Franchising is not the only way to start a business and benefit from the know-how and reputation of a brand. Hundreds of networks operate as groups or cooperatives.
In partnership with
According to the Fédération du Commerce Coopératif et Associé (FCA), the associated trade sector accounts for the equivalent of 7% of France's GDP. With 178 different banners and almost 45,000 points of sale, this branch of commerce differs from integrated networks in that it federates several independent retailers under a single banner, and from franchise networks in that it operates in a particular way. For, as its name suggests, associated commerce brings together "associates" on the principle of "one person, one vote". In other words, whereas in a franchise system, the head of the network retains control over the essential elements of the brand's strategy, and gives franchisees the right to duplicate its concept in return for the payment of royalties, retailers in groups or cooperatives are shareholders in the brand, and take decisions collectively.
Some thirty sectors of activity
The fields of action of associated commerce are vast, covering some thirty different sectors. In the food sector, we find brands such as Leclerc, Intermarché and Système U, Biocoop in organic food distribution and Netto in hard discount; in the optical sector, networks such as Atol les Opticiens, Krys, Lynx Optique and Optic 2000; Intersport and Sport 2000 in the sports and leisure sector; Point S in the automotive sector; Poivre Rouge and Best Western in the hotel-restaurant sector; Orpi and L'Adresse in the real estate sector... Examples of nationally and, in some cases, internationally renowned brands are legion. In all, the 178 chains of the associated trade represent 32,430 entrepreneurs and employ over 540,000 people. The opportunities for entrepreneurship in this model are therefore numerous.
Associated trade withstands crises
In 2015, the chains of the associated trade together achieved record sales of 146.9 billion euros, up 3% on 2014. A feat when compared with the performance of the retail sector as a whole, estimated by the FCA at +1% on average over the same period. Generally speaking, the associated trade has always "outperformed" the average over the last twelve years, with a positive growth rate every year. This includes the years when the retail sector declined or stagnated as a result of the financial crisis (-0.2% growth in 2008 vs. 4.9% for the associated trade, 0% in 2009 vs. 0.9%, then a further decline in 2013 with -0.5% for the retail sector vs. +3.1% for the associated trade, idem in 2014: decline of 0.4% vs. +1.01%).
It's a reassuring endorsement of this entrepreneurial model for industry professionals. " We are crisis shock absorbers and growth gas pedals," declared FCA Chairman Eric Plat, who is also Chairman and CEO of Atol les Opticiens, when he announced the annual results of the associated trade to the press on May 24.
6,000 businesses to take over
The vast majority of groups and cooperatives have been developing in France for several decades. For many of the independent retailers who joined the adventure early on, the time has now come to retire. As a result, "more than 6,000 independent retailers will be looking for buyers over the next 5 years", says the FCA. This means that, every year, there are almost 1,200 opportunities to take over businesses throughoutFrance. This is an opportunity for any aspiring entrepreneur with the necessary capital to invest - because a turnkey store takeover, with its equipment, customer database and teams, is generally more expensive than a start-up from scratch - and who wants to get started quickly.
Article published on the Le Parisien website in partnership with Les Echos de la Franchise
