Franchising confirms to be a growing business model in Italy also in 2022

Franchising confirms to be, also in 2022, a growing and successful business model in Italy, despite the economic crisis. Operating franchise brands, points of sale and employees have grown in Italy between 2021 and 2020. The 2021 turnover of the Italian franchising industry stand at 28,867 million euros, with a growth of 6.7% compared to 2020. Such positive data are consequence of the recovery of the Italian market, and of a renewed climate of consumer confidence, combined with the desire of people to try an entrepreneurial activity. 

1. The positive results of the Italian franchise sector in 2022

According to Assofranchising – the main franchising association in Italy – franchising confirms to be, also in 2022, a growing and successful business model in Italy, despite the economic crisis.

In fact, the shock from Covid -19 has put italian small retailers in difficulty, as they are unlikely to be able to compete with the organizational, strategic and product capabillities of the big brands.
Therefore, franchising can ensure to reach optimal positioning, to satisfy a desire for entrepreneurship and to simplify start-up procedures.

Operating franchise brands have grown in Italy between 2021 and 2020, after the contraction that occurred in 2020. In fact, in 2021 the number of the operating brands in Italy as 955, with a growth of 75 brans compared to 2020.

This positive situation is also reflected in the increase in franchised sales points in Italy, which in 2021 are 59,849 (+4.7% compared to 2020). The recovery of the market, the reopening of some points of sale closed in 2020, a renewed climate of consumer confidanze, combined with the desire of peolpe to try their hand at an entreprreneurial activity, have led to an increase in employees, 238.194, that is +5% (+10,608 employees) compared to 2020.

The Northwest of Italy is in first place for the nimer of franchisors (353), followed by the Northeast (190), the Center (189), the South and Islands (193). Among the first three sectors, services (259 networks), clothing (191) and catering (160) stand out. There is a primacy of Lombardy as regards the franchised points of sale (9,781 equal to 16% of the total), followed by Lazio (6.562, 11% of the total) nd Sicily (5.325, 9% f the total). The most represented productor sector is that of services (16,082 points of sale), followed by clothing (15,090) and large – scale distribution (7,976).

The 2021 turnover of the Italian franchising industry stands at 28,867 million euros, with a growth of 6.7% compared to 2020, which reflects the trend of the Italian GDP.

Large – scale distribution confirms to be among the best performing sectors, and up by two percentage points compared to 2020. This sector accounts for 36% of the total turnover of franchising in Italy, with a turnover of 10,452 million euros, followed by clothing (7,348 million) and services (3,944).

2. Franchise networks in Italy 

FRANCHISE NETWORKS IN ITALY IN 2021

NETWORKS	#	%
Active networks	955	100%
Italian networks	925	97%
Master Franchisors active in Italy	71	7%
Networks operating in Italy only with franchisee, but with registered office in a foreign country	30	3%

FRANCHISES IN ITALY – COMPARISON WITH 2020 AND 2019

	2019	2020	2021
Turnover (mil. €)	26.153	27.058	28.867
Operating franchise brands	980	877	955
Franchise outlets	56.441	57.170	59.849
Network employees, including franchisees	217.150	227.586	238.194
Average employment per franchise outlet	3,8	4,0	4,0
VARIATIONS IN PERCENTAGE	2020/2019	2021/2020
Turnover (mil. €)	+3,5 %	+6,7%	–
Operating signs in Italy	-10,5%	+8,9%	–
Franchise outlets	+1,3%	+4,7%	–
Network employees), including franchisees	+4,8%	+4,7%	–

3. Turnover and average turnover

TURNOVER AND AVERAGE TURNOVER 2021 PER POINT OF SALE

Distribution of franchised PDV by turnover class (2021)

Up to 100 k €	14 %
From 100 k to 200 k €	27%
From 200 k to 300 k €	25%
From 300 k to 500 k €	18%
Over 500 k €	16%

28.867 mln € Turnover of franchise points of sale in 2021 1.6% of GDP .

+ 6,7 % var. % 2021/2020

+10,4 % var. % 2021/2019

 

FRANCHISORS’ TURNOVER BY GEOGRAPHICAL AREA

Franchisors’ turnover for macro geographical area, considering the headquarters of the franchisor.

 

13,244 billion euros North West (46%)

9,140 billion € North East (31%)

3,704 billion € Centre (13%)

2,224 billion € South and Islands (8%)

0,556 billion € Abroad (2%)

28,867 billion €

Total Turnover franchise 2021

 

PRODUCT CATEGORY	Franchise Turnover Year 2021 (€)	Incidence Year 2021 (%)
Men’s and women’s clothing	2.990.004	10,4%
Children’s clothing, shoes and accessories	1.542.183	5,3%
Fashion accessories (shoes, bags, eyewear, leather goods, costume jewellery)	1.406.349	4,9%
Real estate agencies and services	1.275.482	4,4%
Specialized food	224.217	0,8%
office supplies, stationery, printing	292.631	1,0%
Cars and other vehicles: products and services	605.829	2,1%
Bars, ice cream shops, cafes, yogurt shops, pastry shops, kiosks, pubs, wine bars	470.573	1,6%
Clinics, outpatient services and health products	169.931	0,6%
I buy gold and jewelry	190.674	0,7%
Consulting and assistance for the company and the person	388.961	1,3%
Cosmetics and perfumery	235.306	0,8%
Construction, renovations, systems	52.336	0,2%
Power	53.010	0,2%
Herbal medicine, dietetics, parapharmaceuticals	197.030	0,7%
Aesthetics, gyms and hairdressers	429.031	1,5%
GDO food	9.294.002	32,2%
GDO non-food	1.157.758	4,0%
Games	144.504	0,5%
Information technology, telephony, computers	362.450	1,3%
Intimate	1.409.414	4,9%
Laundries and tailors	169.965	0,6%
Libraries, photos and videos	270.453	0,9%
Pizzerias, fast food, ethnic and themed restaurants	2.715.883	9,4
Miscellaneous products and services	191.496	0,7%
Schools, training	149.404	0,5%
Childcare services	80.220	0,3%
Postal services	306.462	1,1%
Textiles, furniture, furnishing accessories, various objects	1.143.402	4,0%
Travel and tourism	948.312	3,3%
TOTAL	28.867.272	100,0%

