This week four countries, England, Germany, Japan and the United States, will participate in the 2015 Women’s World Cup semi-finals, with the winners moving onto the final to be held Sunday, July 7. These nations, along with host country Canada, obviously have solid and stable foundations when it comes to the world’s most popular sport, but did you know that each of their franchising markets are strong as well?
Have a look at how these countries excel away from the pitch as well:
Host Country: Canada
Franchise Association: Canadian Franchise Association, established 1967
Quick Facts on the Canadian Franchise Industry:
- The industry generates approximately $68 billion every year.
- Approximately 1 of every 14 Canadians is employed by the franchise industry, directly or indirectly.
- There are an estimated 1,300 franchise brands operating in Canada.
- 60% of franchises are in non-food sectors and industries.
- Hospitality is the largest Canadian franchise sector.
Franchise owners, like other business owners, must deal with the constant need for workers. In Canada, legislation passed in 2011 limiting work permits of temporary foreign workers to a maximum of four years. The hope is that this regulation will put locals into a better position to acquire paying work and thus minimize unemployment across the country. Yet, as a (possible?) unintended consequence, franchises employing temporary foreign workers now have a new wrinkle in their workforce management.
Franchise Association: British Franchise Association, established 1977
Quick Facts on the British Franchise Industry:
- The industry generates £13.7 billion in annual revenue.
- There are approximately 930 franchise brands operating in the United Kingdom.
- There is over 560,000 people employed by the British franchise industry.
- Just under half of those employed by British franchises are full-time.
- 1 in 4 British franchisees own multiple units.
Similar to Canada, finding qualified talent is at the top of franchisors’ list of concerns. According to the most recent NatWest bfa Franchise Survey, it takes 250 leads and 25 interviews, on average, to find one new franchisee. However, the strict filtering process has been successful for the British franchise industry as a whole. Over 90% of franchisees, including new franchisees, report being at least “marginally profitable” (49% report being “quite profitable” or “very profitable”).
Franchise Association: Deutscher Franchise-Verband, established 1978
Quick Facts on the German Franchise Industry:
- The German franchise market is estimated to reach €70 billion in turnover in 2015.
- Approximately 1,000 franchisors operate in Germany.
- German franchises employ nearly 546,000 people.
- Nearly half (48%) of German franchise businesses are in the service sector.
- About 20% of new franchise systems in Germany come from overseas.
It’s no surprise that many of the successful dining franchise options in Germany hail from the United States. However, some emerging German food franchises are spreading Bavarian specialties around the globe. For example, the beer bar and restaurant franchise Brotzeit, which has a stated goal of introducing “authentic German cuisine accompanied by world famous quality German beer.” Started in 2006, the concept has already found a significant following in Asia with locations in China, Singapore, Hong Kong, Malaysia, Vietnam and the Philippines. The franchise also operates in Australia.
Franchise Association: Japan Franchise Association, established 1972
Quick Facts on the Japanese Franchise Industry:
- There are approximately 1,300 franchise chains operating.
- The industry generates an estimated 21.616 billion Yen annually.
- Retail is largest Japanese franchise sector, followed by convenience stores, restaurants and service.
- Convenience store franchises account for approximately 40% of total franchise revenue.
- The first franchise in Japan was a quick-service restaurant in Kyoto.
Many foreign investors think principally of Tokyo when exploring the Japanese market, however, that is undercutting both the Japanese marketplace and the foreign investor’s chances for success. Incoming franchise concepts must take special care to match their product/service offerings to the tastes of the tastes, culture and thinking of the Japanese locale it is opening in. It is suggested that franchisors use pop-up stores or an experiential campaign to introduce their wares to the market to gain valuable feedback and make necessary adjustments, if needed, before launching full-scale.
Semi-Finalist: United States
Franchise Association: International Franchise Association (IFA), established 1960
Quick Facts on the United States Franchise Industry:
- There are approximately 780,000 franchise establishments in the United States.
- Nearly nine million Americans are directly employed by the franchising industry.
- Quick-service restaurants make up about 38% of franchise employment.
- The industry brings in an estimated $889 billion annually.
- There are over 300 franchise categories operating within the United States.
Along with the joint-employer debate, the fight for $15 is currently the biggest story in U.S. franchising right now. IFA leadership is on the record as being opposed to the push for change in both areas for various reasons, but cities such as Seattle and L.A. are already on board with the wage increase. (For the record, the push for a higher minimum wage isn’t exclusive the U.S., Canadian provinces are also adopting higher minimum wages.)
With the exception of Japan, Franchise Direct has you covered if you’re interested in franchising in these countries. Use the following links to visit the website for each of the featured countries: