This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/16/2019

Overview

Franchising is a popular and well-established business form in the Netherlands.  In the last 20 years, both the number of franchise systems and the total number of units have more than doubled.  Currently, there are an estimated four franchise units per 100,000 inhabitants. The Dutch franchise sector saw a turnover of approximately $67 billion in 2018.  Most of the revenue came from automotive (40 percent) and food retail (28 percent) franchises, followed by non-food retail (17 percent).  There were 34,179 franchise units in the Netherlands in 2018, and the industry employed 375,800 people.   Roughly 1,000 franchise systems currently operate in the Netherlands.

Most franchises in the Netherlands are Dutch owned (90 percent), but U.S. restaurant franchises have a large presence, with the number having doubled in the past three years.  In the past year, several large U.S. restaurant chains have entered the market or announced plans to enter soon.   There are no regulations that limit access to the market for U.S. firms, but the Dutch market is saturated in many areas, making it necessary for foreign systems to differentiate themselves from existing franchise concepts.  Master franchise fees for domestic franchises are generally lower than for U.S. franchises, creating competition from cheaper, local systems.  
 
Franchise systems are subject to national competition regulations and fair-trading laws.  The Dutch Franchise Code (NFC) contains self-regulating rules of conduct for the sector.


Leading Sub-Sectors

U.S. franchises from a variety of sectors have been very successful in the Netherlands.  Name-recognition, competitive pricing, and commitment to working closely with a local partner are the most significant factors in determining the viability of a new concept. 


Opportunities

The Netherlands is often described as an attractive market for U.S. franchises looking to test the European market before rolling out to the rest of the continent.  This is attributed to the Dutch openness towards new concepts as well as the transparent nature of the market and the rules governing franchises. 

The Netherlands also offers U.S. companies the advantage of a population that is well educated and generally fluent in English.  Companies seeking to enter the Dutch market can benefit from a strong network of experienced bankers, lawyers, accountants, consultants, and other advisors who specialize in franchising. 


Web Resources

Key Contacts:                       Franchise+
Franchise+ is an online news site and a bimonthly magazine that offers advice to (potential) franchisees and runs advertisements for franchisers.

De Nationale Franchise Gids
De Nationale Franchise Gids is a handbook published annually, which contains descriptions of virtually all franchise systems present in the Netherlands (and Belgium) as well as advertisements for franchisers.  The guide is also available online.

FranchiseFormules.NL
FranchiseFormules.NL is a matchmaking site for franchisers looking to connect with qualified potential franchisees.



Trade Events:                      Onderneem ’t!
                                                Spring 2019 | Nijkerk
Annual trade show geared towards established franchisors looking to attract new franchisees.
                                                Onderneem ‘t!

Contact:                                Alec Boydston, Commercial Specialist                                      
U.S. Commercial Service – The Netherlands
Alec.boydston@trade.gov | +31 70 310 2420
 

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.