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Franchising - Global Outlook

  • ID: 661693
  • January 2012
  • Region: Global
  • 189 Pages
  • Global Industry Analysts, Inc

The global outlook series on Franchising provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers an aerial view of the global franchising industry, identifies major short to medium term market challenges, and growth drivers. The report provides a rudimentary prelude to the worldwide Franchising industry. The discussion summarizes, in addition to other market variables, the advantages of franchising, and the impact of internet – the opportunities and challenges boded and the change in business models elicited.

The report offers a compilation of recent mergers, acquisitions, and strategic corporate developments. Market discussions in the report are punctuated with fact-rich market data tables. Regional markets briefly abstracted and covered include United States, Canada, Europe, France, Germany, Russia, UK, Asia, Australia, New Zealand, China, Hong Kong, India, Malaysia, South Korea, Taiwan, Middle East, Mexico, and Africa. The report also includes an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 878 companies worldwide.

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Advantages of Franchising 2
Small and Medium Sized Enterprises 2
Small Businesses to Witness Recovery Post Recession 3
Factors Driving Franchising Business 3
Globalization Charges Up the Franchising Sector 3
Aging World Population Drives Up New Franchising Businesses 3
Franchising Booming Due to Baby Boomers 3
Franchising Sector Capitalizes on Online Learning Programs
for Kids 4
Online Facilities Facilitate Franchising Business 4
Involvement of Banks to Encourage Potential Franchisers 4
The Secret of Success 4
Population and Market Size 5
Urbanization 5
Literacy 5
Corruption 5
Proximity to Larger Nations 5
An Overview of the Personal Services Sector 5
Table 1: Global Chain Franchise Market (2009): Breakdown of
Revenues in US$ Million for McDonalds, 7-Eleven, KFC,
Subway, Burger King, Ace Hardware, Pizza Hut, Circle K
Stores, Wendys, Marriott Hotel, Resorts and Suites, Hilton
and Re/Max International Inc. 6

Franchising Sector to Witness Strong Growth 7
Commercial Franchising Sector Growing Fast 7
Drug Testing Franchises to Witness Growth 8
Asia and Africa Emerge as Promising Regions 8
Technology and the Internet 8
Websites are Vital 8
Business-to-Customer E-Commerce (B2C) 8
New Disputes 9
New Laws to Shape Up the Franchising Sector 9
New Businesses 9
New Franchising Concepts Catching Up 10
Brewing Special Coffee 10
Staffing and Business Services 10
Niche Gyms 10
Non-Medical Healthcare 10
Education and Tutoring 10
Mergers, Acquisitions, and Alliances 11
Latest Trends 11
Franchising Concept Spreads Across the Food and Business
Consulting Sectors 11
A New Beginning for Distressed Industries 12
Become a “Semi-Absentee” Owner 12
Women Business Owners Prefer to Franchise 12
Franchising Enables Home-Based Work 12
Human Resources 12
Retailing 13
Franchisee Outlets 13
Challenges to be Tackled 13
The Future Franchising Scenario 14
Table 2: Global Franchising Market (2011): Percenatge
Breakdown of GDP in Franchises by Business Format 14
Global Hotel Franchise Market (2011): Top 5 Hotel Chains
Ranked By Number of Hotels 14
Table 3: Global Franchise Market (2011): Percentage Breakdown
by Number of Establishments Per Sector 15
Market Analytics 16
Table 4: World Recent Past, Current, and Future Analysis for
Franchising by Geographic Region - US, Europe, Asia-Pacific
(including Japan), and Rest of World Markets Independently
Analyzed with Annual Revenue Figures in US$ Billion for Years
2010 through 2015 16

Table 5: World 5-Year Perspective for Franchising by
Geographic Region - Percentage Breakdown of Dollar Revenues
for US, Europe, Asia Pacific (including Japan) and Rest of
World Markets for Years 2011 & 2015 17





