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.