TURNOVER 2021 AND 2020 BY PRODUCT SECTOR

Commodity sector	Turnover Franchising Year 2021 (€)	Incidence Year 2021 (%)	Turnover Franchising Year 2020 (€)	Incidence Year 2020 (%)
Clothing	7.347.949.494	25%	6,928,117,000	26%
Beauty, care and well-being	1.031.297.687	4%	1.024.672.500	4%
Home	1.195.738.416	4%	895.085.000	3%
Specialized trade	1.538.839.272	5%	1.772.253.500	7%
GDO	10.451.760.254	36%	9.181.871.000	34%
Catering	3.186.455.718	11%	2.945.422.300	11%
Services	3.944.033.617	14%	4.110.324.000	15%
Other	171.197.155	1%	200.788.000	1%
TOTAL	28.867.271.612	100%	27.058.533.300	100%

 

EXPECTED TURNOVER IN 2022

Estimated revenue of franchise point of sale 2022 by sector

COMMODITY SECTOR	FORECASTING VAR. TURNOVER 2022/21
Clothing	3,4%
Beauty	7,5%
Home	7,3%
Specialized trade	7,1%
GDO	2,7%
Catering	1,3%
Services	4,6%
Other	1,9%
Total	3,6%

4. Franchises per geographical area

ACTIVE FRANCHISES BY GEOGRAPHICAL AREA

Active franchises by macro geographical area, considering the franchisor’s headquarters

 

353 Northwest (37%)

190 North East (20%)

189 Center (20%)

193 South and Islands (20%)

30 Abroad (3%)

955 Total active networks 2021

 

FRANCHISING IN ITALY BY SECTOR – 2021 COMPARED WITH 2020 AND 2019

Sector Merchandise	North West	North East	Center	South Islands	Networks Foreign	Total 2021	Incidence (%)	Total 2020	Total 2019	Var. % 2021/20	Var.% 2020-19
Clothing	64	41	33	46	7	191	20%	180	189	6,1%	-4,8%
Beauty and personal care	46	10	25	18	5	104	11%	95	110	9,5%	-13,6%
Home	13	15	10	5	–	43	4%	45	47	-4,4%	-4.3%
Specialized trade	43	21	30	26	1	121	13%	112	125	8,0%	-10,4%
Catering	56	45	21	34	4	160	17%	144	179	11,1%	-19,6%
GDO	20	11	5	2	–	38	4%	34	43	11,8%	-20,9%
Services	96	43	57	52	11	259	27%	232	240	11,6%	-3,3%
Other	15	4	8	10	2	39	4%	35	47	11,4%	-25,5%
Total	353	190	189	193	30	955	100%	877	980	8,9%	-10,5%

 

FRANCHISING IN ITALY BY MACRO SECTOR – 2021 COMPARISON WITH 2020 AND 2019

Sector Merchandise	North West	North East	Center	South Islands	Networks Foreign	Total 2021	Incidence (%)	Total 2020	Total 2019	Var. % 2021/20	Var.% 2020-19
Clothing and beauty	110	51	58	64	12	295	31%	275	299	7,3%	-1,3%
Home	13	15	10	5	–	43	4%	45	47	-4,4%	-4,3%
Specialized trade	43	21	30	26	1	121	13%	112	125	8,0%	-10,4%
GDO	20	11	5	2	–	38	4%	34	43	11,8%	-20,9%
Catering and services	152	88	78	86	15	419	44%	376	419	11,4%	0,0%
Other	15	4	8	10	2	39	4%	35	47	11,4%	-25,5%
Total	353	190	189	193	30	955	100%	877	980	8,9%	-10,5%

  

FRANCHISE OUTLETS IN 2021

Number of stores by region Direct and Franchise in 2021.

CARTINA

ITALY

N. of sales outlets:

• Totals: 76.810 (100%)
• Direct : 16.961 (22%)
• In Franchise: 59.849 ( 78%)

 

TOP 5 Regions

n. franchising outlets:

	N.	%
Lombardy	9.781	16%
Lazio	6.562	11%
Sicily	5.325	9%
Campania	4.735	8%
Piedmont	4.638	8%

 

Northwest Points of sale in Franchise	16.422	27%
Northeast Points of sale in franchise	10.202	17%
Center Points of sale in franchise	13.718	23%
South Islands Points of sale in franchise	19.507	33%

 

FRANCHISING POINTS OF SALE BY PRODUCT SECTOR

Number of franchise sales outlets in Italy in 2021 by product sector .

Services	16.082 (27%)
Clothing	15.090 (25%)
GDO	7.976 (14%)
Specialized trade	7.933 (13%)
Catering	4.675 (8%)
Beauty and personal care	4.311 (7%)
Home	2.560 (4%)
Other	1.221 (2%)
TOTAL PVF	59.849

Avv. Valerio Pandolfini

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The information contained in this article is of a general nature and is not to be considered an exhaustive examination of the various issues, nor is it intended to express an opinion or provide legal advice. Specific legal advice must be provided with regard to individual cases.