
Accreditation: DFV-System-Check; education: Deutsches Franchise-Institut GmbH (DFI), rich
website with different tools for users (e.g. System locator), franchise award scheme, annual
Franchise Forum (conference), cooperation with Center for Franchising & Cooperation of the
University of Munster; higher education: CCI training for Franchise-Manager, WKS School for
Business (franchise business program), publications: DFV-Newsletter, Franchise-Ratgeber
(annual Guidebook), Franchise-Despesche (political dispatch); Verzeichnis der FranchiseWirtschaft (catalogue), Franchise-Erfolge (magazine); portals: franchiseportal.de, franchisenet.de; annual franchise exhibition: Start Messe; DFV-based Legal database (laws and case
law); Franchise Law Newsletter; Bank support in the form of public guarantees for franchise
start-ups: Bürgschaftsbanken, KfW Mittelstandsbank; Deutsche Bank, Sparkassen appreciate
franchise clients that abide by the DFV-System-Check.
EFF • 27
Greece - Franchise Review
GREEK FRANCHISE
ASSOCIATION (GFA)
Hellas Franchise
www.franchising.gr
Greece is an EU Member State since
January 1, 1981.
Member of:
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
Franchising started in Greece in 1980 with a national brand by the name of neoset group.
2007
In blue: cross-referenced in tables below
2008
Number of distinct franchise brands
Number of franchised points of sale/business (not company-owned) 11.650
12.796
2009
2010
2011
563
450
456
12.048
12.084
11.113
Employment in the above points of sale/business
(including self-employed) (estimated)
Turnover for the above points of sale/business (in bn Euros)
Proportion of domestic brands (in %)
69,8%
Average annual growth of franchise brands: Average annual growth of points of sale: Average annual growth of employment:
Average annual growth of turnover:
2009-2011: -9,4%
2007-2011: -1,2%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
G
47
Retail trade except for motor vehicles and motorcycles
Clothing (29%), misc.(15%)
I
56
Food and beverage service activities
Food & restaurants (11%)
P
85
Education
10,3%
G
45
retail trade, repair of motor vehicles and motorcycles
L
68
Real estate activities
M
69, 70, 74
Professional scientific and technical activities
Q
86
Human health activities
S
94
Activities of membership organisations
S
96
Other personal services activities
NACE Rev. 2
28 • EFF
Association classification
NACE Rev. 2 categories
# franchise
brands/systems
# franchised POS/outlets
2009
2010
2011
2009
2010
2011
G 47
288
241
233
5898
5845
5174
I 56
93
63
75
2691
2656
2599
P85
52
48
43
1980
2065
1929
G45,L68, M
85
62
68
1087
1087
1019
Q86, S94, S96
45
36
37
392
431
392
TOTAL
563
450
456
12.048
12.084
11.113
Especially Services: 34,7%
# employees in Total
2009
2010
2011
Turnover in POS
(bn €)
2009
2010
2011
BULGARIA
MACEDONIA
TURKEY
ALBANIA
GREECE
TURKEY
Athens
Aegean
Sea
Ionian
Sea
Where do domestic brands expand to
(list 5 countries from most to least) ?
15 national brands to Eastern
Europe, Balkans, Cyprus, Middle
East, Russia, Turkey, Germany.
Where do foreign brands come from
(list 5 countries from most to least) :
Italy, US, Germany, France.
Modes of entry of foreign franchises:
0
50 100 km
Mediterranean Sea
Greek Brands (5 first ones):
(listed by order of preference from the following
modes: direct franchising, subsidiary, area
development, master franchising, joint venture)
1. master franchising, 2. area
development, 3. subsidiary, 4. direct
franchising, 5. joint venture.
AXON, Gregory's, EVROGNOSI
Self-Regulation:
GFA members commit to respect the European Code of Ethics for Franchising).
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (GFA)
Not-for-profit organization founded in 1996 in Athens.
Main categories of membership: franchisors, master franchises, professionals
Number of franchise system members in 2012: 75 (60% franchise systems)
Sources of association income 2011: membership fees (80%), fair & conferences
(20%)
Composition of the Board of Directors: franchisors, professionals
Chairman:
Mr. Petros PETRIDIS, AXON Language School
Managing Director: Mr. Sotiris YANAKAKIS
GFA assets:
Lobbing with the government and other business associations; collaboration with
other franchise associations and chambers of commerce worldwide; providing
mediation services to all franchisors ,members of the GFA or not; newsletters;
conferences; endorse the annual franchise exhibition organized by KEM S.A in
Athens; diverse franchise media.
EFF • 29
Hungary - Franchise Review
HUNGARIAN FRANCHISE
ASSOCIATION
Magyar franchise szövetség
(mfsz)
www.franchise.hu
Hungary is an EU Member State
since May 1, 2004.
Currency: Forint; 1 E ~ 283 HUF
Member of:
FRANCHISE MARKET INFORMATION:
Franchising was introduced in Hungary in 1987 with the American brand McDonald’s.
2007
In blue: cross-referenced in tables below
2008
2009
2010
2011
330
350
350
361
361
Number of franchised points of sale/business outlets
17.000
18.000
19.000
20.000
20.000
Employment in the above POS/business outlets (including
self-employed)
92.000
100.000
100.000
100.000
100.000
55%
55%
60%
70%
70%
Number of distinct franchise brands
Turnover for the above points of sale/business
(in bn Euros)
Proportion of domestic brands (in %)
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment: Average annual growth of turnover:
2007-2011: 2,3%
2007-2011: 4,2%
2007-2011: 2,2%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
NACE
Rev. 2
NACE Rev. 2 categories
Association classification
I
56
Food & beverage service activities
Fast food
G
47
Retail trade except motor vehicles & motorcycles
Clothing, fashion
S
96
Other personal service activities
Q
86
Human health activities
H
52
Warehousing & support activities for transportation
# franchise
brands/systems
2009
2010
I 56
180
G 47
170
S 96
45
2011
Fitness, beauty
# franchised POS/outlets
2009
2010
2011
# employees in Total
2009
2010
2011
Q 86
H 52
TOTAL
30 • EFF
25
350
361
361
19.000 20.000 20.000 100.000 100.000 100.000
Turnover in POS (bn €)
2009
2010
2011
UKRAINE
SLOVAKIA
AUSTRIA
Budapest
ROMANIA
HUNGARY
0
CROATIA
50
YUGOSLAVIA
100 km
Where do domestic brands
expand to (list 5 countries
from most to least) ?
Romania, Poland, Slovakia,
Croatia, Czech Republic.
Where do foreign brands come
from (list 5 countries from
most to least) :
USA, Germany, Spain,
France, Italy.
Modes of entry of foreign franchises:
(listed by order of preference from the following modes: direct franchising, subsidiary, area development, master
franchising, joint venture)
1. direct franchising, 2. master franchising, 3. joint-venture, 4. subsidiary.
Hungarian Brands (by order of number of franchised outlets):
FORNETTI, DIEGO, MOL, CO-OP, T-COM
Self-Regulation:
HFA members commit to respecting the European Code of Ethics for Franchising
as well as the HFA's Pre-contractual Disclosure requirements.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices; national competition laws for specific industries.
ASSOCIATION INFORMATION (MFSZ)
Not-for-profit organization created in 1991 in Budapest, Hungary.
Main category of membership: franchise companies, both franchisor and franchisee
companies (1 franchisee company in 2012).
Number of members in 2012: 50 (70% franchise systems)
Sources of association income: membership fees (85%), conferences/seminars ;
(10%), publications (5%)
Composition of the Board of Directors: franchisors only
Chairman
Mr. László MURÁNYI, COOP Hungary Zrt
CEO
Dr. Katalin MANDEL
MFSZ assets:
The Hungarian government adopted in 2011 its New Széchenyi Plan and Growth &
Stability Program aimed at growing the economy. Franchise networks that abide by
the European Code of Ethics are eligible to tender for EU/government financial
support programs.
MFSZ: focused on government lobbying, communication: website, social media,
publications, etc.
EFF • 31
Italy - Franchise Review
Italian Franchise
Association
Associazione Italiana del
Franchising (AIF)
www.assofranchising.it
Italy is an EU Member State
since January 1, 1958.
Member of:
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
Franchising was started in Italy in 1970, with the Italian brand GAMMA d.i.
2007
2008
2009
2010
2011
817
852
869
883
885
Number of franchised POS/business outlets
52.725
53.434
53.313
54.013
54.096
Employment in the above POS/business outlets
(including self-employed) (estimated)
182.908
182.215
180.525
186.409
188.222
Turnover for the above points of sale/business
(in bn Euros)
18,2
21,4
21,8
22,2
22,3
Proportion of domestic brands (in %)
90%
90%
90%
89,5%
85%
In blue: cross-referenced in tables below
Number of distinct franchise brands
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover: 2007-2011: 2007-2011: 2007-2011:
2007-2011:
2,0%
0,7%
0,8%
9,7%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
Association classification
I
56
food & beverage services
Food distribution:26%
N
79
Travel agency/tour operator reservation services etc.
