Export Promotion Services’ Matchmaker Program, in cooperation with the International Franchising Association is organizing a Franchising Trade Delegation to The Hague, Munich, Milan, and Paris, November 1-10, 1999. This event will be promoted to the U.S. franchising industry and will focus on finding master franchises and area developers in these markets.

The delegation will be led by Sam Dhir, Project Officer, Matchmaker Program.

Franchising is starting to play a significant role in the Dutch economy. Although small in numbers, the continued growth of new franchises has created industry awareness among the Dutch business community Franchises in the Netherlands are experiencing an annual growth rate of 6-8 percent. The total turnover was in excess of USD $9.5 billion. The most active franchising sectors are fast food and apparel.

Franchising continues to grow at an increasing rate in Germany. In 1997, the German market for franchised products and services grew at an annual rate of 21.9 percent and reached $17.5 billion. A further increase of 10-15 percent is expected through 2001. The U.S. holds 11.2 percent of total market share. Many of the 598 franchises in Germany are concentrated in the fast food sector. U.S. firms hold 78.1 percent of this sector.

Franchising in Italy plays a major role in the development of the local market economy. In 1997, Italy had 465 franchisers and 20,706 franchisees, which made Italy the second largest market for franchising in Europe. Although the U.S. presence in the local market is small, U.S. franchises are recognized in the sector and considered innovative and profitable enterprises.

France is ranked number three in the world in terms of the number of franchised networks. In Europe, France offers the most developed franchising market. Currently, there are 517 franchisers and 28,851 franchisees in France with a total value of USD $32.5 billion. The U.S. has a dominant franchise position among foreign franchises operating in France (45 percent). French entrepreneurs are increasingly attracted to franchising and continue to look at the U.S. as the source of advanced and innovative franchising formulas.

The mission goal is to help the new-to-market U.S. franchisers explore the potential for franchising in these countries and meet with qualified investors/entrepreneurs interested in entering into a master franchise or area developer agreement for a specified region.

Members of the franchising delegation will spend two days at each stop. In Milan, participant's appointments will be held at the Milan Franchise Show. This is the second largest franchise trade show in Europe. The Commercial Service in each country will provide an extensive market briefing and arrange one-on-one appointments with prescreened investors/entrepreneurs interested in franchising.

The Matchmaker will follow the following itinerary:

November 1-2 The Hague

November 2 Travel to Munich

November 3-4 Munich

November 4 Travel to Milan

November 5-8 Milan (6-7 Milan Franchise Show)

November 8 Travel to Paris

November 9-10 Paris

Matchmaker promotion will include but not limited to the following venues: Export Assistance Centers and Teams; relevant trade publications; the International Franchise Association and relevant trade associations; past Matchmaker and Commerce trade mission participants; and various in-house and purchased industry lists. The Matchmaker will also be listed on ITA’s and IFA’s Internet home page, and the Federal Register.

Recruitment will begin on or about July 5, 1999 and will close September 17, 1999. The participation fee for this event will be $6,000 per company. The delegation will be open to fifteen companies.

• Relevance of the company’s business line to mission goals;
• Potential for business in these markets;
• Timeliness of company’s completed application and participation form and payment of the application fee;
• Provision of information on company’s product and/or services and communication of the company’s primary objectives to facilitate appropriate matching with potential business partners;
• Certification that the company’s products and /or services are manufactured or produced in the United States or if manufactured/produced outside of the United States, the product/service must be marketed under the name of a U.S. firm and have U.S. content representing at least 51% of the value of the finished good service;
• Any partisan political activities of an applicant, including political contribution, will be entirely irrelevant to the selection process.

Sam Dhir, Project Officer

Matchmaker Trade Delegation Program

U.S. Department of Commerce, Room 2012

Washington, D.C. 20230

Tel: 202-482-4756

Fax: 202-482-0178

E-Mail: Sdhir1@mail.dov.gov