Preview of the US Franchise Industry 35
Market Trends 35
Trade in the Franchise Market 36
Franchising Growth at Pinnacle 37
Franchising - The Concept of the Future 38
Franchising - Means of International Expansion 38
Costs and Benefits of International Expansion 39
Good as Gold: Hottest Franchising Trends 40
Senior Care 40
Kids 40
‘Invincible’ Franchises Face Tough Challenges 41
Minorities in the Future Franchises 42
Interests in Targeting the Latino Market 42
New Arenas 42
Restaurants 43
Table 6: Franchising Market in the US (2011): Percentage
Breakdown of Market Share by Franchising Type 43

Table 7: Select Leading Franchisees in the US Franchising
Market (2011): Sales in US$ Billion 43

Table 8: Franchising Market in the US (2011): Leading
Convenience Stores by Number of Franchisees - 7-Eleven,
Shell Oil Products US, BP North America, ChevronTexaco Corp
and Exxon Mobil Corp. 44
Sporting Franchise 44
Key Trends 44
Financing Segment 44
Commercial Real Estate Segment 45
Franchise Operations 45
Outlook 45

1b. CANADA 46
Top 5 Franchising Sectors in Canada (2011): Ranked on the
Basis of Highest Number of Concepts 47

2. EUROPE 48
Overview 48
Key Market Statistics 48
Top 10 Franchises in Europe (2010): Ranked on the Basis of
Highest Number of Franchise Units 48
Table 9: Europe Franchise Market (2010): Number of Franchise
Brands by Country 49
Market Analytics 50
Table 10: European Recent Past, Current, and Future Analysis
for Franchising by Geographic Region -France, Germany, Italy,
UK, Spain and Rest of Europe Markets Independently Analyzed
with Annual Revenue Figures in US$ Billion for the Years 2010
through 2015 50

Table 11: European 5-Year Perspective for Franchising by
Geographic Region - Percentage Breakdown of Dollar Revenues
for France, Germany, Italy, UK, Spain and Rest of Europe
Markets for Years 2011 and 2015 51

2a. FRANCE 51

2b. GERMANY 52
Franchising Benefits 52
Challenges 52
Table 12: German Franchise Market (2011): Number of Outlets
for Select Leading Franchisers 52

Table 13: Franchising Market in Germany (2011): Percentage
Breakdown of Market Share by Sectors 53

2c. RUSSIA 54
Market Overview 54
Potential Sectors 55
Apparel 55
Cosmetics and Body Care 56
US Franchisers Discover Potential of Russian Market 56
Franchising Perfect for Small and Medium Size Businesses 57
Market Competency 57
Local Franchisers 58
US Holds Competitive Advantage 58
Favorable Economic Conditions 58
Market Setbacks 59

Business Mechanics 60
Business Stance in Europe 60
Future Prospects 61
Some Significant Market Share Tables 61
Leading Hotel Groups in UK (2009): Ranked on the Basis of
Number of Rooms-1 for Highest Number of Rooms 61
Table 14: UK Catering Franchisors Market (2009): Number of
Franchised Outlets for BurgerKing Ltd, Dominos Pizza Group
Ltd, Fast Food Systems Ltd, Kentucky Fried Chicken (Great
Britan) Ltd, McDonalds Restaurants Ltd and Wimpy GB Ltd 61

Bulgaria 62
Market Overview 62
New Concepts 62
Table 15: Number of Franchise Units in Bulgaria from 2007
through 2010 63
Belgium 63
Fast Food Franchising 63
Entry Barriers 64
Portugal 65
Table 16: Franchise Market in Portugal (2011): Percentage
Breakdown of Franchising Brands By Sector 65

Opportunities and Threats 66
Market Analytics 67
Table 17: Asia-Pacific Recent Past, Current, and Future
Analysis for Franchising by Geographic Region - Japan,
Australia, China, India, South Korea and Rest of Asia-Pacific
Markets Independently Analyzed with Annual Revenue Figures in
US$ Billion for the Years 2010 through 2015 67

