FRANCE Trends and Developments Contributed by: François-Xavier Awatar and Lina Lahlou, Osborne Clarke
France stands as one of the most dynamic franchise markets in Europe. A striking illustration of this is that the French market constitutes the second-largest market worldwide, after the United States. The French Market: A Network-Driven Landscape Franchising has been an integral part of the French commercial landscape since its emergence in the 1970s. In 2025, France had 2,035 franchise networks and 93,395 franchised outlets, generating EUR93.7 bil - lion in turnover. The sector has continued to grow despite the economic and geopolitical crises affect - ing France and the world at large. Indeed, there was a 2.9% increase in the number of outlets and a 4.9% increase in turnover compared to 2024. The French Senate reported that, in 2025, franchise networks recorded turnover growth approximately twice that of the French economy as a whole. France is therefore a market in which franchising occu - pies a prominent position. Landlords, banks, suppli - ers, consulting firms and prospective franchisees are all well acquainted with the franchise model. Nevertheless, these factors present a significant chal - lenge for franchisors, who must establish themselves in an already highly competitive market. They must also demonstrate the viability and profitability of their concept in order to attract candidates, without pro - viding unrealistic financial projections that could ulti - mately be used against them. New networks entering the French market must differentiate themselves from well-established brands. A Country of Diverse Territories and Mid-Sized Cities One of France’s distinctive features lies in the diversity of its local markets. Beyond Paris, which serves as an important showcase for franchise networks, other major regional cities – such as Lyon, Marseille, Tou - louse, Bordeaux, Lille and Strasbourg – concentrate a significant active population and substantial tourist flows. Franchising is also expanding into mid-sized cities and rural commercial areas. The franchise model thus ena -
bles the deployment of a brand through local entre - preneurs who understand the local customer base. An international franchise therefore has every interest in expanding into France – for example, by initially establishing a presence in a high-visibility metropoli - tan area, then rolling out across several regional cit - ies and subsequently extending its territorial coverage into mid-sized towns. This is, for instance, the strategy pursued by fast-food chains such as Burger King and McDonald’s, which first developed in the Paris region, then expanded into other metropolitan areas and ulti - mately into rural zones. In this regard, the franchisor will need to tailor its pre- contractual disclosure document for each franchisee and take into account, in the local market analysis, the fact that markets are heterogeneous across French territory – which may entail a substantial workload. Furthermore, given that markets in rural commercial areas and metropolitan zones are markedly different, the franchisor will need to adapt its know-how to local specificities, as communicated by its franchisees. Diverse Sectoral Opportunities In their daily lives, French households are familiar with large-scale retail brands and chain stores, and are keen on local shops, as these cater to the diversity of their needs for goods and services (fashion, food services, home improvement, vehicle maintenance, travel, etc). There are three main types of franchise, all of which are experiencing significant growth in France: • service franchises, comprising networks of real estate agents and hotels (eg, Guy Hoquet, Accor); • production franchises, in which the franchisee mar - kets products that it manufactures, such as bakery and fast-food networks (eg, Paul, La Mie Caline, Marie Blachère, Pokawa); and • distribution franchises, which involve the sale of products in retail outlets (eg, Intermarché). The food sector nonetheless remains the leading fran - chise sector in France. However, automotive service franchises and training and personal service franchis -
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