9%
L
68
Real Estate services
6%
K
64
Financial service activities (credit)
S
G
NACE
Rev. 2
NACE Rev. 2 categories
47
Services
Spec. prod/health/legal: 9%
Retail trade except motor vehicles & motorcycles
Clothing, fashion: 7%
# franchise
brands/systems
2009
2010
2011
869
883
885
# franchised POS/outlets
2009
2010
2011
# employees in Total
2009
2010
2011
Turnover in POS (bn €)
2009
2010
2011
21,8
22,2
22,3
I 56
N 79
L 68
K 64
S
G 47
32 • EFF
TOTAL
53.313 54.013 54.096 180.525 186.409 188.222
LICHT.
SWITZERLAND
AUSTRIA
SLOVENIA
ITALY
HUNGARY
CROATIA
BOSNIA
AND
HERZEGOVIA
SAN MAR.
FRANCE
Adriatic Sea
Roma
ALGERIA
TUNISIA
Where do foreign brands come from
(list 5 countries from most to least) :
USA, France, Spain.
Modes of entry of foreign
franchises:
Tyrrhenian Sea
SARDEGNA
Mediterranean Sea
Where do domestic brands expand
to (list 5 countries from most to
least) ?
Spain, France, Germany, UK, USA.
(listed by order of preference from the following
modes: direct franchising, subsidiary, area
development, master franchising, joint venture)
SICILIA
0
50 100 km
MALTA
1. master franchising,
2. direct franchising.
Italian Brands (5 , by order of
number of franchised outlets):
Tecnocasa, Domotecnica, Calzedonia, Punto 187,
Segafredo, Intimissimi, Mail Boxes Etc (MBE)
Self-Regulation:
AIF members commit to respecting the European Code of Ethics for Franchising as well
as to an AIF Code of Ethics wich makes reference to the Franchise law (see below).
National Legislation:
Law + Decree on Pre-contractual disclosure for networks of commercial affiliated partners
(which includes franchising): Legge 6 maggio 2004 no. 129 : Norme per la disciplina
dell’affiliazione commercial; Decreto 2 settembre 2005, N° 204; Regolamento Recante
Norme per la Disciplina Dell’Affiliazione commerciale du cui all’articolo 4,comma 2, della
legge 6 maggio 2004, N° 129.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3) of the
Treaty on the Functioning of the EU to categories of vertical agreements and concerted
practices.
ASSOCIATION INFORMATION (AIF)
Not-for-profit organization founded in 1971in Milano.
Main categories of membership: franchisors, master franchises, professionals.
Number of franchise system members in 2012: 213 (70% franchise systems)
Sources of association income: membership fees (70%), fair/conferences/marketing (29%),
training (1%-free for members)
Composition of the Board of Directors: franchisors, master franchises
Chairman:
Mr. Graziano FIORELLI, Mail Boxes Etc. (MBE)
Secretary General: Mr. Italo BUSSOLI
AIF assets:
AIF's assets: own on-line franchise exhibition (www.webfranchisingexpo.it); long-term annual
franchise surveys; many services to members; annual conferences; Financing of franchises:
AIF Blue Stamp accreditation system for members in relation with BNL-BNP Paribas; collaboration with UBI Banca-Centrobanca; access to regional financing; Franchising Yearbook;
recruitment Road Show; Franchise press: www.azfranchising.it; www.infofranchising.it;
www.betheboss.it; www.annuariodelfranchising.it; www.cliccafranchising.it; Governmentsupport program for unemployed who wish to become franchisees: INVITALIA.
EFF • 33
the Netherlands - Franchise Review
Netherlands Franchise
Association
Nederlandse Franchise
Vereniging (NFV)
www.nfv.nl
The Netherlands is an EU Member State
since January 1, 1958.
Member of:
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
Franchising started in the Netherlands in 1948 with a Dutch book-store brand, bruna.
2000
2007
2008
2009
2010
2011
395
676
687
692
714
739
Number of franchised points of sale/business
(not company-owned)
15.200
28.219
28.466
29.021
29.509
29.781
Employment in the above POS/business
(including self-employed)
150.500
245.576
255.201
258.808
257.361
270.300
11,6
29,7
30,3
29,7
30,2
31,3
85%
85%
In blue: cross-referenced in tables below
Number of distinct franchise brands
Turnover for the above points of sale/business
(in bn Euros)
Proportion of domestic brands (in %)
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover:
2007-2011:
2007-2011:
2007-2011:
2007-2011:
2,3%
1,4%
2,5%
1,8%
2000-2011: 17,0%
2000-2011: 96,0%
2000-2011: 80,0%
2000-2011:170,0%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID
NACE Rev. 2 categories
Association classification
G
47
Retail trade except mot. veh. & motorcycles
Food & non food: 39%
I
55
Accommodation
Hospitality: 11,5%
I
56
food & beverage service activities
H,J,K,L,M
Services
Business services: 41%
P,Q, R,S
Services
Education, health, fitness, senior care: 8,5%
NACE
Rev. 2
34 • EFF
Div. #
# franchise
brands/systems
# franchised POS/outlets
2009
2010
2011
2009
2010
G 47
280
277
287
16.302 16.068
2011
# employees in Total
2009
2010
2011
Turnover in POS (bn €)
2009
2010
2011
15.997 178.262 171.809 182.800 22.118
22.367
23.110
I 55,56
82
86
85
2.137
2.160
2.305
32.800 34.534 34.700
1.470
1.663
1.770
H,J,K,L,M,
P,Q,R,S Services
270
286
304
8.130
8.736
8.888
35.045
37.500
3.849
3.833
4.007
Other
60
65
63
2.452
2.545
2.591
12.700 13.443 15.300
2.233
2.317
2.368
TOTAL
692
714
739
29.021 29.509 29.781 258.808 257.362 270.300
29,6
30,2
31,2
37.576
0
Where do domestic brands expand to
(list 5 countries from most to least) ?
Germany, Belgium, France.
25 50 km
North Sea
Where do foreign brands come from (list 5
countries from most to least) :
Germany, Belgium, France, UK and USA.
Amsterdam
NETHERLANDS
GERMANY
Modes of entry of foreign franchises:
(listed by order of preference from the following modes:
direct franchising, subsidiary, area development, master
franchising, joint venture)
1. master franchising, 2. direct
franchising, 3. joint Venture,
4. area development, 5. subsidiary.
BELGIUM
Dutch Brands (5 first ones):
hunkemöller, PEARLE, HEMA, the alwaysbemobile company,
BLOKKER
Self-Regulation:
NFV members commit to respect the European Code of Ethics for Franchising.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (NFV)
Not-for-profit organization founded 1972.
Main categories of membership: franchisors, master franchises, professionals.
Number of franchise system members in 2012: 259 (77% franchisors, master
franchises)
Sources of association income 2011: membership fees (83%), marketing (6%),
sale of NFV publications (5%), other (6%)
Composition of the Board of Directors: franchisors, master franchises, professionals
Chairman:
Mr. Will van den HOOGEN
Managing Director: Mr. Jos BURGERS
NFV assets:
NFV System Check; every 5 years, re-accreditation check of the franchise agreements of the NFV members; NFV pre-contractual disclosure checklist, franchise
contract checklist, franchise master classes, in-house publications: franchise booklets, NFV Bulletin; specialized press: "Franchise +"; annual franchise exhibition:
"onderneem't"; Government guarantee schemes for start-up enterprises, including
franchising.
EFF • 35
Poland - Franchise Review
Polish Franchise
Organisation (PFO)
Polska Organizacja
Franczyzodawców (POF)
http://franchise.org.pl
Poland is an EU Member State
since May 1, 2004.
Member of:
Currency: Polish Zloty (PLN); 1 E ~ 4.19 PLN
FRANCHISE MARKET INFORMATION:
Franchising started in Poland in 1989, with the French brand YVES ROCHER.
2007
2008
2009
2010
2011
2012
387
491
584
697
746
820
Number of franchised POS/business (not
company-owned)
22.450
26.781
32.589
37.218
42.522
47.750
Employment in the above POS/business
(including self-employed) (estimated)
157.000
187.500
212.000
259.000
301.000
338.000
Turnover for the above points of sale/
business (in bn Euros)
18,2
20,4
22,7
24,5
25,7
28,1
Proportion of domestic brands (in %)
71%
69%
72%
74%
74%
74%
In blue: cross-referenced in tables below
Number of distinct franchise brands
Average annual growth of franchise brands: Average annual growth of points of sale: Average annual growth of employment:
Average annual growth of turnover: 2007-2011:
2007-2011:
2007-2011:
2007-2011:
5,6%
5,9%
6,0%
6,9% Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
I
NACE
Rev. 2
36 • EFF
Association classification
NACE Rev. 2 categories
55,56
Accommodation & Food service activities
G
45
Retail/repairs motor vehicles & motorcycles
G
47
Retail trade except motor vehicles & motorcycles
S
96
Other personal services
N
81
Services to buildings & landscapes
N
82
Office/business support services
# franchise
brands/systems
# franchised POS/outlets
Food & beverage
# employees in Total
Turnover in POS (bn €)
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
I 55/56
79
90
117
1.678
1.699
1.883
13.745
16.762
20.878
0,65
0,75
0,72
G 45/47
378
456
440
26.852 30.651
33.951
183.074
223.261
260.226
21,56
23,01
24,18
S 96
94
116
144
3.692
4.454
6.103
14.124
17.224
17.930
0,48
0,70
0,69
N 81/82
33
35
45
367
414
585
1.150
1.403
1.976
0,04
0,06
0,08
TOTAL
584
697
746
22,73
24,52
25,67
32.589 37.218 42.522 212.100
258.650 301.000
RUSSIA
LITHUANIA
POLAND
BELAR.
