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Franchising in Greece Dr. Aris Ikkos JBR Hellas Ltd. Business Consultants.

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Presentation on theme: "Franchising in Greece Dr. Aris Ikkos JBR Hellas Ltd. Business Consultants."— Presentation transcript:

1 Franchising in Greece Dr. Aris Ikkos JBR Hellas Ltd. Business Consultants

2 Franchising in Greece JBR Hellas Ltd.2 A Brief History 1st franchise: mid-70s mid-80s: no more than a dozen current situation –more than 200 franchises –more than franchisees –franchise sales: less than 5% of total

3 Franchising in Greece JBR Hellas Ltd.3 Why franchise in Greece? High percentage of self-employment Fast growing economy Competitive market Idle cash Maturing Franchise Market Franchise sales: less than 5% of total

4 Franchising in Greece JBR Hellas Ltd.4 Type of Franchises

5 Franchising in Greece JBR Hellas Ltd.5 Franchisees by Type

6 Franchising in Greece JBR Hellas Ltd.6 Reasons for Franchising

7 Franchising in Greece JBR Hellas Ltd.7 Pre-franchise Experience

8 Franchising in Greece JBR Hellas Ltd.8 Life Cycle of Franchisees

9 Franchising in Greece JBR Hellas Ltd.9 Non-Domestic Operations (26%)

10 Franchising in Greece JBR Hellas Ltd.10 Cost of Franchised Outlet (th. USD) Business Category RestaurantsRestaurants Food RetailFood Retail Clothing & FootwearClothing & Footwear Home ImprovementHome Improvement Non-food RetailNon-food Retail Health & Beauty CareHealth & Beauty Care Business Aids-ServicesBusiness Aids-Services EducationEducation Entry Fee 3,3 - 50,0 6,6 - 40,0 6,6 - 26,4 3,3 - 16,5 3,3 - 66,6 3,3 - 20,0 In. Investment 16, ,0 26, ,7 40, ,3 26,7 - 66,7 23, ,0 23, ,7 16, ,7 3,3 - 83,3

11 Franchising in Greece JBR Hellas Ltd.11 Franchisor Remuneration

12 Franchising in Greece JBR Hellas Ltd.12 Interest by Category

13 Franchising in Greece JBR Hellas Ltd.13 Top 10 (out of 35 subcategories)

14 Franchising in Greece JBR Hellas Ltd.14 Professional Status

15 Franchising in Greece JBR Hellas Ltd.15 Ability to Invest (‘000 USD)

16 Franchising in Greece Dr. Aris Ikkos JBR Hellas Ltd. Business Consultants

17 Franchising in Greece JBR Hellas Ltd.17 The Greek Franchise Market Type of Franchises Active Franchisees by Category Arrangements of Non-Domestic Operations Life-cycle of franchisees Length of franchise agreements Contract renewal - extension Reasons for franchising Establishing of Pilot outlet Entry fee and Initial investment Franchisor remuneration Source: ICAP - Arthur Andersen: Franchising in Greece

18 Franchising in Greece JBR Hellas Ltd.18 Franchise Agreements Duration

19 Franchising in Greece JBR Hellas Ltd.19 Contract Renewals

20 Franchising in Greece JBR Hellas Ltd.20 Pilot Operation

21 Franchising in Greece JBR Hellas Ltd.21 Profile of Potential Franchisees KEM 99 Franchise Exhibition Athens, Jan. 29th - Feb. 1st, Exhibitors –55 Greek –22 International (USA, Italy, France, Canada) 15,000 visitors 5,700 questionnaires

22 Franchising in Greece JBR Hellas Ltd.22 Findings Interest by Category Professional Status Age Origin Ability to Invest Ownership of Shop Premises Engagement with the Franchise Method

23 Franchising in Greece JBR Hellas Ltd.23 Age

24 Franchising in Greece JBR Hellas Ltd.24 Origin

25 Franchising in Greece JBR Hellas Ltd.25 Ownership of Shop Premises

26 Franchising in Greece JBR Hellas Ltd.26 Engagement with Franchising

27 Franchising in Greece JBR Hellas Ltd.27 Source of Visitors’ Profile Picture of Study 7 Categories 35 Subcategories Characteristics: –Professional Status –Age –Origin –Ability to Invest –Shop Ownership –Franchise Engagement


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