Franchising
Gains Popularity in Italy:
In Shaky Economy, Prospective Business Owners See Chain Stores as Safter
Option
By Allesandro AgostiniItaly-based franchising operations are growing more popular, according to a study published by Quadrante in May 2002. The report indicates that Italian franchising affiliates rose by 25 percent in 2001 and that franchising-related employment rose by 43 percent.
The increase represents a marked interest in Italian franchising among individual investors and prospective business owners. After witnessing economic recession for the last two years, young or inexperienced entrepreneurs may feel more comfortable working with a well-known franchise than starting a store or business on their own.
The success of American franchises in Italy is paving the way for more local and European-based operations. One example is the U.S.-based company MailBoxes, Etc. (MBE). Owned by UPS, the company is the world's largest franchiser of retail postal, shipping, and business services. Graziano Fiorelli, an entrepreneur who acquired exclusive rights to the company's Italian franchise license, introduced MBE in Italy in 1993. By 1996, there were 136 MBE locations in Italy; by 1999, there were 312. Today the company manages more than 400 Italian affiliates.
Investors interested in Italian franchising opportunities can have their pick among a wide range of business options. Popular choices include restaurants, hair salons, coffee shops, Laundromats, and toy stores.
The amount of capital required to apply for a franchising license varies by company. For example, Party World, a chain of stores specializing in party planning, requires an investment of 65,000 euro (about $61,000 US); the sum includes a joining fee, furniture, software, and start-up inventory.
Privatassistenza, a company offering support and assistance to the blind and elderly, requires an investment of 30,000 to 40,000 euro (about $28,000 to $38,000 US). Millebolle, a coin-operated laundry chain, requires an investment of 50,000 to 100,000 euro (about $47,000 to $94,000 US), depending on the number of washing machines you want.
Most Italian franchising contracts include a training course, a tutoring period, exclusive rights to a zone, and general help and business assistance.
To learn more about franchising opportunities for a specific business, go to the company web site. Many companies have franchise information request forms that you can fill out online.
About Allesandro Agostini
Allesandro Agostini has worked as a management consultant since 1989. His
career management advice has been featured in numerous newspaper and magazine
articles. He launched an Internet job search engine in 1999, the first of
its kind in the Italian career services market.
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