Warsaw
GERMANY
UKR.
0 50 100 km
CZECH-REPUBLIC
Where do domestic brands
expand to (list 5 countries
from most to least) ?
Czech Rep., Slovakia,
Lithuania, Ukraine, Russia.
(note: 72 Polish brands have developed
abroad) Polish Brands operating abroad :
INDECO, INGLOT, ATLANTIC, Vacu
Fit,RESERVED
Where do foreign brands come
from (list 5 countries from most
to least) :
Italy, Germany, France, USA,
Great Britain, Spain.
SLOVAKIA
Modes of entry of foreign franchises: (listed by order of preference from the following modes:
direct franchising, subsidiary, area development, master franchising, joint venture)
1. master franchising (49,2%), 2. subsidiary (35,4%), 3. direct franchising
(7,9%), 4. area development (5,8%), 5. joint venture (1,6%).
Polish Brands (5, by order of number of franchised outlets):
ABC SKLEPY, LEWIATAN, Nasz Sklep, eLDe, GROSZEK
Self-Regulation:
PFO members commit to respecting the European Code of Ethics for Franchising.
EU Legislation of relevance to Franchising:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (PFO)
Not-for-profit organization created in May 2000 in Warsaw. Main categories of
membership: franchise and master franchise companies.
Number of members in 2012: 35 (franchise systems only)
Sources of association income: membership fees (95 %), fair/conferences (5%).
Composition of the Board of Directors: franchisors, master franchises, 1 professional.
Chairman:
Mrs. Monika DABROWSKA, McDonald´s, Poland
Secretary General: Mr. Michal SKUBISZEWSKI
PFO assets: Poland has not suffered as badly as the rest of the EU from the financial
and economic crisis; franchising is developing very well; commercial banks that lend to
franchise businesses: FM Bank, Deutsche Bank; specialized franchise press: Wlasny
Biznes Franchising; annual Franchise expo (franchiseexpo.pl).
EFF • 37
Portugal - Franchise Review
PORTUGUESE FRANCHISE
ASSOCIATION
Associação Portuguesa
da Franchise (APF)
www.apf.org.pt
Portugal is an EU Member State
since January 1, 1986.
Member of:
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
2007
2008
2009
2010
2011
501
521
524
570
578
Number of franchised points of sale/business (not
company-owned)
11.271
12.206
13.000
12.016
11.760
Employment in the above POS /business (including
self-employed) (estimated)
66.860
68.960
69.536
73.143
70.151
Turnover for the above points of sale/business
(in bn Euros)
4,8
5,0
5,0
7,8
5,3
Proportion of domestic brands (in %)
51%
53%
59%
59%
62%
In blue: referenced in the tables below
Number of distinct franchise brands
Average annual growth of franchise brands: Average annual growth of points of sale: Average annual growth of employment:
Average annual growth of turnover: 2007-2011: 4,5%
2007-2011: 2,4%
2007-2011: 3,0%
2007-2011: 7,0% Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
38 • EFF
Association classification
NACE Rev. 2 categories
NACE
Rev. 2
Section
ID,
Division
#
2009
2010
2011
TOTAL
524
570
578
# franchise
brands/systems
# franchised POS/outlets
2009
2010
2011
13.000 12.016 11.760
# employees in Total
Turnover in POS (bn €)
2009
2010
2011
2009
2010
2011
69.536
73.143
70.151
5,0
7,8
5,3
Where do domestic brands expand to (list
5 countries from most to least) ?
Spain, Europe, PALOP (Portuguese speaking
African countries), Middle East, Latin America.
Where do foreign brands come from (list 5
countries from most to least) :
Spain, USA, France, Italy, UK, Latin America.
PORTUGAL
SPAIN
Lisboa
Modes of entry of foreign franchises: (listed by order
of preference from the following modes: direct franchising, subsidiary,
area development, master franchising, joint venture)
1. master franchising, 2. direct franchising,
3. area development, 4. subsidiary, 5. license
agreements.
Portuguese Brands (5 first ones):
OPTIVISÃO, VALORES, OURINVEST,
NÃO+PÊLO, PARFOIS
0
50
100 km
Self-Regulation:
APF members commit to respect the European
Code of Ethics for Franchising.
EU Legislation of relevance to Franchising:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (APF)
Not-for-profit organization founded in March 1988 in Lisbon by international
franchisors.
Categories of membership: franchisors, master franchises, professionals
Number of franchise system members in 2012: 24 (30% franchisors)
Sources of association income 2011: membership fees 100%
Composition of the Board of Directors: franchisors, master franchises,
Chairman:
Mr. Mr. Paulo ANTUNES, LDC, S.A.
Vice-president and Executive Director: Mrs Cristina Matos, BRODHEIM Grupo, S.A.
Vice-president: Mr. Ricardo Sousa, Century21, Lda
AFP assets: Export missions to Spanish and Portuguese speaking markets in the
frame of FIAF, the Ibero-American Franchise Federation; focus on the Brazilian market;
working with support of BES – Bank Espirito Santo.
EFF • 39
Serbia - Franchise Review
SERBIAN FRANCHISING
DEVELOP. ASSOC.
Srpsko udruženje za razvoj
franšizinga
www.franchiseserbia.rs
Candidate to the EU.
Member of:
Currency: Serbian Dinar (RSD);
1 E ~ 112.34 RSD
FRANCHISE MARKET INFORMATION:
Franchising was introduced in Serbia in 1969 with the US brand, DINERS Credit Card.
2007
In blue: cross-referenced in tables below
2008
2009
2010
2011
106
Number of distinct franchise brands
Number of franchised points of sale/business (not
company-owned)
Employment in the above POS /business (including
self-employed)
No info. available
Turnover for the above points of sale/business
(in bn Euros)
Proportion of domestic brands (in %)
Average annual growth of franchise brands: Average annual growth of points of sale: Average annual growth of employment:
Average annual growth of turnover: Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
Association classification
NACE Rev. 2 categories
No info. available
NACE
Rev. 2
Section
ID,
Division
#
TOTAL
40 • EFF
# franchise
brands/systems
2009
2010
2011
106
# franchised POS/outlets
2009
2010
2011
# employees in Total
2009
2010
2011
Turnover in POS (bn €)
2009
2010
2011
HUNGARY
0
50
100 km
ROMANIA
CROATIA
Where do foreign brands come from (list 5
countries from most to least) :
USA, UK, Italy, Germany, Slovenia.
Belgrade
BOSNIA AND
HERZEGOVINA
Modes of entry of foreign franchises:
SERBIA
(listed by order of preference from the following modes:
direct franchising, subsidiary, area development, master
franchising, joint venture)
MONTENEGRO
Adriatic Sea
ALBANIA
Where do domestic brands expand to
(list 5 countries from most to least) ?
Bosnia and Herzegovina, Montenegro,
FYRO Macedonia, Romania, Bulgaria.
BULGARIA
MACEDONIA
1. direct franchising, 2. master
franchising, 3. area development,
4. subsidiary, 5. joint venture.
Serbian Brands:
MINI PANI, RAKIA BAR, ADORE CHOCOLATE ,FLY FLY TRAVEL,
KONTIKI, FILIP TRAVEL, Dve Šmizle (City Fashion), LUNA,
PS FASHION, Arcus Club Fit&Relax, JP PTT Saobraćaj,
EXTREME INTIMO, OFFICE 1 SUPERSTORE, MEGALINE.
Self-Regulation:
SURF members commit to respecting the European Code of Ethics for Franchising.
National franchise-specific regulation: None
EU Legislation of relevance to Franchising:
As a candidate to EU membership, Serbia will transpose EU legislation, including
REGULATION No 330/2010 on Vertical Agreements.
ASSOCIATION INFORMATION (SURF)
Not-for-profit organization created in 2009 in Belgrade, Serbia.
Main category of membership: franchise and master franchise companies.
Number of members in 2012: 7 (45% of franchise systems in relation to turnover)
Sources of association income: membership (85%), exhibition (5%), other services
(10%)
Composition of the Board of Directors: representatives of the head franchise
company
Chairman Board of Directors: Mr. Goran KARIC, DELTA SPORT
President of Executive Board: Mr. Dusan SIKIMIC, DINERS
Manager:
Mrs. Katarina BLAZIC
SURF assets: functions in close collaboration with the Franchise Centre of the Serbian
Chamber of Commerce in Belgrade and benefits from strong government support..
