In an increasingly unstable economic environment, marked by sustained inflation, persistent geopolitical tensions and the reintroduction of trade barriers such as the recent increase in customs duties on certain imports, many entrepreneurs are looking for a model that will hold up.
In this context, franchising is more than ever a robust model, capable of absorbing shocks and offering a structuring framework, where pooling resources and support go hand in hand with resilience.
The 20th annual Franchise Survey, conducted in 2023 – against a backdrop of particularly exacerbated inflation – by Banque Populaire, in partnership with the Fédération Française de la Franchise and Kantar, sheds valuable light on the model’s performance. And despite the already tense context at the time of the study, its findings remain fully relevant today.
Among the most revealing figures, 78% of franchisees claim to be more resilient to economic crises than independent retailers. This additional protection is attributed by 82% to being part of a network. Faced with rising costs, franchisees have been able to adapt: 80% have reduced their costs, 54% have increased their prices, and almost one in two has strengthened their commercial offerings or reduced their margins.
Franchisors have not been left behind. 89% of them say they have adopted a pro-active approach to limit the impact of inflation on sales prices. This involves renegotiating with suppliers (69%), introducing promotional offers (45%) or partially absorbing price increases (24%). Despite the uncertainties, 84% remained confident in their network’s prospects.
Another strength of the model is the quality of the human link. 76% have taken part in collaborative working groups, and 86% of network heads claim to have strengthened their internal leadership.
Lastly, franchisees have been with their network for an average of 13 years. And 81% of them say they want to stay, 58% of them definitely.
In an economy where agility is no longer enough, franchising is more than ever a strategic choice.
Find out more about the 20th Annual Franchise Survey here:
👉 https://www.img.banquepopulaire.fr/app/uploads/sites/5/2024/09/13155641/pro-enquete-franchise-20e-edition-2024.pdf