Enhance Reputation & Credibility In Domestic Market
Become a Multicultural Organization
Contribute to Economic Development in Foreign Countries
Market Size 728m Consumers!
Growing Demand for High Quality Products and Services
Mix of Mature & Developing Markets
Demographics & Diversity of Cultures
Development of Retail Infrastructure
Availability of Local Finance
European Franchising Marketplace
7,000 Franchise Systems
With 250,643 Units
85% of Franchise Concepts are Indigenous
Growth - 33% over last 10 years.
Source: European Franchise Federation Survey 2004
Americas Top Franchises In Europe Source:
www.franchisedirect.com ERA Real Estate 41 Subway 38 UPS Store/Mail
Boxes Etc. 37 KFC 35 Century 21 31 ChemDry 27 Pizza Hut 25 Sylvan
18 Novus 16 Remax Intl Inc 8 Burger King 3 McDonalds 1 Company
D evelopment of Franchising By Country Source: U.S. Commercial
Franchising Across Europe Source: EEF - 2004
Germany and UK lead on number of Domestic Systems followed by
France, Italy and the Netherlands
Lead Exporters of Indigenous Brands France, Germany, UK
Lead Importers of Foreign Brands Denmark, Belgium, Austria
Highest Growth Markets include Sweden, Hungary, Spain,
Netherlands and Ireland.
Greatest turnover recorded by Germany and the UK
Impact of American Franchises in Europe Source: U.S. Commercial
Service - 2007
Legal Aspects of Franchising Country Specific Laws
France Statutory Disclosure Requirement
Italy Franchise Law 2004
Lithuania Statutory Franchise Regulation 2000
Romania Law regarding the legal status of a Franchise
Spain Specific Disclosure and Registration Legislation
Legal Aspects of Franchising Other Important Considerations
Check out Country-specific Laws by Industry Sector
Germany High Degree of Protection
Poland Polish Civil Code
Greece Lack of clarity (use of land & buildings)
Belgium New Franchise Law under consideration
Disclosure & Relationship Laws Albania, Georgia, Moldova
Relationship Law Belarus, Russia and Ukraine
Take a Strategic Approach Where to Go?
Establish Market Demand
Development of Franchising & supply of Franchise
Economic, Political & Commercial Assessment GlobalVue
Degree of Cultural Diversity & Language Differences
Ease of Travel
Banking System Availability of local Finance
Communications & Technology
Competition Where are your competitors going?
How to entry Europe?
Market Entry Strategy
Master License, Area Developer or Regional Developer,
Geography, market, product/service and resource issues
Nuances of Individual Countries
Seek Advice local Franchise Associations
Pilot Units a Recipe for Success
Adapt to Local Market
Invest in Market Research
Test Transferability & Receptivity
Invest in Pilot Project
Refine Candidate Profile
Formulate Realistic Fees
Encourage Prospects to talk to Franchisees
Conduct Due Diligence on Prospects
Devise Realistic Development Schedule
TOP CONSIDERATIONS: Cultural & Business Differences
Introduction to signing.
Dont frighten prospects away.
Time for a sandwich?
Dont rush things.
Their email must be down!
THE CHALLENGES Barriers to Franchise Entry in Europe Source:
EAST VERSUS WEST: Challenges in the EAST
Relatively smaller markets
Royalties higher than competitors
Actual and psychological distance
Availability of real estate
Lack of brand awareness
EAST VERSUS WEST: Challenges in the WEST
Difficult to obtain operating licenses
High cost of real estate
Local regulations can be strict
Finding the right partner!
LEVEL OF OPPORTUNITY Source: U.S. Commercial Service 2007
Austria, Belgium, France, Germany, Slovakia, Spain, Sweden,
Switzerland, United Kingdom.
Greece, Portugal, Romania, Serbia.
Finland, Ireland, Turkey
BEST PROSPECTS Source: U.S. Commercial Service 2007 1
Entertainment 2 Interior Design, Laundry/Dry Cleaning,
Recruitment,Security & Environment 3 Training Services, Express
Delivery 4 Automotive, Hotel, Travel & Car Rental 5
Apparel/Fashion 6 Health & Fitness, Cleaning, Maintenance 7
Real Estate, Senior Home Care, Children/Education 8 Beauty &
Personal Care 10 Business Services 12 Food/Restaurant No. of
Our Customized Services
Expert counseling for new to mature franchisors
QuickTake for Europe!
Franchising Gold Key
Single Company Promotions
Business Facilitation Services
USA Pavilions at International Shows
Counseling & Matchmaking at Domestic Shows
Introductions to Local Franchise Associations
Webinars on International Market Opportunities
Regional Education & Development Conferences
EXPORT SUCCESS STORY PORTUGAL
In 2005, awarded a Master Franchise for Portugal
Initially planned to open 30 units in Portugal by the end of
2004 and 20 more in subsequent years.
As of April 2007, 54 units already opened.
3% share of GDP
1.2 % of total national employment
63,000 jobs generated
4,100 new jobs in 2006
900 new units
10,700 total units
2006 IIF Franchising by Country
EXPORT SUCCESS STORY IRELAND
Franchising Shows & Trade Missions
September 2007 Russia
October 2007 - Italy, Ireland, & United Kingdom
November 2007 Ireland
March 2008 France, Greece & India
May 2008 Australia
October 2008 Asia
Franchising E-Market Express
European Franchising Federation
International Franchise Association
European Franchising Network (legal support)
Contacts Finola Cunningham Team Leader, Global Franchising Team
U.S. Commercial Service, Dublin, Ireland Tel: +353-1-667-4753
Email: [email protected]