EFF • 41
Slovenia - Franchise Review
SLOVENIAN FRANCHISE
ASSOCIATION (SFA)
Sekcija za franšizing
www.franchise-slovenia.net
Member of the EU since May 1, 2004.
Member of:
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
Franchising was introduced in Slovenia in 1988 by the American brand HERTZ, soon
followed by domestic brands in retailing.
In blue: cross-referenced in tables below
Number of distinct franchise brands
Number of franchised points of sale/business (not
company-owned)
2007
2008
2009
2010
2011
103
106
107
103
106
1.213
1.525
1.527
1.532
1.540
47%
52%
51%
50%
48%
Employment in the above points of sale/business (including
self-employed)
Turnover for the above points of sale/business
(in bn Euros)
Proportion of domestic brands (in %)
Average annual growth of franchise brands:
Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover:
2007-2011: 0,75%
2007-2011: 0,89%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
NACE
Rev. 2
NACE Rev. 2 categories
Association classification
G
47
Retail trade except motor vehicles & motorcycles
Food, DIY
R
93
Sports/Amusement/Recreation activities
Fitness
I
56
Food & beverage service activities
N
79
Travel agency, tour operator reservation service, etc.
S
96
Other personal services activities
# franchise
brands/systems
2009
2010
2011
# franchised POS/outlets
2009
2010
2011
# employees in Total
2009
2010
2011
Turnover in POS (bn €)
2009
G 47
R 93
No reliable information.
I 56
N 79
S 96
42 • EFF
107
103
106
1.527
1.532
1.540
No information
2010
2011
0
50
100 km
AUSTRIA
ITALY
HUN.
Ljubljana
SLOVENIA
CROATIA
Adriatic
Sea
BOSNIA AND
HERZEGOVINA
Where do domestic brands expand to
(list 5 countries from most to least) ?
Croatia, Serbia, Bosnia & Herzegovina,
Austria, Italy.
Where do foreign brands come from (list
5 countries from most to least) :
SERBIA
Italy, Croatia,
Austria, Hungary,
France, USA.
Modes of entry of foreign franchises:
(listed by order of preference from the following modes:
direct franchising, subsidiary, area development, master
franchising, joint venture)
No information.
Slovenian Brands (5, by order of number of franchised outlets):
MERCATOR, TUŠ, MITJA Hair Team, SIMPLE, LINEA SNELLA
Self-Regulation:
SFA members commit to respecting the European Code of Ethics for Franchising.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (SFA)
Not-for-profit organization created in 1998 in Ljubljana, Slovenia.
Main category of membership: franchise and master franchise companies.
Number of members in 2012: 25 (50% franchise systems)
Sources of association income: membership fees (60%), conferences/seminars
(10%), unpaid volunteer work (30%).
Composition of the Board of Directors: representatives of the head franchise
company
Chairman:
Mrs. Barbara HUMAR GERBEC, LINEA SNELLA Co.d.o.o
Secretary General: Mr. Igor PAVLIN
SFA assets:
Very focused on educational programs for present and future franchisors and
franchisees; involved in entrepreneurial programs for college-level students;
organizes conferences & seminars on franchising; active with EU-subsidized
projects; association housed at the Slovenian Chamber of Commerce (Trgovinska
Zbornica Slovenije).
EFF • 43
Spain - Franchise Review
Spanish Franchising
Association
Asociación española de
franquiciadores (aef)
www.franquiciadores.com
www.calidadenfranquicia.com
www.abogadosdefranquicia.com
Member of:
Spain is an EU Member State
since January 1, 1986.
Currency: Euro (E)
FRANCHISE MARKET INFORMATION:
Franchising was introduced in Spain in 1957 by the French brand RODIER.
In blue: cross-referenced in tables below
Number of distinct franchise brands
Number of franchised points of sale/business (not company-owned)
Employment in the above points of sale/business (including self-employed) (estimated)
Turnover for the above POS/business (in bn Euros)
Proportion of domestic brands (in %)
Average annual growth of franchise brands:
Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover:
2007
2008
2009
2010
2011
850
875
919
934
947
59.182 58.305 57.139 56.444 58.279
234.415 235.929 235.075 231.603 240.713
29,0
29,7
26,8
26,3
27,8
81,2%
81,8%
81,3%
81%
81%
2007-2011: 10,1%
2007-2011: -1,5%
2007-2011: 14,0%
2007-2011: 20,7%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID
Division #
NACE Rev. 2 categories
2011 - # brands/position
G
45
Retail/repair motor vehicles & motorcycles
3 (41 brands)
G
47
Retail trade except motor vehicles & motorcycles
1 (613 brands)
H
49
Transport & storage
9 (10 brands)
I
56
Food & Beverage service activities
2 (154 brands)
L
68
Real estate activities
7 (25 brands)
M
74
Other prof., scientif., tech., services
4 (28 brands)
N
79
Travel agencies
8 (20 brands)
P
85
education
5 (28 brands)
R
93
Arts, Entertainment, Recreation (Sports)
6 (28 brands)
947
NACE
Rev. 2
44 • EFF
# franchise
brands/systems
# franchised POS/outlets
# employees in POS
Turnover in POS (bn €)
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
G 45
41
40
41
2.293
2.173
2.209
6.880
6.349
6.367
702,3
655,1
632,8
G 47
588
603
626
31.035
31.060
33.414
126.913 123.652 138.428 12.814,9 13.989,9 15.738,0
H 49
10
11
10
2.547
2.481
2.429
13.614
13.652
12.255
1.522,4
1.572,6
1.449,2
I 56
149
153
154
10.559
10.590
10.325
59.503
60.779
57.715
5.230,4
5.301,1
5.471,5
204,4
L 68
26
25
25
1.330
1.461
1.272
4.698
4.829
3.843
1.192,3
243,0
M 74
26
25
28
2.052
2.048
2.099
3.994
4.194
4.797
320,0
312,7
318,5
N 79
25
23
20
4.976
4.196
4.117
12.065
10.623
9.647
2.263,8
1.637,1
1.587,2
P 85
27
28
28
1.176
1.245
1.161
3.909
4.055
3.991
267,9
272,2
265,8
R 93
27
26
15
1.171
1.190
1.253
3.499
3.470
3.670
385,5
667,7
684,4
TOTAL
919
934
947
57.139
56.444
58.279
26,8
26,3
27,8
235.075 231.603 240.713
FRANCE
Atlantic
Ocean
PORTUGAL
Where do foreign brands come from
(list 5 countries from most to least) :
France, United States, Italy,
Portugal, UK.
Madrid
SPAIN
Mediterranean
Sea
0
Where do domestic brands expand to
(list 5 countries from most to least) ?
Portugal, México, Andorra, France,
Italy, UK, Saudi Arabia, UAE,
Romania, Morrocco.
100 200 km
MOROCCO
ALGERIA
Modes of entry of foreign
franchises:
(listed by order of preference from the following
modes: direct franchising, subsidiary, area
development, master franchising, joint venture)
1. master franchising, 2. area development, 3. direct franchising, 4. subsidiary,
5. joint venture.
Spanish Brands (5, by order of turnover):
DAY (food retail), FALCON Travel (travel agency), SPAR (food
retail), MRW (courier), TELEPIZZA (food service)
Self-Regulation:
Reference: the European Code of Ethics for Franchising.
National Regulation:
- Law 7/1996, de 15 de enero, de Ordenación del Comercio Minorista, Boletín Oficial del
Estado, 15 del 17 gennaio 1996: Regulates Retail Trading including franchising; requires
disclosure obligations which targets trade and commercial enterprises and networks;
-R
oyal Decree N° 201/2010 of 26th February 2010: regulates the exercise of commercial
franchising and requires that all franchises operating in Spain (foreign & national)
register in a franchise registry.
(Note: this registration contribute to having very complete franchise statistics.)
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3) of the
Treaty on the Functioning of the EU to categories of vertical agreements and concerted
practices.
ASSOCIATION INFORMATION (AEF)
Not-for-profit organization founded in 1993 in Valencia, Spain with offices in Madrid &
Barcelona. Main categories of membership: franchise companies, master franchise
companies, collaborating partners, institutional members & honorary members.
Number of franchise system members in 2012: 182 (70% franchisors)
Sources of association income: membership fees (91%), sales 7%), grants (2%)
Composition of the Board of Directors: franchisors
Chairman:
Mr. Xavier VALLHONRAT LLURBA - Il Caffe di Roma
CEO:
Mr. Eduardo ABADÍA GONZÁLEZ
AEF assets:
Actively involved in supporting the international development of their franchise members;
AEF presence at many franchise fairs; publications, including excellent statistics (available
on-line); Co-founder of FIAF.
EFF • 45
Sweden - Franchise Review
Swedish Franchise
Association
Svensk Franchise - Svenska
Franchiseföreningen
www.svenskfranchise.se
Sweden is an EU Member State
since January 1, 1995.
