Set Up a Franchise Business in France

France is one of the best countries in Europe for starting a business in, considering its economic background and the uniform development of most industries. During the last several years, a new type of venture has emerged in France: the franchise.

Franchise businesses have appeared as a response to the high demand of the French population for international brands. However, local brands also started developing at the same time and local franchises are quite popular now.

Foreign enterprisers can set up both local and international franchise businesses in France. Our company formation agents in France can assist with the registration of a franchise business.

The franchise market in France

At the moment, most franchise businesses operate in the following French industries:

• -          clothing;
• -          retail;
• -          food and beverages;
• -          automotive;
• -          construction;
• -          business services.

A particularity of the French franchise market is that foreign investors deciding to set up this type of venture here can choose specific types of companies which can help them reduce the taxes, among these the holding company is the most preferred vehicles.

Our company registration consultants in France can help you register a holding company.

How to register a franchise business in France

Local and foreign businessmen who want to set up franchise businesses in France must comply with the Commercial Act, which is the only law providing for the franchise agreement. The first step to create a French franchise business is to register a company with the Trade Register, followed by the negotiation and preparation of the franchise agreement.

There are three main types of franchise businesses one can open in France:

• -          the direct franchise which a more limited type of venture offering a high degree of control to the franchisor and which implies a thorough selection of the franchisees;
• -          the joint-venture franchise which is more of a partnership between the franchisor and the franchisee;
• -          the master franchise which offers a high degree of control to the franchisee who can also sublet the franchise to other distributors.

If you want to create a franchise business in France and need more information on the franchise agreement, please feel free to contact our local company registration advisors.