The German Franchising: Realities And Perspectives

Franchise Key:

The deutsche Franchise Verband (the equivalent of the FFF) has today 250 members and has existed for 30 years.

Franchising market in Germany has 910 networks, 55,700 franchisees that have made a turnover of 41 billion of Euros in 2007.

This positive situation could give to French franchisors the wish to develop their franchises across the Rhine.

Moreover some French brands moved there a long time ago like Yves Rocher, Kookaî, Promod, Pimkie and developed a good reputation.

Sectors of franchising activity in Germany are split as forward:
49% for services, 28% for business, 15% for catering and hotel business, 9% for the craft industry. More often, it’s about little companies (1.9 employees per site, less than in France).

Germany also knows the crisis since the hard and costly reunification but Germany is the 3rd most powerful country, its growth came up to 2.5% in 2007 and it has an extra export trade.

Besides with 82 million inhabitants, Germany represents an important potential of development even if households’ consumption dropped down for the same reasons than other European countries The explosion of prices linked to the growth of the barrel price, staples price, plus a setting up of a VAT at 3% in January 2007 by the German government. Read more.

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