Unless you’ve been living under a rock for the last couple of weeks, you know that the men’s FIFA World Cup has been happening in Brazil.
This upcoming Sunday is the final match, which will feature Germany and Argentina. Obviously these two nations are solid when it comes to their futbol, but what about their franchising? Let’s take a look at how these two countries match up in a different way:
According to the latest numbers from Germany Trade & Invest, the economic development agency of Germany:
- The German franchising industry brings in about €61.2 billion annually
- Approximately 1,000 franchisors operate in Germany
- There are over 72,000 independent franchisees
- 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
- The German franchise market is estimated to reach €70 billion in turnover in 2015
Overall, the German franchise market is strong. There is also ample room for growth. In addition to the estimated projected growth, it’s still a relatively small franchise market. For example, the franchise market in France – which is widely considered the largest European franchise market – has 40% more franchisors than Germany.
- The current size of the Argentine franchise market is about $6.5 billion annually
- Franchising sales make up approximately 2% of the nation’s GDP
- About 90% of current operating franchises are of Argentine origin
- There are an estimated 400 franchise brands in Argentina
- The tourism and aesthetic (beauty) segments are two areas seeing marked growth recently
- Uruguay is the number one foreign destination for Argentina-based franchises
Obviously the Argentine franchise market is smaller than Germany’s, but it’s making great strides. The annual growth rate for the market is estimated at 10% annually. Something to note is that the laws governing franchising in Argentina are not as clearly defined as in some other countries. According to export.gov, franchise contracts in Argentina are generally protected under the Argentine Commercial Code and not governed by specific legislation. For this reason, it’s suggested that those franchising in Argentina take great care to clearly establish the obligations of the franchisor and franchisee in the contract.
Of course, if you’re interested in franchising in either of these countries, Franchise Direct has you covered.