Assessing franchising in the EU

Europe is taking centre stage in the growth strategies of many international franchisors. European Franchising magazine's editor Stuart Anderson reflects on a recent survey which reveals the growing interest this region is generating Europe has long been a first port of call in the international expansion plans of most US franchisors seeking to enter new markets. Its collection of developed consumer and business-to-business markets, linked together by a free market system, and a usually favourable reponse to American goods, services and brands combines with a growing recognition of the value of a fully developed and supported Master Franchise package to make the region an exciting proposition for global growth. At the International Franchise Association's annual convention in February, a new research report titled International Franchising: The European Union (EU) presented by the William Rosenberg International Center of Franchising at the University of New Hampshire found that 31.3 per cent of 109 US-based franchise companies surveyed felt that their future potential in the EU was "outstanding", while 48.4 per cent felt it was "moderate". "The assessment of franchising in the EU is timely, particularly in light of the potential opportunities presented by the enlargement of the EU with 10 new member countries," says the report. "Two additional countries, Romania and Bulgaria, are close to being given the right to join the EU, while Turkey and the Ukraine are actively pursuing their application. The EU has an active franchising record, with hundreds of franchisors and thousands of franchisees operating throughout Europe, generating billions in annual sales." Perhaps the most exciting opportunities in Europe are in those former Eastern Bloc markets which are embracing free market capitalism and generating strong economic growth. For profiles of the Central and Eastern European regions and their prospects for franchising, see the printed version of European Franchising. With the Services sector set for strong growth as these markets mature, we feature our Services Select 50 highlighting brands with serious international expansion ambitions (see printed version of European Franchising). With increasing international franchising activity, we have re-vamped our news sections to provide more focused news coverage (visit www.europeanfranchising.net or www.franchise-international.net for frequent updates).