Table 18: Asia-Pacific 5-Year Perspective for Franchising by
Geographic Region - Percentage Breakdown of Dollar Revenues
for Japan, Australia, China, India, South Korea and Rest of
Asia-Pacific Markets for Years 2011 and 2015 68


3b. CHINA 70
Table 19: Chinese Franchising Market (2010 & 2011): Number of
Franchise Systems 71

Table 20: Franchising Market in China (2011): Percentage
Breakdown of Market Share by Primary Function Areas 71

Table 21: Leading Economy Hotel Chains in China (2010):
Percentage Breakdown of Market Share Based on Number of Hotels
for Han Ting, 7 Days, Motel 168, Green Tea Inn, Super 8 and
Others 71
Outlook 72

3c. HONG KONG 74

3d. INDIA 75
Market Review 75
Franchising Market Scope 75
Advantages 75
Health Franchising Upsurges in India 75
Retail Franchising Scenario 76
Non-Retail Franchising Scenario 76
Challenges 76
Market Potential 76
Table 22: Franchising Market in India (2011): Percentage
Breakdown of Franchisees by Sector - IT Education, IT enabled
Services, Professional Services, Education - Preparatory and
Fashion, Retailing, and Others 77
A Review of the Indian Franchising Market 77
Stages of Growth 77
Initial Phase 77
Growth Phase 77
International Franchising 78
Franchisee Development in India 78
Multi-Unit Franchise 78
Single Unit Franchise 78
Master Franchise 79
Area Developer 79
Growth of Indian Franchising Sector in Different Periods 79
Geographical Distribution in the Country 79
Participation from Established Players 79
Adequate Infrastructure Growth 80
Increased Demand 80
Decline in Company-Owned Units 80
Significant Number of Franchisees 80
Contribution in Revenue 80
Enhanced Export Revenue 81
Contract Period 81
Trends 81
Sectors Attracting Franchisees in Indian Market 81
Role of Human Resource Management and Development in Indian
Franchising Industry 82
Impacts of Recession on Indian Franchising Segment 82
Indian Franchises Less Competitive Compared to Global Franchises 82

Government Initiatives to Promote Franchising 83
Franchise Segment Resilient to Recession 85
Table 23: Malaysian Franchise Market (2011): Percentage
Breakdown of Market Share by Sector 85

Success Breeds Success 86

Franchising Segment to Witness Growth in 2012 88
Table 24: Philippines Franchising Market (2011): Percentage
Breakdown of Number of Franchises by Category 88

Emerging Market Opportunities 89
Sandwich Franchising Market 89
Opportunities 90
Table 25: Franchise Market in Korea (2011): Percentage
Breakdown of Volume Sales by Sector 90

3i. TAIWAN 91


Saudi Arabian Franchising Market to Witness Significant Growth 92


5a. MEXICO 93
Market Insight 93
Openings 93
Domestic Franchises 94
Table 26: Leading Countries of Origin for Franchise Companies
(2011): Percentage Breakdown for Mexico, the US, Spain and
Others 94

Table 27: Franchise Market in Mexico (2011): Percentage
breakdown of Market Share by Leading Sectors 95

6. AFRICA 96
Loopholes in African Franchising 96
Lack of Familiarity 96
Lack of Financing Available to Franchisees and Franchisers as
Growth Capital 96
Lack of Franchise Regulation 97
Restricted Information Available on Market Opportunities 97
Expansion of Franchising Operations to Rural Areas 97
Suitable Political Environment 97
Franchise Development Programs Undertaken by AfDB 98
Development of Informative Tools 98
Development of Franchising Network 98
Streamlining the Regulatory Environment 98
Providing Financial Aid 98
Franchising to Support Small and Medium Enterprises (SMEs)
Development 98


Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown


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Burger King Corporation Hertz Corporation Carrefour S.A. Europcar Ltd. Snap-on Incorporated Domino's Pizza Limited Avis Budget Group, Inc.