Franchising in France is alive and well, with further good growth prospects to look forward to. This is the verdict of the 2006 review of franchisors and franchisees conducted by the French Federation of Franchising/Banque Populaire. The review is based on interviews with 562 franchisors and franchisees at the end of last year, including in-depth analysis of their daily workings, financing and overall success rates.

Certain key trends are worth highlighting:

• The number of women operating franchises continues to increase: 33 per cent of franchises were run by women in 2004 but by 2006 women made up 43 per cent.
• 77 per cent of franchisees previously worked directly for the franchise. This dominance reaches 91 per cent in the case of franchisees under the age of 40.
• French franchises are open to internationalization as some 30 per cent derive a significant percentage of sales from outside France. International business is concentrated in Europe: 13 per cent of French franchises have a presence in Spain, 12 per cent in Belgium, seven per cent in Portugal. But the fastest growing region, without doubt, is North Africa, notably Morocco and Tunisia.
• Six out of 10 franchisees finance their ambitions with a bank loan.
• French franchising is beginning to come of age as the average age for a franchise network is now 11 years. Typically, an entrepreneur established his brand through organic growth for nine years before turning to franchising to accelerate the brand's development, aiming for national coverage and export markets.

France is already one of the largest and most dynamic markets for franchising in Europe, boasting over 830 franchise networks. Growth remains solid, running at more than double the national GDP growth rate. Almost all of that growth comes from home-grown entrepreneurs, proof that franchising is one of the best ways to start and develop a business in France.

The big surprise remains the lack of non-French franchisors as international brands account for a tiny 10 per cent of the sector's activity. Yet French consumers have proved again and again that they are receptive to new ideas and concepts - but the problem for a French entrepreneur is finding the novelty! This anomaly can't last as entrepreneurs looking for new ideas begin to search the international horizons. So if your business has a successful concept, look to France for your next market development.

Know your client: profile of a french consumer

Even if your top priority is seeking out the best Master Franchisee candidate to develop your business in France, it is worth having a look at your end-client. FDS-France and IBT Partners help franchise networks identify Master Franchisees but we also assist the franchise network once it is up and running to develop its business. Knowing your client is the key to that success.

Frequently, the end-client is the French consumer. While it is notoriously difficult to define a typical consumer, it is still essential to identify some of the main criteria and characteristics. Your typical French consumer is:

• Getting older: France is currently enjoying a mini-baby-boom, but the trend for the general population is aging. This is helped by the fact that France boasts one of the highest life expectancies in the world (83 years for French women).
• Urbanite: Net average annual earnings in France is just over Euros21,000. While the service sector now represents over 70 per cent of GDP, manual workers still make up a quarter of the workforce. Farmers and farm workers, who now represent just 2.5 per cent of the workforce, still allow France to be the EU's largest agricultural provider, accounting for 15 per cent of total EU produce.
• Less traditional: Like elsewhere in Europe, the number of married couples has fallen since the start of the 1990s. Non-married couples now account for one couple in six.
• Served by fewer retailers: The French retail sector has undergone radical restructuring and consolidation over the last 20 years. Hypermarkets now claim 60 per cent of food and household items while large specialist stores, like sports or DIY specialists, capture 40 per cent of their markets.