Wright, Lori

English

University of New Hampshire

University of New Hampshire
University of New Hampshire Scholars' Repository
Media Relations Administrative Offices
3-7-2006
European Union Is Hot Spot For Expansion
Of Franchising, New Research From UNH’s
RosenbergCenter Indicates
Lori Wright
Follow this and additional works at: https://scholars.unh.edu/news
This News Article is brought to you for free and open access by the Administrative Offices at University of New Hampshire Scholars' Repository. It has
been accepted for inclusion in Media Relations by an authorized administrator of University of New Hampshire Scholars' Repository. For more
information, please contact nicole.hentz@unh.edu.
Recommended Citation
Wright, Lori, "European Union Is Hot Spot For Expansion Of Franchising, New Research From UNH’s RosenbergCenter Indicates"
(2006). UNH Today. 1013.
https://scholars.unh.edu/news/1013
9/21/2017 European Union Is Hot Spot For Expansion Of Franchising, New Research From UNH’s Rosenberg Center Indicates
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UNH Media Relations 
European Union Is Hot Spot For Expansion Of
Franchising, New Research From UNH’s Rosenberg
Center Indicates
UK Considered The Most Attractive European Country For Franchising
Contact:  Lori Wright 
603-862-0574
 UNH Media Relations
March 7, 2006
DURHAM, N.H. -- Stretching from the Artic to the Mediterranean, and the Atlantic to the
Aegean, the European Union represents a single market of more than 450 million consumers
in 25 nations. New research by the William Rosenberg International Center of Franchising at
the University of New Hampshire indicates franchisors worldwide, and particularly those in the
United States, are poised to take advantage of this dynamic market.
A new research report, “International Franchising: The European Union (EU),” was presented
recently at the International Franchise Association 46th Annual Convention by Udo
Schlentrich, professor of franchising hospitality management, and director of the Rosenberg
Center at UNH’s Whittemore School of Business and Economics.
“Although U.S.-based franchisors have been operating in EU countries for many years, entry
and expansion into the newly enlarged EU market does not come without risk. The experience
of U.S.-based franchise companies that have operated their system in the EU provides
valuable lessons for potential entrants and also for those companies interested in expanding
into the recently enlarged European franchising marketplace,” Schlentrich says.
According to the International Franchise Association, in 2001 franchised businesses accounted
for 56.3 percent of quick service restaurants, 18.2 percent of lodging establishments, 14.2
percent of retail food businesses, and 13.1 percent of table/full service restaurants. Franchises
employed almost 10 million people, with direct output close to $625 billion and a payroll of
$230 billion.
The UNH researchers surveyed 109 U.S.-based franchise companies, representing more than
115,000 units worldwide. Of those surveyed, the majority of companies’ franchise units were
located in the United States (69.8 percent), and four out of five franchise units in the United
States were franchisee-owned (80 percent). More than half of the U.S.-based franchise
companies (52 percent) surveyed operate units outside the United States, which represents
nearly a 20 percent increase in international expansion of U.S.-based franchise systems since
1996, and a 53 percent increase since 1989.
“The assessment of franchising in the EU is timely, particularly in light of the potential
opportunities presented by the enlargement of the EU with 10 new member countries. Two
additional countries, Romania and Bulgaria, are close to being given the right to join the EU,
while Turkey and the Ukraine are actively pursuing their application. The EU has an active
franchising record, with hundreds of franchisors and thousands of franchisees operating
throughout Europe, generating billions in annual sales,” according to the report.
Nearly one third (31.3 percent) of the franchisors surveyed felt that their future potential in
the EU was outstanding, almost half (48.4 percent) felt it was moderate, and 20.3 percent felt
it was limited.
9/21/2017 European Union Is Hot Spot For Expansion Of Franchising, New Research From UNH’s Rosenberg Center Indicates
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Those surveyed appear poised for expansion. Nearly four out of five franchise companies (79
percent) plan to open new units outside the United States in the next three years, which
represents about a 25 percent increase since 1996, and nearly a 70 percent increase since
1989. The most important countries/regions identified for franchise expansion during the next
three years were the United States (28 percent), followed closely by Canada (26 percent),
Europe (15 percent), the Pacific Rim (9 percent) and China (7 percent).
More than half of U.S.-based franchisors surveyed already operate in EU countries, and the
majority (51 percent) of those operating in Europe favor the UK, with the United Kingdom
where they have the most European units. Although less than half (45.1 percent) of the U.S.-
based franchisors surveyed do not currently operate units in EU countries, 66 percent plan to
enter the market.
That bodes well for the UK. More than half (60 percent) of the U.S.-based franchisors who do
not currently operate in the EU find the UK to be the most attractive EU country for entry.
However, 22 percent of the U.S.-based franchisors not operating in the EU said France was the
least attractive EU country for entry.
The UK also did well with U.S.-based franchisors already operating in the EU, with 48 percent
saying the UK is the most attractive EU country for expansion. Germany also was considered a
good place for franchise expansion, as was France. Those surveyed said Cyprus, Malta,
Estonia and Slovenia were the least attractive EU countries for expansion, all newcomers to
the EU and each representing a very small market.
EDITORS AND REPORTERS: Udo Schlentrich, director of the William Rosenberg
Center of International Franchising, can be reached at udo.schlentrich@unh.edu or
603-862-0137.
DOWNLOAD THE REPORT: http://www.unh.edu/news/docs/RCIF_EU2006.pdf.
 