Member of:
Currency: Swedish Krona SWK; 1 E ~ 8.4 SWK
FRANCHISE MARKET INFORMATION:
Franchising started in Sweden in 1932 with the Swedish brand Anticimex (pest control).
2007
2008
2009
2010
2011
350
400
550
640
700
Number of franchised points of sale/business
10.000
15.000
18.000
24.000
26.000
Employment in the above POS/business
(including self-employed) estimated
67.000
75.000
102.000
102.000
110.000
10,0
13,0
15,0
19,0
21,0
90%
80%
80%
80%
In blue: cross-referenced in tables below
Number of distinct franchise brands
Turnover for the above points of sale/business
(in bn Euros)
Proportion of domestic brands (in %)
Average annual growth of franchise brands:
Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover:
2007-2011: 19,4%
2007-2011: 28,0%
2007-2011: 14,0%
2007-2011: 20,7%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
NACE
Rev. 2
46 • EFF
NACE Rev. 2 categories
Association classification
G
47
Retail trade except motor vehicles & motorcycles
I
56
Food & Beverage service activities
Fast food
N
81
Services to buildings, landscaping, etc.
Construction
M
70
Business & management consulting
Consulting
H
49
Land and pipeline transport
Transport
# franchise
brands/systems
2009
2010
2011
# franchised POS/outlets
2009
2010
2011
# employees in Total
2009
2010
2011
Turnover in POS (bn €)
2009
G 47
287
9.800
42.000
7,8
I 56
126
4.200
18.000
3,4
N 81
49
1.400
15.000
1,3
M 70
44
1.350
12.000
1,3
H 49
44
1.250
15.000
1,2
TOTAL
550
640
700
18.000 24.000 26.000 102.000 102.000 110.000
15,0
2010
2011
19,0
21,0
Where do domestic brands expand to
(list 5 countries from most to least) ?
Denmark, Norway, Finland,
Germany, Netherlands, US.
0 50 100 km
Norwegian Sea
Where do foreign brands come from
(list 5 countries from most to least) :
US, UK, Denmark, Norway, Germany.
SWEDEN
NORWAY
FINLAND
Gulf of
Bothnia
(listed by order of preference from the following
modes: direct franchising, subsidiary, area
development, master franchising, joint venture)
1. master franchising, 2. direct
franchising, 3. Subsidiary, 4. area
development, 5. joint venture.
Vä
tt
er
n
e
r n
Stockholm
V ä
r n
Modes of entry of foreign franchises:
ESTONIA
DEN.
BalticSea
LATVIA
LITUANIA
Austrian Brands (5, by order of number of franchised outlets):
Pressbyrån, Svenska
Turistföreningen, Sibylla,
TEAM SPORTIA, Electrolux
Self-Regulation:
SF members commit to respecting the European Code of Ethics for Franchising;
SF-defined Pre-contractual checklist of information that the franchisor must
provide a prospective franchisee before signature of the contract; Quality Standard
SF-defined Accreditation system for franchise and professional members.
National Regulation:
Law on the Duty of a Franchisor to provide information (24 May 2006, Law
N° 2006:484); governement-created Committee of Ethics reserved to SF members;
decisions published on SF website.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (SFV)
Not-for-profit organization founded in 1972 in Gothenburg.
Main categories of membership: franchisors, master franchises, franchisees,
professionals.
Number of franchise system members & franchisees in 2012: 120 (80% franchisors)
Composition of the Board of Directors: franchisors, franchisees, 1 professional
Sources of association income: membership fees (90%), events/sponsoring (10%)
Chairman:
Mr. Jonas IDESTRÖM, FranchiseArchitect
Managing Director: Mr. Anders SVENSSON
SF/SFA assets: SF/SFA strongly promotes brands though SF "members-only"
website, award schemes; media, annual franchise report, conferences focused on
exchange of experience & good practice, publications.
EFF • 47
Switzerland - Franchise Review
SWISS FRANCHISE
ASSOCIATION
Schweizer Franchise Verband
(SFV)
www.franchiseverband.ch
Member of:
Switzerland is not a Member State
of the European Union.
Currency: Swiss Franc: 1 E ~ 1.2 CHF
FRANCHISE MARKET INFORMATION:
Franchising was introduced in Switzerland in the 70ies (through activities by university
professors) but took off as a serious marketing strategy in the mid 90ies.
We do not have any serious market surveys, but rather estimates as regards the
numbers of franchise brands in Switzerland. Our estimate lies between 250 – 300
brands associated with Franchising in Switzerland.
2007
In blue: cross-referenced in tables below
2008
Number of distinct franchise brands (estimate)
2009
2010
2011
250–300
250–300
250–300
Number of franchised points of sale/business
(not company-owned)
Employment in the above points of sale/business
(including self-employed) (estimated)
No serious market surveys
Turnover for the above points of sale/business
(in bn Euros)
Proportion of domestic brands (in %)
Average annual growth of franchise brands:
Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover:
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
NACE
Rev. 2
TOTAL
48 • EFF
NACE Rev. 2 categories
# franchise
brands/systems
2009
2010
2011
# franchised POS/outlets
2009
2010
2011
Association classification
# employees in Total
2009
2010
2011
Turnover in POS (bn €)
2009
2010
2011
0
50
100 km
GERMANY
AUSTRIA
FRANCE
Bern
SWITZERLAND
ITALY
Where do domestic brands
expand to (list 5 countries
from most to least) ?
Germany, France & Italy due
to the proximity of languages
and culture (test markets),
Asian markets, USA.
Where do foreign brands
come from (list 5 countries
from most to least) :
US (fast foods), France,
Germany, Italy (fashion).
Modes of entry of foreign franchises:
(listed by order of preference from the following modes: direct franchising, subsidiary, area development, master
franchising, joint venture)
1. master franchising, 2. direct franchising, 3. area development, 4.
subsidiary, 5. joint venture.
Swiss Brands (principle ones):
Swatch, MONTREUX JAZZ CAFE, Lindt Chocolate, Tally
Weijl, AMAVITA Apotheken, Valora, INTERSPORT, Kieser
Training, oprandi & partner, ParaMediForm
Self-Regulation:
SFV members commit to respect the European Code of Ethics for Franchising.
EU Legislation of relevance to Franchise contracts:
Applicable when a Swiss franchisor expands into EU markets: EU REGULATION
No 330/2010 of 20 April 2010 on the application of Article 101(3) of the Treaty on
the Functioning of the EU to categories of vertical agreements and concerted
practices,
ASSOCIATION INFORMATION (SFV)
Not-for-profit organization founded in the 70s. 2 offices: Zürich (German-speaking
community), Morges (French-speaking community).
Main categories of membership: franchisors, master franchises, professionals
Number of franchise system members in 2012: 43 franchisors, 11 sponsoring
members.
Sources of association income 2011: membership fees (almost 100 %) and some
banner advertisement on our website (members only).
Composition of the Board of Directors: franchisors
Chairman:
Mr. Theodor KEIFER, RE/MAX Switzerland
Managing Director: Dr. Christoph WILDHABER
EFF • 49
Turkey - Franchise Review
TURKISH NATIONAL
FRANCHISE ASSOCIATION
Franchise Dernegi - UFRAD
www.ufrad.org.tr
Turkey is a candidate to membership
of the European Union.
Member of:
Currency: Turkish Lire (TRY); 1 E ~ 2.21 TRY
FRANCHISE MARKET INFORMATION:
Franchising started in Turkey in 1991 with the US brand McDonald’s.
2007
In blue: referenced in the tables below
2008
2009
Number of distinct franchise brands
2010
2011
1669
1708
73%
81%
2012
Number of franchised points of sale/business
(not company-owned)
Employment in the above points of sale/business
(including self-employed) (estimated)
Turnover for the above points of sale/business (in bn Euros)
Proportion of domestic brands (in %) (average of categ. G-S)
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover: 2007-2011: 2,3%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
# franchise brands/systems
2010
% domestic
2010
2011
% domestic
2011
47
Retail/repair motor vehicles & motorcycles
951
68%
956
68%
I
55,56
Accommodation & Food Service Activities
467
81%
493
81%
L
68
Real Estate activities
31
74%
33
74%
M
70,73,74
Professional, scientific & technical activities
72
69%
71
69%
N
77-82
Admin./business & support activities
16
94%
16
94%
P
85
Education
35
86%
35
86%
Q
86,87
Human health & social work activities
40
65%
41
66%
R
90,93
Arts, entertainment & recreation
29
93%
32
94%
S
94-96
Other service activities
28
31%
31
97%
1669
Av.=73%
1708
Av.=81%
G
TOTAL
50 • EFF
NACE Rev. 2 categories
BULGARIA
0
50
100 km
RUSSIA
Black Sea
GEORGIA
GREECE
Ankara
ARMENIA
IRAN
TURKEY
Mediterranean Sea CYPRUS
SYRIA
Where do domestic
brands expand to
(list 5 countries from
most to least) ?
