Franchising in Italy confirms to be healthy also in 2023
According to Assofranchising’s survey on franchising in Italy, referred to the year 2023, Franchising in Italy continues to show a growth trend, with a turnover increase of 9.9%, approaching 34 billion euros. The number of franchising points of sale has also grown during 2023, with a greater acceleration compared to the trend recorded in the past (7.6% against 2.2%). Franchising confirms to be an excellent business accelerator in Italy, provided that there is management efficiency. Affiliation with a franchisor is therefore consolidated as a solution capable of offering rapid strategic positioning and reducing risks and uncertainties. This model remains a strategic choice to enter Italian market with a solid basis, reducing overall risk.
According to Assofranchising’s survey on franchising in Italy, referred to the year 2023, rationalization is the key word. In fact, the number of the franchised points of sale and of employees involved in the franchising sector is growing compared to 2022, while the number of active brands is decreasing.
Franchising confirms to be an excellent business accelerator in Italy, provided that there is management efficiency. Affiliation with a franchisor is therefore consolidated as a solution capable of offering rapid strategic positioning and reducing risks and uncertainties. This model remains a strategic choice to enter Italian market with a solid basis, reducing overall risk.
Franchising in Italy continues to show a growth trend, with a turnover increase of 9.9%, approaching 34 billion euros. The number of franchising points of sale has also grown during 2023, with a greater acceleration compared to the trend recorded in the past (7.6% against 2.2%). Likewise, the total number of franchised sales points grows, reaching 65,806 (+4,664 units) and the number of employees, which with 34,919 more units, stands at a total of 287,767. During 2024, a growth of +4,3% is expected in the total turnover in the Italian franchising sector.
The elements that have characterized such growth are attributable in particular to the investments made to involve new franchisees, in particular by large brands and the creation of new brands. o Finally, the number of operational brands, despite the addition of new players, continues a downward trend that was accentuated in 2020. In 2023, in fact, 25 brands will no longer exist.
In 2023, the initial investment, which the franchisee must support to undertake the online business, exceeds 110,000 euros. This situation is attributable to a lesser extent to the inflation that characterized the two-year period 2022-2023 and primarily to the inclusion of new brands with more impactful installation activities.
The duration of the contract is a crucial factor on which franchisors and franchisees base their commercial relationship and overall investments in the franchised point of sale. A short duration of agreements reflects a necessarily rapid business model, capable of growing quickly to guarantee a rapid return on investment. In 2022, almost one in two contracts had an average duration of 5 years, while one in four exceeded 6 years. In 2023, there has been an increase in brands that prefer a duration of more than 5 years.
In 70% of cases, franchise agreements provide that an entry fee is due, with an average amount of €. 15,770.
8 out of 10 franchise chains have multi-affiliates, i.e. franchisees with the right to operate with more than one unit or point of sale within a pre-established area.
Small and medium-small store surfaces (up to 80 m2) are the most widespread and the smallest (up to 40 m2) are growing compared to 2022. In the next three years, 97% of the franchisors foresee to open new points of sale.
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.