European Union Is Hot Spot For Expansion OfFranchising, New Research From UNH’s RosenbergCenter Indicates

UNH Scholars' Repository

University of New HampshireUniversity of New Hampshire Scholars' RepositoryMedia Relations Administrative Offices3-7-2006European Union Is Hot Spot For ExpansionOf Franchising, New Research From UNH’sRosenbergCenter IndicatesLori WrightFollow this and additional works at: https://scholars.unh.edu/newsThis News Article is brought to you for free and open access by the Administrative Offices at University of New Hampshire Scholars' Repository. It hasbeen accepted for inclusion in Media Relations by an authorized administrator of University of New Hampshire Scholars' Repository. For moreinformation, please contact nicole.hentz@unh.edu.Recommended CitationWright, Lori, "European Union Is Hot Spot For Expansion Of Franchising, New Research From UNH’s RosenbergCenter Indicates"(2006). UNH Today. 1013.https://scholars.unh.edu/news/10139/21/2017 European Union Is Hot Spot For Expansion Of Franchising, New Research From UNH’s Rosenberg Center Indicateshttp://www.unh.edu/delete/news/news_releases/2006/march/lw_060307franchise.html 1/2UNH Media Relations European Union Is Hot Spot For Expansion OfFranchising, New Research From UNH’s RosenbergCenter IndicatesUK Considered The Most Attractive European Country For FranchisingContact:  Lori Wright 603-862-0574 UNH Media RelationsMarch 7, 2006DURHAM, N.H. -- Stretching from the Artic to the Mediterranean, and the Atlantic to theAegean, the European Union represents a single market of more than 450 million consumersin 25 nations. New research by the William Rosenberg International Center of Franchising atthe University of New Hampshire indicates franchisors worldwide, and particularly those in theUnited States, are poised to take advantage of this dynamic market.A new research report, “International Franchising: The European Union (EU),” was presentedrecently at the International Franchise Association 46th Annual Convention by UdoSchlentrich, professor of franchising hospitality management, and director of the RosenbergCenter at UNH’s Whittemore School of Business and Economics.“Although U.S.-based franchisors have been operating in EU countries for many years, entryand expansion into the newly enlarged EU market does not come without risk. The experienceof U.S.-based franchise companies that have operated their system in the EU providesvaluable lessons for potential entrants and also for those companies interested in expandinginto the recently enlarged European franchising marketplace,” Schlentrich says.According to the International Franchise Association, in 2001 franchised businesses accountedfor 56.3 percent of quick service restaurants, 18.2 percent of lodging establishments, 14.2percent of retail food businesses, and 13.1 percent of table/full service restaurants. Franchisesemployed almost 10 million people, with direct output close to $625 billion and a payroll of$230 billion.The UNH researchers surveyed 109 U.S.-based franchise companies, representing more than115,000 units worldwide. Of those surveyed, the majority of companies’ franchise units werelocated in the United States (69.8 percent), and four out of five franchise units in the UnitedStates were franchisee-owned (80 percent). More than half of the U.S.-based franchisecompanies (52 percent) surveyed operate units outside the United States, which representsnearly a 20 percent increase in international expansion of U.S.-based franchise systems since1996, and a 53 percent increase since 1989.“The assessment of franchising in the EU is timely, particularly in light of the potentialopportunities presented by the enlargement of the EU with 10 new member countries. Twoadditional countries, Romania and Bulgaria, are close to being given the right to join the EU,while Turkey and the Ukraine are actively pursuing their application. The EU has an activefranchising record, with hundreds of franchisors and thousands of franchisees operatingthroughout Europe, generating billions in annual sales,” according to the report.Nearly one third (31.3 percent) of the franchisors surveyed felt that their future potential inthe EU was outstanding, almost half (48.4 percent) felt it was moderate, and 20.3 percent feltit was limited.9/21/2017 European Union Is Hot Spot For Expansion Of Franchising, New Research From UNH’s Rosenberg Center Indicateshttp://www.unh.edu/delete/news/news_releases/2006/march/lw_060307franchise.html 2/2Those surveyed appear poised for expansion. Nearly four out of five franchise companies (79percent) plan to open new units outside the United States in the next three years, whichrepresents about a 25 percent increase since 1996, and nearly a 70 percent increase since1989. The most important countries/regions identified for franchise expansion during the nextthree years were the United States (28 percent), followed closely by Canada (26 percent),Europe (15 percent), the Pacific Rim (9 percent) and China (7 percent).More than half of U.S.-based franchisors surveyed already operate in EU countries, and themajority (51 percent) of those operating in Europe favor the UK, with the United Kingdomwhere they have the most European units. Although less than half (45.1 percent) of the U.S.-based franchisors surveyed do not currently operate units in EU countries, 66 percent plan toenter the market.That bodes well for the UK. More than half (60 percent) of the U.S.-based franchisors who donot currently operate in the EU find the UK to be the most attractive EU country for entry.However, 22 percent of the U.S.-based franchisors not operating in the EU said France was theleast attractive EU country for entry.The UK also did well with U.S.-based franchisors already operating in the EU, with 48 percentsaying the UK is the most attractive EU country for expansion. Germany also was considered agood place for franchise expansion, as was France. Those surveyed said Cyprus, Malta,Estonia and Slovenia were the least attractive EU countries for expansion, all newcomers tothe EU and each representing a very small market.EDITORS AND REPORTERS: Udo Schlentrich, director of the William RosenbergCenter of International Franchising, can be reached at udo.schlentrich@unh.edu or603-862-0137.DOWNLOAD THE REPORT: http://www.unh.edu/news/docs/RCIF_EU2006.pdf. 

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European Union Is Hot Spot For Expansion OfFranchising, New Research From UNH’s RosenbergCenter Indicates

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