Germany, Saudi
Arabia, Iraq,
Azerbaijan,
Netherlands.
IRAQ
Where do foreign brands come from (list 5 countries from most to least) :
USA, France, UK, Italy.
Modes of entry of foreign franchises: (listed by order of preference from the following modes:
direct franchising, subsidiary, area development, master franchising, joint venture)
1. master franchising, 2. joint venture, 3. direct franchising, 4. subsidiary,
5. area development.
Turkish Brands (5 first ones):
·
SIMIT SARAYI, ÇILEK, ALTINBAŞ, ISTIKBAL, KOTON
Self-Regulation:
UFRAD members commit to respect the EFF's European Code of Ethics for
Franchising.
EU Legislation of relevance to Franchise contracts: no.
ASSOCIATION INFORMATION (UFRAD)
Not-for-profit organization founded in 1991 in Istanbul.
Main categories of membership: franchisors, master franchises, suppliers as
supporting members
Sources of association income 2011: membership fees (60%), Exhibition (30%),
Franchise Academy (10%)
Number of franchise system members in 2012: 98 (75 % franchise systems)
Composition of the Board of Directors: franchisors
Chairman:Dr. Mustafa AYDIN, Bil Holding, Istanbul Aydın Üniversitesi, UFRAD
Managing Director: Ms. Irem ARMAN
UFRAD assets:
Very focused on education, Franchise Academy, media presence, government relations,
international expansion, exhibition, TV Program and Quarterly Franchise Magazine;
Note: Average annual growth of employment in franchising 2007-2011: 14%
Comment: The government supports the employment of new graduates and university
students which increases employment.
EFF • 51
United Kingdom - Franchise Review
BRITISH FRANCHISE
ASSOCIATION (thebfa)
www.thebfa.org
The UK is an EU Member State
since January 1, 1973.
Member of:
Currency: GBP ; 1 E ~ 0.78 GBP
FRANCHISE MARKET INFORMATION:
Franchising started in the United Kingdom in the early 1960s, with Dyno-Rod, a
domestic brand, and SERVICE MASTER, a master franchise from the USA.
In blue: cross-referenced in tables below
Number of distinct franchise brands
Number of franchised points of sale POS /business (not
company-owned)
Employment in the above points of sale POS /business
(including self-employed) (estimated)
Turnover for the above points of sale/business (in bn GBP)
Proportion of domestic brands (in %)
Average annual growth of franchise brands: Average annual growth of points of sale:
Average annual growth of employment:
Average annual growth of turnover:
2007
2008
2009
2010
2011
809
838
845
900
929
36.200
36.600
36.500
38.600
40.100
480.000
467.000
465.000
521.000
594.000
12,4
11,4
11,8
12.4
13,4
80%
80%
80%
80%
80%
2007-2011:
2007-2011:
2007-2011:
2007-2011:
3,6%
2,6%
5,7% d espite neg. growth in '08/'09
2,0%
Franchise sectors: according to the NACE Rev. 2 classification system.
List the first 5 franchise sectors from largest in numbers of franchise systems to smallest.
Section ID Division #
N
52 • EFF
Office /business support services
N
81
Services to buildings, landscapes
G
47
Retail trade except motor vehicles & motorcycles
I
56
Food & beverage service activities
S
96
Other personal services
Other (unspecified)
# franchise
brands/systems
2009
2010
2011
# franchised POS/outlets
2009
2010
2011
N 82
161
3.900
N 81
160
4.300
G 47
123
6.400
I 56
121
8.100
S 96
109
3.900
X
255
13.500
TOTAL
Association classification
82
X
NACE
Rev. 2
NACE Rev. 2 categories
845
900
929
36.500
38.600
40.100
# employees in Total
2009
2010
2011
465.000 521.000 594.000
Turnover in POS (bn €)
2009
2010
2011
11,8
12,4
13,4
North Sea
IRELAND
UNITED
KINGDOM
London
LUXEMBOURG
0
50 100 km
FRANCE
Where do domestic brands expand to
(list 5 countries from most to least) ?
About 250 UK brands export to Ireland,
Scandinavia, the rest of Europe, North
America & the Commonwealth.
Where do foreign brands come from (list 5
countries from most to least) :
USA, Canada, Australia, New Zealand, Italy.
Modes of entry of foreign franchises:
(listed by order of preference from the following modes: direct
franchising, subsidiary, area development, master franchising,
joint venture)
1. master franchising, 2. subsidiary,
3. joint venture, 4. area development,
5. direct franchising.
UK Brands (5 first ones, not in order of size of network):
Clarks ™, COSTA Coffee, Thorntons, Dairy Crest, TONI&GUY
Self-Regulation:
BFA members (all categories) commit to respect the European Code of Ethics
for Franchising which is incorporated in the BFA's Code of Ethical Conduct which
includes the BFA's Extensions & Interpretations of the European Code of Ethics.
EU Legislation of relevance to Franchise contracts:
EU REGULATION No 330/2010 of 20 April 2010 on the application of Article 101(3)
of the Treaty on the Functioning of the EU to categories of vertical agreements
and concerted practices.
ASSOCIATION INFORMATION (BFA)
Not-for-profit organization founded in 1977 in England
Main categories of membership: Franchisors (Full Membership, Associate Membership,
Provisionally Listed Companies) Affiliated Members (franchise lawyers-consultants
etc.), Franchisees (of Franchisor members only)
Number of franchise system members in 2012: 270 franchisors (plus 110 Affiliate
professional advisors)
Composition of the Board of Directors: franchisors, professionals, franchisees
Chairman:
Mr. Mr. Michael EYRE, BLAZES Heating Solutions
Director General: Mr. Brian Smart
Sources of association income 2011: membership fees (85%), marketing & events
(10%), training (5%)
BFA assets:
Membership accreditation system aimed at promoting proper & ethical franchising
for all categories of members, including the professional affiliates; bfa website: information for all & recruitment tool for members; 2 Awards schemes; several bfa accredited
franchise expos (London (2), Birmingham, Manchester); Mediation & Arbitration
schemes; 4 major banks are BFA members; each have a dedicated franchise dept.;
70% of all franchisees and 75% of all franchisors bank with these 4 banks;
Government guarantee scheme: EFG- Enterprise Finance Guarantee scheme open
to franchising.
EFF • 53
54 • EFF
Part III
Statistical insight
into the economic
share of franchising
Sources:
For the EU: • 2012/4, EC/Eurostat-Business economy by sector NACE Rev. 2
• http://epp.eurostat.ec.europa.eu /statistics_explained/
For franchising: the 21 national franchise associations of the countries represented
in this Report
EFF • 55
The 5 Tables that follow show figures for the Franchise industry in Europe by country. The numbers
are provided by the national franchise associations of these countries. The tables allow country
comparisons, but are not correlated with Eurostat figures. This will follow in Tables 6-11.
Table 1.A: Number of distinct franchise brands/systems per country
+ average annual growth 2007-2011
Country
# of distinct FRANCHISE BRANDS/Systems Average
2007
2008
2009
2011 est.
annual
growth
420
420
2,5%
2010
1
AT-AUSTRIA
2
BE-BELGIUM
100
200
320
360
350
4,8%
3
UK-BRITAIN
809
838
845
900
929
3,6%
4
HR-CROATIA
125
150
168
175
6,6%
5
CZ-CZECH Rep.
131
137
150
168
190
9,8%
6
DK-DENMARK
180
185
188
188
1,5%
7
FI-FINLAND
220
255
265
270
270
5,4%
8
FR-France
1.137
1.229
1.396
1.477
1.569
8,5%
9
DE-GERMANY
910
950
980
980
990
2,2%
10
EL-GREECE
563
450
456
-9,4%
11
HU-HUNGARY
330
350
350
361
361
2,3%
12
IT-ITALY
817
852
869
883
885
2,0%
13 NL-NETHERLANDS
676
687
692
714
739
2,3%
14
PL-POLAND
387
491
584
697
746
4,5%
15
PT-Portugal
501
521
524
570
578
4,5%
16
RS-SERBIA
17
SI-SLOVENIA
103
106
107
103
106
0,8%
18
ES-SPAIN
850
875
919
934
947
10,1%
19
SE-SWEDEN
350
400
550
640
700
19,4%
20
CH-SWITZ.
275
275
275
21
TR-TURKEY
400
7.901
8.751
9.539
275
1.669
1.708
11.952
12.582
4,5%
In the 21 countries of this survey, one can estimate at least 12.600 distinct
franchise brands (rounded figure).
Table 1.B: Number of franchise brands of other major regions/
countries of the world, 08/2012
USA
3.000 Brazil
Canada 1.200 Mexico
Argentina
2.031 China
4.000 Australia 1.025 S. Africa
1.100 Korea
2.400
Egypt
400
300 India
1.800
Morocco
315
Philippines 1.300
Japan
56 • EFF
1.233
551
Table 2: Number of franchised points of sale/enterprises
+ average annual growth 2007-2011
Note: the assumption for this table is that the majority of points of sale correspond to single-unit
franchisees. This is a reality for much of franchising in Europe.
Country
# of FRANCHISED POINTS of SALE
(enterprises)
2007
2008
2009
2010
8.000
5,6%
11.000
54,0%
38.600
40.100
2,6%
900
1.000
2,8%
CZ-CZECH Rep.
3.476
4.366
6
DK-DENMARK
7.500
7.500
7
FI-FINLAND
3.500
4.200
4.400
4.500
4.500
6,8%
8
FR-France
47.291
50.127
53.101
58.351
62.041
8,5%
9
DE-GERMANY
55.000
57.000
61.000
65.500
66.900
5,0%
10
EL-GREECE
11.650
12.796
12.048
12.084
11.113
-1,2%
11
HU-HUNGARY
17.000
18.000
19.000
20.000
20.000
4,2%
12
IT-ITALY
52.725
53.434
53.313
54.013
54.096
0,7%
13 NL-NETHERLANDS
28.219
28.466
29.021
29.509
29.781
1,4%
14
PL-POLAND
22.450
26.781
32.589
37.218
42.522
4,4%
15
PT-Portugal
11.271
12.206
13.000
12.016
11.760
2,4%
16
RS-SERBIA
17
SI-SLOVENIA
1.213
1.525
1.527
1.532
1.540
0,9%
18
ES-SPAIN
59.182
58.305
57.139
56.444
58.279
-1,5%
19
SE-SWEDEN
10.000
15.000
18.000
24.000
26.000
28,0%
20
CH-SWITZ.
21
TR-TURKEY
433.643
460.498
7,8%
est.
500.000
1
AT-AUSTRIA
2
BE-BELGIUM
3.500
3
UK-BRITAIN
36.200
4
HR-CROATIA
900
5
8.000
2011 est.
Average
annual
growth
7.200
36.600
36.500
From this table, one can estimate the number of POS/franchised enterprises to
be at least 500.000. The estimated total average annual growth rate of 7,8% is
high considering the figures span the 2008-2011 crisis years.
EFF • 57
Table 3: Franchise Employment + average annual growth 2007-2011
EMPLOYMENT (self and employees)
Country
2007
2008
2009
Average
annual
growth
2010
2011
61.000
61.000
-2,3%
80.000
25,0%
521.000
594.000
5,7%
16.500
16.000
0,0%
1
AT-AUSTRIA
2
BE-BELGIUM
40.000
3
UK-BRITAIN
480.000
4
HR-CROATIA
15.974
5
CZ-CZECH Rep.
30.000
30.000
6
DK-DENMARK
32.800
32.800
7
FI-FINLAND
35.700
43.000
45.000
46.000
46.000
6,8%
8
FR-France
315.715
330.991
327.773
330.991
1,9%
9
DE-GERMANY
441.000
450.000
459.000
463.000
496.000
7,5%
10
EL-GREECE
11
HU-HUNGARY
92.000
100.000
100.000
100.000
100.000
2,2%
12
IT-ITALY
182.908
182.215
180.525
186.408
188.222
0,8%
13 NL-NETHERLANDS
245.576
255.201
258.808
257.361
270.300
2,5%
14
PL-POLAND
157.000
187.500
212.000
259.000
301.000
4,5%
15
PT-Portugal
66.860
68.960
69.536
73.143
70.151
3,0%
16
RS-SERBIA
17
SI-SLOVENIA
18
ES-SPAIN
234.415
235.929
235.075
231.603
204.713
2,7%
19
SE-SWEDEN
67.000
75.000
102.000
102.000
110.000
14,0%
20
CH-SWITZ.
21
TR-TURKEY
2.374.148 2.459.796 2.454.717 2.379.815 2.931.177
5,3%
64.000
467.000
465.000
est. minimum 3.000.000
It is difficult to develop conclusions about the exact contribution of franchising to
employment from this table, other than to say that a minimum estimate, which
includes self employment + employees of franchised enterprise, is of the order of
at least 3 million in these 21 countries.
58 • EFF
Table 4: Turnover + average annual growth 2007-2011
TURNOVER of franchised POS
Country
2007
1
AT-AUSTRIA
2
BE-BELGIUM
8,0
3
UK-BRITAIN
12,4
4
HR-CROATIA
1,8
5
CZ-CZECH Rep.
6
DK-DENMARK
7
FI-FINLAND
8
2008
2009
2010
7,4
Average
annual
growth
2011
7,9
3,4%
15,3
22,8%
11,4
11,8
12,4
13,4
2,0%
43,0
50,0
50,0
51,0
54,5
6,3%
FR-France
42,0
45,0
47,7
47,9
49,2
5,2%
9
DE-GERMANY
41,0
47,0
44,0
55,0
64,4
0,1
10
EL-GREECE
11
HU-HUNGARY
12
IT-ITALY
18,2
21,4
21,8
22,2
22,3
9,7%
13 NL-NETHERLANDS
29,7
30,3
29,7
30,2
31,3
1,8%
14
PL-POLAND
18,2
20,4
22,7
24,5
25,7
9,1%
15
PT-Portugal
4,8
5,0
5,0
7,8
5,3
7,0%
16
RS-SERBIA
17
SI-SLOVENIA
18
ES-SPAIN
29,0
29,7
26,8
26,3
27,8
6,1%
19
SE-SWEDEN
10,0
13,0
15,0
19,0
21,0
20,7%
20
CH-SWITZ.
21
TR-TURKEY
Table 5: Proportion of domestic franchise brands, in %
FR
IT
NL DK ES TR DE SE UK
FI
PL EL HU PT BE CZ
SI
AT HR RS CH
85
85
85
74
74
48
46
82
81
81
80
80
80
70
70
62
60
55
30
-
-
Comment: high proportions of domestic brands are found in countries in which
franchising has been long-established as well as in countries whose economies
have rapidly modernized and grown in the last 25 years. In the Central & East
European countries, the ratio of domestic/foreign is constantly increasing. A
country like Austria, however, where franchising is long established, has by virtue
of geographic and cultural proximity to Germany, the particularity of having a
lesser % of national brands and a high % of German brands.
EFF • 59
TABLE 6: Economic sectors in which franchising exists in thase 21 countries, classified
according to EUROSTAT's NACE (Rev. 2) Economic Sector classification system
NACE REV.2 Codes
Section
Div.
Group
G
45
45.2
45.3
47
H
49
52
53
47.1-9
I
55
56
J
K
64
68
M
73
74
N
77
78
79
81
82
85
85.4-6
Q
86
87
88
R
90
93
S
94
95
96
X
60 • EFF
Sale of motor vehicle parts & accessories
RETAIL TRADE (except for motor vehicles & motorcycles)
Transportation and storage
Land transport & transport via pipelines (incl. Freight by road & removal serv.)
Warehousing & support activites for transportation
Postal & courrier activities (public & private activities)
Accomodation & Food Service Activities
Accomodation
FOOD & BEVERAGE SERVICE ACTIVITIES
Professional, scientific & technical activities
Legal & accounting (bookkeeping, auditing, tax consultancy)
Activities of head offices, management consultancy activities, public relations,
business manangement
Advertising & market research, public opinion polling
Other professional, scientific & technical activities
Administrative & support service activities
Rental & Leasing activities
Employpment activities
Travel agency, tour operator reservation service & related activities
Services to buildings & landscape activities
Office administrative, office support & other business support activities
69
70
P
Wholesale & retail Trade; repair of motor vehicles and motorcycles Divisions 45-47 - also referred to as "Distributive trades"
Maintenance & repair of motor vehicles
Information & Communication
Publishing activities
Information services activities (data processing, web portals, news agencies
Financial & Insurance activities
Financial service activities except insurance & pension funding
Real Estate activities
58
63
L
Details of the Group
94.1 & 94.9
Education
Human Health & Social Work activities
Human Health activities
Residential care activities
Social work activities without accomodation
Arts, entertainment & recreation
Creative, arts & entertainment activities
Sports activities, amusement & recreational activities
Other service activities
Activities of membership organisations
Repair of computers & personal & household goods
Other personal service activities
Anything that does not fit under the above categories
Note: f or a view of the full NACE (Rev. 2) Economic Sector classification system, go to
http://epp.eurostat.ec.europa.eu/portal/page/portal/nace_rev2/introduction
Comments related to Franchising
All retail in specialised or non-specialised stores, via
stalls, markets, mail order,internet
Note: The EFF considers the sales of motor vehicles in
Europe as coming under a concession contract and not
a franchise contract. Hence, they do not fall under the
statistics for franchising as, for example, in the US.
Countries where franchises are significant in this sector
France Greece Poland Spain
All 21 countries
Netherl. Spain Sweden
Netherl. Hungary
Netherl. Italy
Fast & slow food; mobile; catering; beverages; other
food service activites
Belgium Croatia France Germany Netherl. Poland Turkey
All 21 countries
Incl. book & software publishing
Netherlands
Netherlands Italy
Incl. credit granting
Incl. real estate agencies, RE management
Netherl. Italy
Belgium Czech R. Finland Greece Italy Netherl.
Portugal Spain Turkey
Greece Netherl.
Croatia Greece Netherl. Sweden Turkey
Incl. photography, design, translation/interpretation
Netherl. Turkey
Greece Netherl. Spain Turkey
Incl. motor vehicles, videos
Incl. placement ag., temporary employm. ag., HR,
Turkey
Nertherl.
Belgium Czech R. France Italy Slovenia Spain Turkey
All cleaning activities
Britain Denmark Finland Poland Sweden Turkey
Photocopying, organisation of conventions/trade shows, Austria Belium Britain Poland Turkey
other business support act.
Especially language, computing & educational support
Austria Croatia Denmark Greece Netherl. Spain Turkey
activities
Incl. medical, dental & other human health act?
Incl. nursing, special needs, elderly, disabled,etc.
Incl. elderly, disabled, child-care, etc.
Croatia Greece Hungary Netherl. Sweden Turkey
Netherl. Turkey
Finland
Incl. sports, fitness, amusement & recreation act.
Turkey
Denmark Finland Netherl. Slovenia Spain Turkey
Incl. Textiles/furs:washing & drycleaning, hairdressing,
beauty, funeral, physical well-being
Greece Italy Netherl. Turkey
France Netherl. Turkey
Britain Czeck R. Denmark France Germany Greece
Hungary Italy Netherl. Poland Slovenia Turkey
# of franchise brands in these sectors (est.)
# enterprises in these sectors (est.)
# employment in these sectors (est.)
12.600
500.500
3.300.000
EFF • 61
Tables 7-11 aim at showing the share of franchising in relation to statistics
provided by Eurostat.
source: http://epp.eurostat.ec.europa.eu /statistics_explained/
The objective is to show, in relation to the NACE (Rev. 2) Economic Sector
classification system:
Â
in which sectors franchised businesses are found
Â
the share of franchising in terms of number of enterprises
The results are partial due to the lack of statistics from the franchise sources, as
well as to the difficulties that lie in using some of the Eurostat data. For instance,
Eurostat regroups a portion of the NACE economic sectors into a subgroup
called "non financial business economy NFBE". This subgroup includes sectors
in which franchising exists (i.e. Distributive Trades, Admin. & Support services,
Transportation & storage, Accommodation & Food services, Real Estate), but
excludes others. At the same time, Franchising is also found in Education (i.e.
support activities), Human Health activities (i.e. non medical help for the elderly,
young, etc.), and many Services, sectors in which franchised concepts are
developing significantly.
Correlating the figures between franchise data and Eurostat data is not possible
in all instances.
However, this Report does set out to make comparisons where meaning can
be drawn.
Table 7: Three major NACE* economic sectors in which franchising
exists in all 21 countries
NACE REV.2 Codes
Sections
Division
G
47
Section/
Division/
Group
EU-27
#
enterprises
RETAIL
3,554,000
TRADE (except
%*
17.1%
employment
EFF
%*
EFF countries
in study
18,542,000 13.8% All 21 countries
motor veh.& ycles)
I
55/56
L
68
Accomod. & 1,753,000
Food/Bev.
Services
8,4%
9,949,000
7,4% All 21 countries
Real Estate
activities
5,3%
2,600,000
1,9%
1,097,700
* These 3 sectors fall into the "non-financial business economy".
62 • EFF
Table 8: RETAIL - % of franchised enterprises in Section G 47 / total #
of G 47 enterprises/ country
Section G 47 (Retail:"Distributive Trades")
Eurostat
Franchised
%
# enterprises
i
ES-Spain
FI-Finl.
NL-Neth.
PL-Pol.
SE-Swed.
UK
ii
498.000
22.800
77.900
319.000
58.500
187.900
ii/i
33.233
82
16.068
30.651
4.200
6.400
6,7%
0,4%
20,6%
9,6%
7,2%
3,4%
Comment Section G 47:
A high share of franchising is found in Retail & repair of motor vehicles/cycles. In
Retail, e-commerce is increasing & forcing a shift in developmental strategy. The
Distributive Trades are essentially local in nature with the consequence that in the
EU, this sector has the highest share of number of enterprises and related employment (in the "non-financial business economy", NFBE). For 2009, this share was
respectively 29,1% (number of enterprises) & 24,9% (employment).
Of this, 58,8% of the enterprises were in Retailing; 12,7% for the motor trades.
In Retail, there is a high incidence of part-time employment.
Table 9: ACCOMODATION & FOOD SERVICES - % of franchised enterprises
in Section I 55/56 / total # of I 55/56 enterprises / country
Section I 55/56 (Accomod. & Food services)
Eurostat
Franchised
%
# enterprises
i
ES-Spain
NL-Neth.
PL-Pol.
SE-Swed.
UK
283.900
38.500
57.700
27.500
129.100
ii
ii/i
10.590
2.160
1.699
4.200
8.100
3,7%
5,6%
2,9%
15,3%
6,3%
Comment Section I 55/56:
A significant share of this sector is developed as franchising in the world.
EFF • 63
Table 10: TRANSPORTS & STORAGE - % of franchised enterprises in
Section H 49, 52, 53 / total # of H 49, 52, 53 enterprises / country
Section H 49, 52, 53 (Transports & Storage)
Eurostat
Franchised
%
# enterprises
i
ES-Spain
NL-Neth.
SE-Swed.
ii
220.800
26.100
28.900
ii/i
2.481
971
1.250
1,1%
3,7%
4,3%
Table 11: REAL ESTATE - % of franchised enterprises in Section L 68 / total #
of L 68 enterprises / country
Section L 68 (Real Estate)
Eurostat
Franchised
%
# enterprises
i
FI-Finl.
EL-Greece
NL-Neth.
ii
17.000
na
19.700
ii/i
8
23
971
0,1%
4,9%
Comment L 68:
This Section does not include facilities management (see M). In 2009, in the EU-27's
non-financial business economy, around 1/20 enterprises operated in this section,
accounting for over 1 million enterprises. It is a capital-intensive sector with high
levels of tangible investment. The largest subsector in L is 68, renting & operating
of real estate, accounting for 60,1% of the total number of enterprises.
64 • EFF
The European Franchise Federation (EFF), founded in 1972, is a not-for-profit professional
organization that represents the franchise industry in Europe. It has its seat in Brussels. It currently has as members 20 franchise associations from 169 EU Member States and 410 non-EU
States. Its aims are to promote, protect and contribute to the development of franchising in
Europe and to speak with one voice for franchising to all levels of authority.
www.eff-franchise.com
Contact: Carol Chopra, Executive Director, [email protected]
List of EFF Members (update: October 2012)
Austria, Austrian Franchise Association (ÖFV)
[email protected]
www.franchise.at
[email protected]
Belgium, Belgian Franchise Federation (FBF/BFF)
www.fbf-bff.be
[email protected]
Britain, British Franchise Association (BFA)
www.thebfa.org
[email protected]
Croatia, Croatian Franchise Association (FIP)
www.fip.com.hr
[email protected]
Czech Republic, Czech Franchise Association (CAF)
www.czech-franchise.cz
[email protected]
Denmark, Danish Franchise Association (DFA)
www.danskekaeder.dk
[email protected]
Finland, Finnish Franchise Association (FFA)
www.franchising.fi
[email protected]
France, French Franchise Federation (FFF)
www.franchise-fff.com
[email protected]
Germany, German Franchise Association (DFV)
www.franchiseverband.com
[email protected]
Greece, Greek Franchise Association (GFA)
www.franchising.gr
[email protected]
Hungary, Hungarian Franchise Association (MFSZ)
www.franchise.hu
[email protected]
Italy, Italian Franchise Association (AIF)
www.assofranchising.it
Netherlands, Netherlands Franchise Association (NFV) [email protected]
www.nfv.nl
[email protected]
Poland, Polish Franchise Association (POF)
www.franchise.org.pl
[email protected]
Portugal, Portuguese Franchise Association (APF)
www.apfranchise.org
[email protected]
Serbia, Serbian Franchise Association (SURF)
www.sfa.rs / www.franchiseserbia.rs
[email protected]
Slovenia, Slovenian Franchise Association (SFA)
www.franchise-slovenia.net
[email protected]
Sweden, Swedish Franchise Association (SF)
www.franchiseforeningen.se
[email protected]
Switzerland, Swiss Franchise Association (SFV)
www.franchiseverband.ch
[email protected]
Turkey, Turkish Franchise Association (UFRAD)
www.ufrad.org.tr
9 Austria, Belgium, Czech Rep., Denmark, Finland, France, Germany, Greece, Hungary, Italy, Netherlands, Poland, Portugal,
Slovenia, Switzerland, UK
10 Croatia, Serbia, Switzerland, Turkey
Graphic Design: Cécile Daniel
EUROPEAN FRANCHISE FEDERATION
Av. Louise, 179/14 • B – 1050 Brussels • Belgium Tel. 32 (0) 2 520 16 07 • Fax 32 (0) 2 520 17 35
[email protected] • www.eff-franchise.com